Nvidia reported results for the quarter gone by after the bell on Wednesday and while they were mostly ahead of expectations, the company’s guidance for the upcoming quarter left the street wanting for more.

Revenue grew 122% during the quarter to $30 billion in the quarter, which ended on July 28. Analysts were working with an estimate of $28.9 billion. Earnings per Share, excluding certain items stood at $0.68, marginally higher than the $0.64 estimate.

The chipmaker said that revenue for the ongoing quarter would be $32.5 billion. Although that is still slightly higher than the average analyst estimate of $31.9 billion, they went up to as high as $37.9 billion. The tempered outlook disappointed the street, as the stock, which already declined 2% in regular trading, fell as much as 8.5% afterhours.

Revenue from Nvidia’s data center business, which also includes its AI processors, increased by 154% from last year to $26.3 billion and accounted for 88% of the company’s overall sale. $3.7 billion from that came via its networking products.

Nvidia’s gross margin fell to 75.1% from 78.4% in the previous quarter, although it is still higher than the 70.1% it reported during the same quarter last year. For the full year, the company expects gross margins to be in the “mid-70s” range, while analysts were working with a 76.4% estimate.

Microsoft, Alphabet, Meta and Tesla are some of Nvidia’s marquee customers, using its H100 and H200 chips in most of their generative AI applications such as ChatGPT.

The focus has now shifted to Nvidia’s next big offering, the next generation AI chip called Blackwell. There have been delays in the manufacturing of the chip but the management is confident of shipping them in the next quarter.

“In the fourth quarter, we expect to ship several billion dollars in Blackwell revenue,” Nvidia Chief Financial Officer Colette Kress said on a call with analysts.

On the flipside, total shipments for the current-generation chip Hopper, will increase for the next two quarters instead of tapering off.

Analysts have downplayed concerns about delays, noting that the company still enjoys huge demand for its current generation of products. That could help Nvidia cope with any delays without a big financial hit.

Nvidia has also approved an additional $50 billion in buyback of its own shares.

(With Inputs From Agencies.)