Nvidia Shares fell 4.63% in U.S. premarket trading on Thursday as the company’s gross margin narrowed slightly in its fiscal second quarter and its revenue beat was overshadowed by increasingly high expectations.

Nvidia on Wednesday reported third-quarter revenue of more than $30 billion, up 122% from a year earlier.

It was the fourth straight quarter of triple-digit revenue growth. But as Nvidia continues its rapid expansion, year-to-year comparisons become more difficult.

Nvidia gave a market-beating revenue forecast for its fiscal third quarter of $32.5 billion, up 80% year-over-year but a slowdown from the June quarter.

Meanwhile, the company said full-year gross margins would be in the “mid-70% range.” Analysts had expected a full-year margin of 76.4%, according to StreetAccount.

However, analysts said Nvidia would have had to beat expectations by a wide margin to see a share price increase after the numbers.

The stock’s pullback on Thursday also comes after a meteoric rally that has seen Nvidia’s shares surge more than 150% so far this year. The stock has risen more than 750% since the start of 2023, one of the biggest beneficiaries of the artificial intelligence boom. Major tech companies have been ramping up investments, buying Nvidia’s graphics processing units to train large AI models.

The current decline in Nvidia’s stock price has also had an impact on shares of semiconductor companies around the world. Major names including memory maker Samsung and chipmaker Taiwan Semiconductor Manufacturing Company fell on Thursday.

Nvidia addressed another concern during its earnings presentation: reported delays in the development of its next-generation Blackwell AI chip.

“In the fourth quarter, we expect to generate billions of dollars in Blackwell revenue,” Nvidia CFO Colette Kress said on a call with analysts.

The company also announced a $50 billion share buyback program.

– CNBC’s Kif Leswing contributed to this report.