Nvidia shares climbed Wednesday after it beat quarterly earnings expectations on fierce demand for its sophisticated chips for powering artificial intelligence.
The solid results come amid increasing talk among Wall Street analysts of an AI bubble, with all eyes on how Nvidia, the industry's bellwether company, will weather the doubts.
Nvidia reported profit of $31.9 billion on record-high quarterly revenue of $57 billion, sending shares up more than 3 percent.
It also took in some 60 percent more money in the quarter than it did during the same period the prior year, according to earnings figures.
"Blackwell sales are off the charts, and cloud GPUs are sold out," Nvidia chief executive Jensen Huang said in an earnings release, referring to the latest model of its state-of-the-art hardware.
"The AI ecosystem is scaling fast — with more new foundation model makers, more AI startups, across more industries, and in more countries."
Revenue in the current quarter is expected to be $65.0 billion, nearly $3 billion more than forecast by Wall Street analysts.
Most of the money brought in during the recently ended quarter came from Nvidia's unit devoted to graphics processing units (GPUs) for data centers.
The company's data center business generated $51.2 billion in revenue, up 25 percent from the previous quarter and 66 percent year-on-year.
In the period, Nvidia announced strategic partnerships with OpenAI to deploy at least 10 gigawatts of systems for next-generation AI infrastructure, while Anthropic will adopt one gigawatt of compute capacity using Nvidia's latest systems.
Nvidia was valued at more than $4.5 trillion based on the number of outstanding shares.
AI industry rivals have been pouring billions of dollars into Nvidia's prized GPUs to power the technology despite questions regarding how the investments will pay off.
Nvidia is caught up in President Donald Trump's trade war with China, where Beijing has responded by expressing national security concerns about Nvidia chips and urging Chinese businesses to rely on local suppliers instead.
Nvidia serves as a bellwether and became the first company to reach $4 trillion in market value last July.
