NVIDIA Corporation (NASDAQ: NVDA) in the third quarter of FY 17 has posted better than expected results due to a higher demand for graphics chips used in gaming and data centers, and the rapid adoption of its new Volta chips for AI and driverless cars. Therefore, NVDA has attributed the growth to the May launch of its Volta chips as part of its Tesla V100 data center graphic processing unit (GPU) that will power systems ranging from artificial intelligence (AI) to driverless cars. Further, the shipments of the Tesla V100 GPU began in second quarter, has ramped significantly in the third quarter driven primarily by demand from cloud service providers and high-performance computing.

NVDA in the third quarter of FY 17 has reported the adjusted earnings per share of $1.33, beating the analysts’ estimates for the adjusted earnings per share of 94 cents. The company had reported the adjusted revenue growth of 31.5 percent to $2.64 billion in the third quarter of FY 17, beating the analysts’ estimates for revenue of $2.36 billion.

The revenue from the datacenter business, NVDA’s second-biggest revenue contributor, grew to $501 million, beating analysts’ estimate of $474.2 million, according to Thomson Reuters. NVDA’s datacenter business, which caters to clients such as Amazon.com Inc’s Amazon Web Services and Microsoft Corp’s Azure, was a point of concern after a disappointing last quarter. The revenue from NVDA’s automotive business grew 13.3 percent to $144 million, falling shy of estimates of $149.8 million. NVDA’s gaming revenue has increased 25.5 percent to $1.56 billion, accounting for nearly 60 percent of total revenue. That also beat analysts average estimate of $1.31 billion

Moreover, NVDA has played down a recent announcement by bitter rivals Advanced Micro Devices Inc and Intel to partner to take on Nvidia in graphic chips for PCs.

The company expects fourth-quarter revenue of $2.65 billion, plus or minus 2 percent, which translates to a range of $2.60 billion to $2.70 billion. The analysts were expecting $2.44 billion.

Additionally, NVDA has raised the quarterly dividend from 7 percent to 15 cents per share and Nvidia plans to return $1.25 billion to shareholders in FY19.

NVDA stock has risen 215.6% in a year (source: Google Finance). At least 14 analysts raised their price target on the stock. SunTrust Robinson analysts were the most bullish with a price target of $253. Nomura has raised its target to $190 from $110. Out of 37 brokerages covering the stock, 20 have a “buy” or higher rating; 14 on “hold” and 3 on “sell” or lower.