Nvidia (NASDAQ:NVDA) reported third-quarter results that exceeded Wall Street expectations, showcasing the company’s continued strength. The earnings per share reached $0.81, with revenues totaling $35.1 billion, surpassing forecasts of $0.75 EPS and $33.09 billion in revenue. The data center segment was particularly robust, generating $30.8 billion, which is a significant 17% increase from the last quarter and an impressive 112% growth year-over-year, which also exceeded the anticipated $28.84 billion.

However, Nvidia’s fourth-quarter guidance has not met investor expectations. The company anticipates revenue of around $37.5 billion, plus or minus 2%, slightly better than the predicted $37.09 billion. The gross margins are projected at 73.0% with a possible variance of 50 basis points.

Market sentiment turned cautious as Nvidia’s shares fell by over 2% in pre-market trading, reflecting concern over the upcoming quarter’s subdued expectations even amid strong AI demand.