NEW YORK (CNN/Money) - Graphics chipmaker nVidia Corp. Wednesday logged a fiscal first-quarter profit that narrowly beat Wall Street's expectations on revenue that soared 142 percent.

At the same time, executives of nVidia raised expectations for the company's performance in the current quarter and the full fiscal year, promising to deliver its next generation of graphics processors in the fall and continue to enhance its current line of products.

"We believe we're well positioned to outgrow the market this year," Jen-Hsun Huang, nVidia's president and CEO, said during a conference call Wednesday evening.

After the close of trading, nVidia (NVDA: Research, Estimates) reported a profit of $83.2 million, or 47 cents per share, for the quarter ended April 28.

That compares with $26.7 million, or 16 cents per share, during the same quarter last year and was a penny more than the 46 cents per share analysts generally had expected, according to a survey conducted by earnings tracker First Call.

At $582.9 million, nVidia's fiscal first-quarter revenue rose 142 percent from $240.9 million in the year-ago quarter.

The company attributed the strong results to broad market acceptance of its products as well a successful transition of its core desktop computer graphics accelerator product line as well as market share gains.

Huang claimed that nVidia now garners 42 percent of the market for PC graphics chips.

The company is the top supplier of graphics processors used in PCs, and its products -- including the flagship "GeForce" line -- are used by all major PC makers, including Dell (DELL: Research, Estimates), Hewlett-Packard (HPQ: Research, Estimates), Gateway (GTW: Research, Estimates), IBM (IBM: Research, Estimates) and Apple (AAPL: Research, Estimates).

It also supplies the graphics chips used in Microsoft's (MSFT: Research, Estimates) Xbox video game console.

Shares of nVidia have been pressured in recent months amid concerns about a Securities and Exchange Commission probe, which led to a restatement of its financial results for the past three years.

After the restatement, which was filed on April 29, nVidia reported total net income for the three-year period was increased by roughly $1.3 million, and its shares have since recovered some of their losses.

The stock rose 4 percent on Nasdaq ahead of the earnings news, which was released after the closing bell. It lost some ground in extended hours trade.

Moving forward, Huang said nVidia is aiming for revenue to rise between 1 percent and 3 percent in the current quarter over the $582.9 million it just reported for the first quarter.

At last count, most analysts had expected nVidia's second quarter revenue to come in nearer $550.4 million, suggesting a 5.5 percent sequential decline, according to the First Call survey.

Earnings in the second quarter are likely to be in a range between 44 cents and 47 cents per share, compared with the most recent consensus estimate for a profit of 44 cents per share.

However, Huang cautioned analysts to expect "dramatically higher" expenses in the current quarter as the company continues the development of its next-generation graphics processor, due out next fall, and enhances its existing product lines.

Gross margins also will be pressured in the current quarter because of revenue deferrals resulting from the company's arbitration with Microsoft, Huang said.

Last month, nVidia entered into arbitration talks with Microsoft regarding its contract to supply the graphics chips for the Xbox video-game console. The dispute stems from features nVidia claims it added to the Xbox chip set, which increased its manufacturing cost. The arbitration process is expected to last several months.

For all of fiscal 2003, Huang said nVidia is aiming for total revenue in a range between $2.3 billion and $2.5 billion. He did not provide a specific full-year earnings target.

At last count, analysts polled by First Call generally had expected the company to log $2.3 billion in revenue for the year.