Nvidia published its Q3 earnings yesterday and the numbers are encouraging. The company reported a 15% increase in revenue and even bigger gains in net income.

The chipmaker reported $3.43 billion in revenue for the first three quarters of the year, up 15% year-on-year. In terms of sequential growth, Nvidia’s Q3 revenue was $1.225 billion vs. $1.1 billion in Q2.

Analysts were expecting $1.2 billion.

GPU business grows 13%

Big gains came from Nvidia’s core business, as GPU revenues grew 13 percent year-on-year. Nvidia reported strong sales of desktop and laptop GPUs and GeForce branded products gained 36 percent in various segments.

The company also reported a record quarter for Tesla compute products and strong revenues for its professional Quadro products, despite the fact that it lost Apple’s Mac Pro business. The exact figures for compute products were not released.

It should be noted that Nvidia ended the quarter on a high note with the release of second-generation Maxwell products, so Geforce revenue should remain strong moving forward.

Tegra bounces back

Nvidia’s SoC business struggled last year, but it has bounced back following the introduction of Tegra K1 series chips. The company reported Tegra revenue of $168 million this quarter, up 51 percent from a year ago.

Automotive revenue doubled, but revenue from embedded systems and other Tegra markets also grew. Nvidia CFO Colette Kress also cited the “onset of Shield tablet sales” as a contributing factor.

Nvidia CEO Jen-Hsun Huang said growth drivers “kicked in” on several fronts:

“High-performance computing, virtualization and web service providers have created demand for our GPU-accelerated datacenter platforms. Automakers are using Tegra to help reinvent the driving experience. And our new Maxwell architecture is a giant leap forward that has triggered a major upgrade cycle by PC gamers.”

However, despite the gains Nvidia’s Tegra business is still struggling in terms of profitability.