Nvidia reported Q4 revenue of $39.33 billion, up 78% year over year and 12% higher than revenue generated in the previous quarter. This result topped the company's previous guidance of $37.5 billion. It also exceeded the average estimate of $38.05 billion among analysts surveyed by LSEG.

Gil Luria of DA Davidson highlighted increased competition from China and declining profit margins as concerns for Nvidia.

Nvidia shares moved higher in early Thursday trading following a solid set of quarterly earnings that both underscored its dominance in the AI investment thesis and raised questions over the impact of ramping production of its top-of-the-line processors.