NVIDIA (NVDA) surprised Wall Street analysts early this morning when it reported Q1 results for fiscal year 2024. They were wrong. NVIDIA beat expectations in both its data center and gaming businesses by a wide margin.

It also set a record for NVIDIA, with its shares surging nearly 30% in after-hours trading, briefly approaching the $390 mark,Its market cap has risen from more than $750 billion to $960 billion, and it is expected to become the seventh company to surpass $1 trillion when the market opens today.

NVIDIA's stock has doubled this year, and the inventory squeeze and sales slump that followed last year's card crash have been wiped out this year.

NVIDIA's Q1 revenue was $7.192 billion, down 13% year-over-year, but up 19% sequentially, well above expectations of $6.37 billion to $6.63 billion.

Data center revenue was $4.28 billion, up 14% year-over-year and 18% sequentially.

A better performance in the data center segment is in line with the psychology of the market, but the gaming business was also much better than expected this time around, with $2.24 billion in revenue up 22% sequentially, though down 38% year-over-year.

NVIDIA beat consensus estimates of $1.98 billion in revenue by 13.1 percent.

The decline in games is still largely due to the macroeconomic slowdown,But NVIDIA also said in its earnings call that sales of its RTX 40 series graphics cards for desktops and laptops were driving growth.

Last quarter, NVIDIA released its RTX 4070 graphics card at $4,799, which many gamers thought was too high and the tech press questioned, but it doesn't seem to have caused the RTX 40 card to fail to sell.

In recent days, NVIDIA has also launched the RTX 4060 Ti and RTX 4060 series of graphics cards, starting at $3,199 and $2,399. There are also some people who are not happy about the price, but the next quarter's earnings report is likely to be a full turnaround in the gaming business.