Nvidia Chipmaker reports better than expected income and fiscal revenue for the second quarter.

Shares AI Chip Giant initially slipped after the report.

Sales surged 56% in the quarter to $46.74 billion, about Wall Street’s estimated $46.06 billion, according to LSEG. The company reported adjusted earnings per share of $1.05, which exceeded analysts’ estimates of $1.01 per share.

Data center revenue was $41.1 billion, the second consecutive period underestimated estimates, but it was up 56% from the same period last year.

NVIDIA said it expects revenue for the quarter to be $54 billion, plus or negative 2%, although the figure does not include any H20 shipments to China to China. According to LSEG, analysts expect revenue to be $53.1 billion.

NVIDIA CEO Jensen Huang said in a conference call with investors that AI has made “huge progress” last year and that the construction of AI infrastructure is still in its early stages.

“With the entire AI revolution thriving, with the start of AI competitions, capital expenditures have doubled, doubled each year to $600 billion,” he said. “It has been five years since now and the end of the decade, and $600 billion represents only the top four super ratings.”

Gold expects AI infrastructure spending to be estimated at $3 trillion to $4 trillion by the end of this decade.

“The opportunities ahead are enormous,” he added.

In a note on Thursday, benchmark analysts said NVIDIA’s guidance is “only a modest aspect of street consensus improvement”, but overall, the report shows “stable order and annual growth.”

“We believe that NVIDIA’s results are consistent with its previous goals and are by no means indicating a slowdown in AI interest or investment across the industry,” analysts’ buy rating for NVIDIA stocks is “Nevidia’s Stock.”