Nvidia reported its third quarter earnings on Thursday afternoon and the positive figures prompted a 6.8 percent surge in Nvidia stock in late trading.

A quick glance at the report reveals some surprisingly positive trends. Revenue increased 4.9 percent from $1.02 billion to $1.07 billion sequentially. Net income was $217 million, or $0.35 per share, while non-GAAP gross margin increased to 52.5 percent. Analysts had predicted revenue of $1.06 billion, with $0.31 income per share.

Despite the fact that the discrete graphics market is showing signs of fatigue, Nvidia’s workstation business posted surprisingly good results and Tegra development is also starting to pay dividends. With discrete graphics revenue projected to dwindle over the next few years, Tegra is expected to play an increasingly important role.