Nvidia had a successful third quarter, beating analysts’ expectations for both revenue and earnings. However, its stock lost ground in after-hours trading due to investors’ even higher expectations for the company. Despite the stock’s decline, Nvidia continues to exhibit strong growth and maintains as much as 95% market share of the AI chip space.

In the third quarter, Nvidia’s net income and diluted EPS both increased by 1,274% compared to the same time last year. The company’s revenue also surged by 206% to $18.1 billion, marking significant growth in the AI space. The data center business of Nvidia has experienced rapid growth with revenue reaching a record $14.51 billion in the latest quarter.

Despite this growth and expectations of $20 billion in revenue for the fourth quarter, Nvidia’s stock fell approximately 1% in after-hours trading. Yet, Nvidia has tripled in value over the past year, culminating in an all-time high of over $504 per share just one day before the third-quarter earnings report. As demand for AI products continues to surge, Nvidia remains well-positioned among chipmakers and has expanded its suite of products to cater to the Chinese market despite U.S export restrictions.