Nvidia (NVDA, Financial), a leading semiconductor company, announced record third-quarter revenue of $35.1 billion, $2 billion above Wall Street forecast. The chipmaker reported net income of $19 billion, helped by higher consumption of its artificial intelligence hardware and software products.

The company’s president, CEO Jensen Huang, once pointed out that Nvidia was experiencing healthy AI-led growth because the age of AI has already arrived and everyone from corporations to governments around the world are betting heavily on it. Huang also reassured the strong demand for the now in production Blackwell processing platform and current generation of Hopper processors.

Still, Nvidia shares fell nearly 2% to $143.24 after hours, mainly due to shrinking profit margins and increased competition. Experts also pointed to challenges such as geopolitical risks related to relations between Washington and Beijing and the company’s dependence on the Taiwan Semiconductor Manufacturing Company (TSM, Financial).

The company has become the most valuable company in the world in recent days, overtaking Apple as demand for AI rises worldwide. Major tech companies rely on Nvidia’s chips to run models like ChatGPT, demonstrating its market leadership.

Nevertheless, there are voices of caution for Nvidia; the company still has an advantage with its CUDA platform and a first mover advantage in the AI ​​industry. An AMD spokeswoman couldn’t immediately confirm delivery numbers, but it appears the company will have to tread carefully; Blackwell’s rollout, as well as competition from AMD and customer-developed chips, leaves little room for error, according to emarketer Jacob Bourne.

Nvidia has been crucial during industries’ ongoing shift to AI, with observers keeping an eye on developments in 2025 amid experiments around the world.

This article first appeared on GuruFocus.