Nvidia exceeded Wall Street’s expectations as it closed out 2024, achieving stunning sales and profit growth — and much of Silicon Valley is likely breathing a sigh of relief at what the results say about the artificial intelligence industry.

While Nvidia delivered a surge in quarterly revenue, it said first-quarter margin would tighten as it ramps production of its new flagship AI chips.

Nvidia reported its fourth-quarter results after Wednesday's closing bell. Investors and analysts have focused on early sales of the company's new Blackwell line.

Wall Street took a dim view of Nvidia's quarterly forecast on Thursday with investors pushing the stock down more than 8%, piling pressure on the "Magnificent Seven" stocks that have garnered market skepticism in the last three months.