Nvidia (NASDAQ: NVDA) earned $2.91 per share on an adjusted basis in the third quarter to easily top $2.57 per share expected from the market’s analysts. Revenue was reported at $4.73 billion, again higher than $4.41 billion expected from the Street.

Sales surged 57%, led by a rise of 146% of the compute and networking segment, while the company’s graphics segment gained 25% from last year to $2.79 billion. Revenue in the gaming sector erupted 37% from $2.27 billion reported a year ago.

“NVIDIA is firing on all cylinders, achieving record revenues in Gaming, Data Center and overall,” said Jensen Huang, founder and CEO of NVIDIA.

“We are continuing to raise the bar with NVIDIA AI. Our A100 compute platform is ramping fast, with the top cloud companies deploying it globally. We swept the industry AI inference benchmark, and our customers are moving some of the world’s most popular AI services into production, powered by NVIDIA technology.”

As for the current quarter, Nvidia said that it expects revenue of $4.8 billion, higher than the Street’s $4.42 billion.

Still, shares slipped about 2% in after-hours trading after the tech giant warned that revenue from its data center segment is expected to in the current quarter.

Rosenblatt analyst Hans Mosesmann described the last quarter’s results as “impressive”. He reiterated a “Buy” rating and raised the price target to $650.00 per share from prior $600.00.

“We see NVDA as the best managed and strategically positioned semiconductor company with secular growth prospects driven by AI, with a model that is shifting more and more towards a soft IP one that we see increasing valuation considerations accordingly,” Mosesmann wrote in today’s note.

Similarly, Mizuho’s Vijay Rakesh hiked the price objective to $605.00 from $575.00 after witnessing “strong” quarterly results.

Rakesh says that NVDA is still an attractive asset despite a “steep” valuation.

“While NVDA's valuations are steep, we believe improving PCs, AI deep learning and inferencing markets, gaming trends, automotive and datacenter position it for upside to estimates. NVDA is also well positioned for the growing machine learning, deep learning, and AI markets driving 10-11x performance versus CPUs in our view.”

He believes that “continued strong gaming and AI/data center leadership position NVDA well into 2021.”