AI giant Nvidia (NVDA) reported second-quarter earnings after the market closed on Wednesday, beating expectations for both revenue and profit. The current-quarter forecast was also higher than expected.

Nvidia reported adjusted earnings of $0.68 per share on revenue of $30 billion in its fiscal second quarter. Analysts had expected earnings of $0.64 per share and revenue of $28.8 billion. That’s a 122% increase on the top line from a year ago; earnings were up 168% from the year-ago quarter.

The company also gave third-quarter revenue guidance of $32.5 billion, plus or minus 2 percent. Analysts had expected $31.9 billion.

Shares of the chip giant fell about 3.5% in after-hours trading following the results. The stock even fell 6% in immediate reaction to the figures.

The bulk of that revenue came from Nvidia’s all-important data center business, which brought in $26.3 billion in the quarter, compared with Wall Street expectations of $25 billion in revenue. That’s up 154% from the year-ago period, when the segment brought in $10.3 billion.

In a statement, CEO Jensen Huang said expectations for the company’s next-generation Blackwell chip are “incredible.”

CFO Colette Kress said in a statement: “Blackwell production is expected to begin in the fourth quarter and continue into fiscal 2026. In the fourth quarter, we expect to generate billions of dollars in Blackwell revenue.”

Kress’ statement also said that the company “has made a change to the Blackwell GPU mask to improve production yield.”

The company expects shipments of its current Hopper chips to “increase” in the second half of the year.

Nvidia also announced a $50 billion increase in its share repurchase authorization on Wednesday. The company had $7.5 billion left of its existing authorization at the end of the quarter.

Nvidia’s gaming division, previously the company’s breadwinner, saw revenue rise to $2.8 billion, up 16% from the previous year.

According to Reuters, Nvidia is the global leader in AI chip design and software, with 80% to 95% of the market share.

The company is also a major player in the current AI trading landscape on Wall Street, with nearly half of its revenue tied directly to tech giants like Microsoft, Amazon, Google and Meta.

Nvidia’s rivals aren’t resting on their laurels. Earlier this month, AMD announced it was acquiring ZT Systems in a deal valued at $4.9 billion. The move gives AMD more firepower to build AI system servers, something that’s been a major catalyst for Nvidia’s own sales.

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And while it may give AMD a sales boost, it doesn’t mean Nvidia won’t face any major threats to its position as AI king anytime soon.

“There are emerging competitors like AMD that are starting to take a little bit of market share,” Ruben Roy, managing director of Stifel, told Yahoo Finance on Monday. “But if you look at the overall infrastructure spending cycle … which we think will continue to accelerate, Nvidia seems to us to be best positioned to benefit from (spending).”

Email Daniel Howley at [email protected]. Follow him on Twitter at @DanielHowley.

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