Nvidia’s recent quarterly performance exceeded Wall Street expectations, driven by strong demand for its advanced AI chips. The company reported earnings of $58.32 billion, or $2.39 per share, for the February-April period. This marks a significant increase from last year’s $18.78 billion, or 76 cents per share. When excluding one-time items, Nvidia’s earnings stood at $1.76 per share.

Revenue soared by 85%, reaching $81.62 billion, compared to $44.01 billion in the same period last year. Analysts had expected earnings of $1.75 per share and revenue of $78.91 billion, based on a FactSet poll. Nvidia has consistently exceeded analyst projections since unveiling its high-end AI chips three years ago. These chips are now considered vital components for AI development.

The buildout of AI factories—the largest infrastructure expansion in human history—is accelerating at extraordinary speed, said CEO Jensen Huang in a statement.

Nvidia’s operating expenses rose by 49% to $7.75 billion. Despite this, the company forecasts revenue of about $91 billion for the current quarter, surpassing analysts’ forecast of $87.29 billion.

Many investors remain cautious due to concerns about a slowdown after Nvidia’s remarkable growth. The company’s market value increased from $400 billion at the end of 2022 to $5.4 trillion as of this week. Nvidia’s shares slightly fell after-hours, closing at $222.12, following a regular session close at $223.47.

David Wagner, head of equity at Aptus Capital Advisors, remarked that Nvidia consistently exceeds expectations, particularly in the data center sector. He noted that market reactions do not always align with favorable reports. Additionally, Nvidia plans to return value to shareholders by authorizing an $80 billion stock buyback and raising its quarterly dividend to 25 cents per share from 1 cent.