Nvidia doubled its quarterly revenue to $96 billion and crushes estimates—CEO Jensen Huang says demand is accelerating

Nvidia doubled its revenue and profit year-over-year in its second quarter, and forecast sales in the current quarter that topped analyst estimates, as red-hot demand for its AI chips continues to bolster the company’s fortunes.

Revenue in the three months ended July 26 totaled $96.2 billion, up 18% over last quarter and 106% from the year-ago period, the company reported Wednesday—crushing analyst estimates of $92.2 billion. For the quarter currently underway, Nvidia guided to revenue of $91 billion plus or minus 2%, outpacing the average analyst expectation of $103.9 billion.

“AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” said Jensen Huang , founder and CEO of Nvidia in a statement. “And demand is accelerating,” he said. In after-hours trading, NVDA was flat after the price tumbled 1.6% during the day.

Data center revenue, the overwhelming majority of Nvidia’s AI business, clocked in at $89 billion, compared to analyst estimates of $85.7 billion. Last quarter, the data center segment produced $75.2 billion in revenue, up 92% from the year prior when revenue was $39.1 billion. Within the data center business, Nvidia reported $48.7 billion in hyperscale revenue and $40.3 billion in AI clouds, industrial, and enterprise (ACIE) revenue, a breakdown the company adopted to make large cloud customers distinct from AI-native clouds, sovereign AI, and on-premises enterprise.

Nvidia reported non-GAAP earnings of $2.22 per diluted share. Analysts had expected $2.06 to $2.09. Last quarter, Nvidia earned $1.87 per share as a non-GAAP figure and $2.39 on a GAAP basis. The company began including stock-based compensation in its non-GAAP results, which makes direct comparisons to previous fiscal years less of an apples-to-apples distinction.

This story was originally featured on Fortune.com