Nvidia reported record revenue growth in the latest quarter due to high demand for its artificial intelligence (AI) chips. For the three months ending in April, the company’s revenue reached $26 billion, surpassing the projected $24.7 billion. This represents a 262% year-on-year increase, closely following the previous quarter’s 265% rise.

The demand surge, driven by major tech companies’ accelerating investment in AI infrastructure, brought Nvidia’s market capitalization to $2.3 trillion, making it the third most valuable U.S.-listed company. Nvidia has also projected future revenues of $28 billion for the current quarter.

The company’s shares, which have risen by more than 90% since the beginning of the year, increased by 2% in after-hours trading following the announcement. Nvidia also disclosed a 10-for-one stock split and a 150% increase in its quarterly dividend.

Nvidia’s AI data center graphics processing units (GPUs) saw a 427% year-on-year revenue increase for the quarter, contributing significantly to the company’s overall figures. This heightened demand has led to the introduction of Nvidia’s new Blackwell chips, which promise twice the performance of their predecessors and are set to ship later this year.

Despite competition from AMD and Intel, which are also developing AI data center chips, Nvidia continues to dominate, partly due to the widespread adoption of its Cuda software platform. Rivals have yet to see substantial benefits from the AI boom, as highlighted by their recent modest first-quarter results.

Founder and CEO Jensen Huang highlighted Nvidia’s readiness for continued growth, particularly as analysts monitor the impact of the company’s rapid chip evolution on future demand and market leadership.