Nvidia posts higher 1st-qtr profit, yet shrs slip

(Adds analyst's comments)

SAN FRANCISCO, May 8 (Reuters) - Nvidia Corp (NVDA.O) posted higher quarterly profit on Thursday as revenues rose 37 percent on strong sales of its graphics processors, but shares fell as earnings still missed expectations.

Nvidia's gross margin also came in below the consensus view, said Caris & Co. analyst Nicholas Aberle.

"Revenues were in line, but the downside was gross margin, which came in about (1 percent) below what the Street was looking for," Aberle said.

Nvidia had a gross margin of 44.9 percent in the quarter, compared with Wall Street expectations of 46 percent, Aberle said.

First-quarter net income rose to $176.8 million, or 30 cents a share, from $132.3 million, or 22 cents a share, a year ago. Analysts expected profit of 32 cents a share, on average, according to Reuters Estimates.

Revenue increased to $1.15 billion from $844.3 million, matching expectations.

The company reported its best first quarter ever as it sold 42 percent more graphics processor units than a year ago. It also said the growth of processor chips continues to outpace growth in the PC market.