Revenue for the quarter was $35.1 billion, up 94% from a year ago and up 17% from the previous quarter. Profits were $19.3 billion, up 109% from the same period last year. Gross margins fell slightly to 74.6% this quarter, compared to 75.1% in the second quarter. But even that was better than expected. UBS had forecast a 200 basis point cut in gross margin, an analyst note from earlier this month showed.

GAAP earnings per share increased 111% compared to last year, to $0.78 per share.

“Explosive profits again,” said Alonso Munoz, chief investment officer of Hamilton Capital Partners.

The stock market’s darling and primary beneficiary of the AI ​​boom was expected to deliver another standout quarter. Anything less would have disappointed the markets. Nvidia exceeded expectations on all fronts and exceeded analysts’ growth expectations. The main concern for the stock, which has seen a meteoric rise of 200% since the start of the year, remains whether it can continue to grow at the pace it has so far. Revenue of $35.1 billion exceeded expectations of somewhere between $34 billion and $35 billion.

Most of Nvidia’s revenue comes from its data center business, which includes sales of the components used to power AI products. Sales for that division were $30.8 billion, higher than the roughly $28 billion some had expected.

The run-up to the earnings call was accompanied by some tension. The stock fell 1% on Wednesday ahead of the earnings report, which is expected to be released after the market close. Shares fell 2% in after-hours trading. The movements in stock prices were expected as investors sought to make profits by selling at what they believed was the peak. Investors who continue to hold the stock should grit their teeth and believe in the company’s continued growth trajectory, which has once again proven true. “We’re optimistic that we expected this,” Munoz said.

During the call, Nvidia CEO Jensen Huang addressed the question of its new Blackwell chips. Huang said the company shipped more Blackwell chips than expected this quarter. “Blackwell’s production is running at full speed,” Huang said. Investors had previously wondered whether there were production delays in the new chip.

Concerns intensified this week when the technical publication was published The information reported that Blackwell was overheating in certain data center racks. Nvidia said it was “normal and expected” that certain customers would need to change the configuration of their data center racks.

Perhaps the only lingering concern is that Blackwell’s immediate rollout would lead to a slight decline in gross margin toward the low 70s, Nvidia Chief Financial Officer Collette Kress said on the call. She added that the decline was expected to be temporary. “We will start to grow into our gross margins,” Kress said.