Nvidia Shares traded higher on Thursday as investors digested the tech giant’s third-quarter earnings.

The chipmaker’s shares rose 0.7 percent in morning trade, after trading lower in earlier market deals.

Investors were reacting to Nvidia’s latest quarterly results, which beat both the top and bottom lines. Revenue came in at $35.08 billion, up 94% year-over-year and beating LSEG analysts’ forecast of $33.16 billion. Adjusted earnings per share were 81 cents, beating analysts’ expectations.

The broader semiconductor space got a bump from Nvidia getting higher. While Micron Technology increased by 2.4 percent, Qualcomm 1% climbed, Intel increased by 0.9 percent, and AMD rose 0.1 percent.

Nvidia has largely cornered the market for high-powered chips powering the world’s most advanced artificial intelligence models, such as OpenAI’s ChatGPT.

Despite nearly doubling year-over-year sales, Nvidia’s third-quarter results showed a slowdown from previous quarters. Nvidia previously reported growth of 122% in the second quarter, 262% in the first quarter, and 265% in the fourth quarter of 2023.

The problem for Nvidia as a stock is that “insane” GPU demand has become the “bare minimum” the company expects, William deGale, lead portfolio manager at Blue Box Asset Management’s global technology fund, told CNBC. .

“There is a risk … that Nvidia’s current high earnings will begin to erode,” he said. “There’s a lot of risk in that name at the moment. But it’s interesting,” he said.

Darren Nathan, head of equity research at Hargreaves Lansdown, said in emailed comments on Wednesday that the drop in Nvidia’s share price “isn’t even enough of a salve for some investors,” adding that he expects That the stock will bounce back after the market opens.

“NVIDIA has had fantastic returns for shareholders for many years now, and it’s hard to see a big hole in terms of investment right now,” added Nathan.

Analysts are looking forward to the much-anticipated launch of Nvidia’s next-generation chip called Blackwell. On the firm’s earnings call, CEO Jensen Huang said chip demand outstripped supply.

— CNBC’s Kif Leswing contributed to this report.