Nvidia (NVDA) smashed analyst expectations⛄ for third-quarter financials after the bell 𒉰Tuesday as adjusted earnings per share (EPS) and revenue came in many times over levels in the prior-year quarter while the AI space continues to heat up.

Nvidia reported net income of $9.2 billion on diluted EPS of $3.71 per share, up 1,274% compared with this time last year. Reven✨ueဣ soared by 206% to $18.1 billion amid massive data center revenue gains.

Nvidia expects revenue of $2♔0 billion plus or minus 2% in the fourth quarter, but investors clearly had even higher expectations despite the massiv🌜e growth as the stock fell roughly 1% in after-hours trading.

The firm's data center business, key to companies providing popular services like cloud and AI, has reached stratospheric heights. For the latest quarter, data center revenue hit a record $14.51 billion compared with $3.8 billion just last year at this time and higher than the $12.7 billion anticipated by analysts polled by Visible Alpha.

Among chipmakers, Nvidia is perhaps the best-positioned to benefit from the continuing surge of interest in AI. Nvidia's products are in high demand and the company enjoys as much as 95% market share of the AI chip space.

This is despite the fact that the U.S. has launched export controls that could limit the ch🏅ipmaker's ability ⭕to deliver products to China, one of ꧟the fastest-growing markets. That's because Nvidia responded quickly with a new suite of products designed for the Chinese market and in compliance with U.S. export restrictions.

One day before its third-quarter earnings report, Nvidia stock reached an all-time high of more than $504 per share. The company's stock has more than tripled in the past year as of Nov. 21, 2023.