Yet that wasn't the only impressive part of the business. Gaming sales, Nvidia's second-largest segment, soared by 30% year over year. And professional visualization, which now includes sales of Nvidia's Spark, which the company calls the world's smallest AI supercomputer, rocketed 26.5% sequentially over Q2.

Nvidia reported quarterly results that handily topped Wall Street expectations, sending the stock sharply higher in after-hours trading.

Nvidia shares have fallen more than 12% since their recent peak on Oct. 29—the day it became the world's first $5 trillion company. It's the 16th time shares have "corrected," dropping 10% or more from a recent high,

Nvidia's stock closed Thursday near session lows, falling 3.2% on the day after being up as much as 5.1% at its peak. The performance marked a continuation of relatively muted post-earnings stock moves for Nvidia.

The S&P 500, a broad measure of stocks, gained 1.5% as trading opened. The tech-heavy Nasdaq jumped 2%, but later backed down slightly from its high. The Dow Jones Industrial Average rallied 600 points, around 0.8%.

Nvidia shares rose about 5% in off-hours trading following the AI chipmaker's earnings on Wednesday. + That would be well above the average price gain for the past eight quarters on the trading day after earnings,

Nvidia’s earnings report crushed analysts’ forecasts and tamped down on the market’s fears of an AI bubble bursting.

US stocks were hammered on Thursday as an abrupt midday reversal in markets followed a blockbuster earnings report from Nvidia and the release of the long-delayed September jobs r