Nvidia CFO Colette Kress assuaged analysis anxieties this week over the chipmaker’s troubled $40-billion acquisition of Arm Holdings.

Since announcing the acquisition from Japanese mega-conglomerate SoftBank, Nvidia has faced intense regulatory scrutiny in the U.S., United Kingdom, European Union, and China. And until recently, Nvidia had maintained the deal was on track to close 18 months after it was announced. While the company still has four months before missing that mark, Kress previously warned it could take longer than expected.

Under the terms of the acquisition, Arm will continue to operate out of its headquarters in Cambridge, England, and it will retain its brand, open licensing, and customer neutrality. Nvidia also plans to build an Arm-based supercomputer on Arm’s campus and license many of its own semiconductor technologies via the chip designer’s well-established licensing model.

In an update to investors during the company's third-quarter fiscal 2022 earnings call this week, Kress said the company was actively exploring remedies to any regulatory hurdles placed before them. “Despite these concerns and those raised by some ARM licensees, we continue to believe in the merits and the benefits of the acquisition to all,” she added.

However, GlobalData analysts David Bicknell and Lil Read aren’t so sure.

“With proceedings likely to extend into late 2022 at the earliest, Nvidia should just abandon the deal,” the two wrote in a research note. “We think it's time for Nvidia to move on, and for SoftBank to return Arm to where it found it — the stock market.”

Regulatory hurdles aside, Nvidia ended the third quarter on a high note, posting all time record revenues across the board.

“Strong growth was led by hyperscale customers fueled by continued rapid adoption of Ampere-architecture tensor-core GPUs, both for internal and external workloads,” Kress said, adding Nvidia’s hyperscale revenue doubled over the past year as major cloud providers have scaled out natural language processing and recommendation models.

While not quite as strong as Nvidia’s gaming revenue, which hit $3.22 billion during the quarter, the chipmaker’s data center revenue grew at a faster pace, up 55% year over year to $2.94 billion.

Together the two business units accounted for the lion’s share of total revenue, which topped $7.1 billion, up 50% year over year on net income of $2.4 billion.

Demand for Nvidia’s networking products — acquired with the $6.9 billion purchase of Mellanox in 2019 — outstripped supply, Kress noted.

“We saw momentum toward higher-speed and new-generation products, including ConnectX-5 and ConnectX-6,” Kress said.

Last week Nvidia expanded its networking portfolio with new 400 Gb/s-capable InfiniBand switches and ConnectX and BlueField DPUs.

Looking to the fourth-quarter of fiscal year 2022, Nvidia expects revenue of about $7.4 billion plus or minus 2%.