LOS ANGELES (AP) — Nvidia’s soaring profit beat Wall Street estimates — shaken by the chipmaker’s dominance that has cemented Nvidia’s place as the poster child of the artificial intelligence boom — but investors seemed less than impressed.

The company reported net income of $16.6 billion. Adjusted for one-time items, net income was $16.95 billion. Revenue rose to $30 billion, up 122 percent year-over-year and 15 percent quarter-over-quarter.

In comparison, S&P 500 companies as a whole are expected to see revenue growth of just 5% for the quarter, according to FactSet. Nevertheless, Nvidia shares fell nearly 4% in after-hours trading.

Ryan Detrick, chief market strategist at the Carson Group, said that despite rising revenues, “the bar seems to have been set just a bit too high this earnings season.”

“Deaths, taxes and NVDA earnings beats are three things you can count on,” Detrick said. “Here’s the problem. The beat was much smaller this time than it has been in the past. Even the forecasts for the future were raised, but again not to the same extent as in previous quarters.”

The company reported adjusted earnings per share of 68 cents per share for the second quarter, up from 27 cents a year earlier. Nvidia expects third-quarter revenue growth to $32.5 billion, plus or minus 2 percent.

Nvidia has made the artificial intelligence sector one of the biggest companies on the stock market as the tech giants continue to invest heavily in the company’s chips and data centers needed to train and run their AI systems.

“People who invest in Nvidia infrastructure are getting an immediate return,” said Jensen Huang, Nvidia founder and CEO, in a call with analysts. “It’s the best investment in infrastructure and computing infrastructure you can make today.”

Demand for generative AI products that can create documents, create images and act as personal assistants has boosted sales of Nvidia’s specialty chips over the past year. In June, Nvidia briefly rose to become the most valuable company in the S&P 500. The company is now worth over $3 trillion.

Nvidia CFO Colette Kress said during the conference call with analysts that the company plans to increase production of its Blackwell AI chips starting in the fourth quarter and continuing through fiscal 2026. Kress said Nvidia expects Blackwell revenue to reach several billion dollars in the fourth quarter, with shipments of its Hopper graphics processing unit (GPU) expected to increase in the second half of fiscal 2025.

In an interview with Bloomberg Television, Huang said the company will “have a great year next year as well.”

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In the first six months of the year, Nvidia’s share price rose nearly 150%. At that point, the stock was trading at just over 100 times the company’s earnings over the previous 12 months. That’s much more expensive than it’s ever been and than the S&P 500 in general. That’s why analysts are warning of a sell-off if Wall Street sees signs that demand for AI is waning.

Dan Ives, an analyst at Wedbush Securities, called the results a “historic, meteoric rise for Nvidia and the godfather of AI, Jensen (Huang).” Investors, Ives said, are picking apart “robust numbers” and trying to find loopholes in them. Although Nvidia expects revenue of about $32.5 billion for the third fiscal quarter, some analysts had expected a slightly higher number, he said.

“I consider that to be hair-splitting,” Ives said. Demand for AI technology is only increasing, he added, echoing Huang’s earlier statements that the world is in the midst of the next industrial revolution.

“These are the most widely watched gains — not just in the technology sector, but in the entire market — in many years,” he said. “Investors tend to overreact to any kind of short-term weakness. But I think this has actually added more fuel to the bull market.”