Declared by Wall Street to be the world's most important stock, the California-based AI chip-maker led by CEO Jensen Huang saw its share price fall by about three percent in after hours trading.

Even though sales and profit, which hit $16.5 billion in the period, more than doubled, investors showed nervousness that Nvidia's extraordinary growth, spurred by the AI frenzy, may be showing signs of normalization.

The world's biggest tech companies have invested tens of billions of dollars, quarter after quarter, into Nvidia's powerful AI chips and software in order to get their ChatGPT-style AI models up and running.

Microsoft, Google, Meta, Tesla and Amazon all depend on Nvidia technology to train generative AI models and execute the heavy computing workloads needed to deploy the new technology.

Ahead of the latest earnings, Nvidia's share price was up about 160 percent year-to-date and has accounted for a third of the broad-based S&P 500 index's gains this year.

Nvidia stock wavered in July, as investor sentiment hesitated over whether generative AI will be a money making enterprise anytime soon.

But in recent weeks Nvidia's share price has been back on its historic tear, nearing the heights of a few months ago when the company was very briefly the world's most valuable company when measured by stock valuation.

The market had expected the company to post sales at about $28 billion, more than double from a year ago.

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