Tech giant Nvidia posted record revenue and strong profit for the third quarter, beating Wall Street expectations, amid exploding growth in artificial intelligence

Nvidia soothed investors worried about an AI bubble with record sales and robust guidance. "AI is going everywhere," CEO Jensen Huang said.

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

Asian shares have surged after Nvidia reported stronger than expected quarterly earnings, soothing worries that AI-driven stock prices may have shot too high.

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,

The daily timeframe chart shows that the NVIDIA stock price has been in a strong uptrend in the past few years. It recently crossed the important resistance level at $200, bringing its market capitalization to over $5 trillion.

Nvidia spent $12.46 billion to buy back its stock during the three months to Oct. 26. That's up from $9.72 billion in the previous quarter, and more than the $11 billion spent in the same quarter a year ago.

Q4 guidance also exceeded the analyst consensus estimates on the top and bottom lines. Nvidia's report indicates that the outlook for the AI market in general remains robust. Investors' positive reaction is attributable to Q3 revenue and adjusted earnings per share both beating Wall Street's estimates,