Nvidia’s profits for the quarter increased by 65% to $31.91 billion

Driven by its data center business, US chipmaker Nvidia posted a profit of $31.91 billion in the third quarter of its fiscal year, a 65% year-over-year gain.

Data centers contributed $51.215 billion to the top artificial intelligence (AI) company’s revenue of $57.006 billion. A 62% rise, according to its findings, which were announced after market closed.

In the midst of widespread worries about an AI bubble, Nvidia projected revenue for the fourth fiscal quarter that above Wall Street projections. Depending on rising demand for its AI processors from cloud service providers.

As international markets await the chip designer to see if its multibillion-dollar investment in growing AI infrastructure has resulted in outrageous valuations that may surpass fundamentals. The results from the AI chip leader represent a critical time for Wall Street.

According to statistics gathered by LSEG, the most valuable corporation in the world stated that it anticipates sales of $65 billion in its fiscal fourth quarter. With a margin of error of plus or minus 2%, in contrast to the average analyst forecast of $61.66 billion.

In after-hours trading, shares of the top AI market participant increased by more than 4%.

The stock price had dropped by around 8% in November prior to the earnings release, after rising by 1,200% over the previous three years. This month, the overall market has dropped by over 3%.