Nvidia Corp. has reported stellar results for its latest quarter, surpassing market expectations as its revenue more than tripled from the previous year. The company’s revenue for the fiscal fourth quarter reached $22.1 billion, up significantly from $6.05 billion, while its earnings jumped to $12.29 billion compared to $1.41 billion a year ago.

The California-based company has seen a surge in demand for its graphics chips used in artificial intelligence applications. Nvidia’s specialized chips are crucial for various AI technologies, including advanced chatbots like ChatGPT and Google’s Gemini.

Nvidia’s success in AI stems from its early investment in tailoring its technology to AI applications, a strategy initiated by founder and CEO Jensen Huang over a decade ago. Huang recognized the potential of Nvidia’s graphics processing units for AI-related tasks beyond gaming.

Nvidia’s partnership with Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading chipmaker, is vital for producing its chips. TSMC’s recent surge in share price, leading Taiwan’s Taiex benchmark index to a record high, reflects the positive impact of Nvidia’s success on its partners.

The company’s data-center business, offering cloud and AI services, also saw remarkable growth, with revenue reaching $18.40 billion, a five-fold increase from the previous year and exceeding expectations.

Analysts and investors have shown confidence in Nvidia’s future growth, with Morgan Stanley raising its price target on the company’s stock to $750 from $603, citing increased demand for AI chips. Nvidia’s shares rose 6% to $715.31 following the earnings release, highlighting the market’s positive response to the company’s performance.