Nvidia has filed the most impressive third-quarter earnings ever, with huge demand in its artificial intelligence (AI) chips remaining the driving force behind the growth of the company. Revenue for the quarter ended on October 27 increased by 94% from last year to total $35.08 billion, which topped analysts’ expectations of $33.16 billion. Adjusted earnings per share (EPS) were 81 cents against the estimate of 75 cents. The company’s data center business, the one thing to which its revenue is majorly accredited, was at $30.8 billion, an increase of 112% from the previous year.

Success is attributed to the company due to the increasing demand for AI, with big customers such as Microsoft, Oracle and OpenAI now employing Nvidia’s next-generation AI chip, Blackwell. It is expected to play a crucial role in accelerating the development of AI infrastructure. The report indicates that till then, Nvidia has shipped 13,000 samples of Blackwell to its partners and started full production. The company anticipates significant revenue from Blackwell in the fourth quarter, despite ongoing supply constraints.

Nvidia posted net income of $19.3 billion or 78 cents per share for the quarter, up from $9.24 billion or 67 cents per share in the same quarter last year. Gross margin improved to 73.5%, reflecting higher sales in the data center division. However, the company acknowledged that demand for Blackwell would exceed supply for several quarters into fiscal 2026.

Whereas the company’s data center business remains its biggest source of revenue, Nvidia also gained elsewhere. The gaming business delivered $3.28 billion in the quarter, edging beyond estimated $3.03 billion on increased demand for GPUs in PCs, laptops and game consoles, including the Nintendo Switch. Its automotive business unit also delivered solid growth, its sales gaining 72% to $449 million, largely on self-driving car chips.

Though the results are strong, after hours, Nvidia’s shares declined by 2%. As the fourth quarter is coming, the company projects $37.5 billion, that’s 70% year-over-year growth, which represents a slowdown compared to last year’s rapid growth.

Nvidia’s leadership in the AI space has put it at the top of the most valuable publicly traded companies in 2024, with shares nearly tripling this year. As it prepares to ramp up production and shipment of its cutting-edge chips, nothing seems to get in its way.