NVIDIA Corp (NASDAQ:NVDA) stock fell 2.62% (As on February 27, 11:20:28 AM UTC-4, Source: Google Finance) after the company  reported fourth-quarter earnings that beat Wall Street expectations. The company also provided strong guidance for the current quarter. Net income during the quarter rose to $22.09 billion versus $12.29 billion, in the year-ago period. Nvidia reported a 73% gross margin in the quarter, which was down three points on an annual basis. The company said the decline in gross margin was due to newer data center products that were more complicated and expensive. Revenue continues to surge at Nvidia as the company rides the AI boom with its data center graphics processing units, or GPUs, which comprise the vast majority of the market for AI accelerators. Nvidia’s revenue for full fiscal-year revenue rose 114% to $130.5 billion.

NVDA in the fourth quarter of FY 24 has reported the adjusted earnings per share of 89 cents, beating the analysts’ estimates for the adjusted earnings per share of 84 cents, as per estimates from analysts polled by LSEG. The company had reported the adjusted revenue growth of 78 percent to $39.33 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $38.05 billion. Nvidia said it had $11 billion in Blackwell revenue during the fourth quarter. Blackwell sales were led by large cloud service providers which represented approximately 50% of the Data Center revenue. Blackwell sales, as well as sales of the previous generation Hopper AI chips, are reported in the company’s data center business. That unit now represents 91% of the company’s total sales, up from 83% a year ago and 60% in the same period of 2023.

Moreover, Nvidia said it had $35.6 billion in data center revenue in the fourth quarter, which was up 93% on an annual basis. That also surpassed StreetAccount expectations of $33.65 billion. The company’s gaming business, which includes graphics processors for playing 3D games, reported $2.5 billion in sales versus StreetAccount expectations of $3.04 billion. The company announced new graphics cards for consumers during the quarter that share the same Blackwell architecture as the company’s AI chips.

Nvidia said it expected about $43 billion in first-quarter revenue, plus or minus 2%, versus $41.78 billion expected per LSEG estimates. The first-quarter forecast implies year-to-year growth of about 65% from a year earlier, a slowdown from 262% annual growth in the same period a year prior.