Nvidia NVDA reported adjusted fourth-quarter earnings of $1.89 per share on Thursday, which beat the analyst consensus estimate of $1.66 by 13.86%. This is a 136.25% increase over earnings of 80 cents per share from the same period last year.

The company reported quarterly sales of $3.105 billion, which beat the analyst consensus estimate of $2.96 billion by 4.90%. This is a 40.82% increase over sales of $2.205 billion in the same period last year.

"Nvidia RTX ray tracing is reinventing computer graphics, driving powerful adoption across gaming, VR and design markets, while opening new opportunities in rendering and cloud gaming,” said Jensen Huang, founder, and CEO of Nvidia. "Nvidia AI is enabling breakthroughs in language understanding, conversational AI and recommendation engines ― the core algorithms that power the internet today. And new NVIDIA computing applications in 5G, genomics, robotics, and autonomous vehicles enable us to continue important work that has a great impact."

Nvidia's stock traded higher by 7.3% to $290.75 per share at the time of publication. The stock has a 52-week range between $273.48 and $132.60.