Nvidia (NVDA, Financial), a leading semicoductor company announced record sales of $35.1 billion for the third quarter, $2 bilion above the Wall Street forecast. The chipmaking giant reported $19 billion in net income, helped by higher consumption of its artificial intelligence hardware and software products.

The director of the company, CEO Jensen Huang, once pointed out that Nvidia had been enjoying healthy AI-led growth because the age of AI' is already here, and everyone from enterprises to governments across the globe is betting heavily on it. Huang also reassured strong demand for the now-in-production Blackwell processing platform and current-generation Hopper processors.

Nonetheless, shares of Nvidia fell almost 2% after hours to $143.24, mainly due to narrowing profit margins and increased competition. Experts also pointed out challenges such as geopolitical risks associated with relations between Washington and Beijing and the company's dependence on the Taiwan Semiconductor Manufacturing Company (TSM, Financial).

The company has grown into the world's most valuable in recent days, overtaking Apple as AI demand rises globally. Big tech firms rely on Nvidia's chips to run models such as ChatGPT, which shows its market leadership.

Nonetheless, there are voices of warning for Nvidia; the company still has an advantage with its CUDA platform and a first-mover advantage in the AI industry. A spokeswoman for AMD could not immediately confirm its shipment numbers, but it seems the company will have to tread carefully; Blackwell's rollout, as well as competition from AMD and customer-developed chips, afford little margin for error, according to Emarketer Jacob Bourne.

Nvidia has been critical during industries' continued shift toward AI, with observers watching its 2025 moves amid experimentations worldwide.