Nvidia had a strong third quarter, exceeding analysts’ expectations for revenue and earnings. However, the company’s stock price declined in after-hours trading due to investors’ even higher expectations for the future. Despite this decline, Nvidia continues to demonstrate impressive growth and maintains its position as market leader in the AI chip space with over 95% market share.

Nvidia’s net income and diluted EPS both increased by 1,274% compared to the same time last year. Additionally, revenue surged by 206% to $18.1 billion in the latest quarter, marking significant growth in the AI industry.

Despite this growth and expectations of $20 billion in revenue for the fourth quarter, Nvidia’s stock fell approximately 1% in after-hours trading. However, the company’s data center business has experienced rapid growth, with revenue reaching a record $14.51 billion in the most recent quarter. This is crucial for cloud and AI services.

As demand for AI products continues to increase, Nvidia remains well-positioned among chipmakers and has expanded its product line to cater to the Chinese market despite U.S export restrictions. The company has successfully adapted to these challenges and is on track for continued growth in the future.

Nvidia’s stock has tripled in value over the past year, reaching an all-time high of over $504 per share just one day before the third-quarter earnings report.