Nvidia (NVDA) smashed analyst expectations for third-quarter financials after the bell Tuesday 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. Revenue soared by 206% to $18.1 billion amid massive data center revenue gains.

Nvidia expects revenue of $20 billion plus or minus 2% in the fourth quarter, but investors clearly had even higher expectations despite the massive 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 chipmaker’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.