Graphics and mobile chip maker Nvidia Corp. has surprised Wall Street watchers with unexpectedly strong results for the second-quarter of its fiscal 2016, and has projected similarly strong numbers for the next quarter as well.

Nvidia posted earnings of $0.34 per diluted share, which is three times the $0.10 per share that Wall Street analysts had been expecting. Overall revenues for the quarter were $1.153 billion, which compares nicely with the $1.01 billion analysts were hoping for.

“Our strong performance in a challenging environment reflects NVIDIA’s success in creating specialized visual computing platforms targeted at important growth markets,” enthused Nvidia CEO Jen-Hsun Huang.

Those “specialized visual computing platforms” Huang is referring to include things like 4K video systems, infotainment systems for cars, virtual reality systems and GPU acceleration for data centers. Nvidia’s main graphics processing chip unit also did well, pulling in $959 million for the quarter, a 4.5 percent increase on the year before.

On the downside, Nvidia’s mobile chip performance underlined exactly why the company has already said it plans to get out of that business, where it’s trailed way behind its competitors. Sales of its mobile Tegra CPUs fell by 7.9 percent, with revenues of just $128 million.

Nvidia’s net income was also down, falling a whopping 81 percent year-on-year to just $26 million, although things aren’t nearly as bad as that sounds for Nvidia had a number of expenses it had to pay off. Those include the writing down of its Icera wireless modem unit, which the company announced it was scrapping last May. That cost the company $103 million in restructuring costs, with another $15 million to $25 million likely to be written down in the third-quarter. Besides that, Nvidia also had to shell out $24 million to fund an ongoing patent litigation suit against Samsung Electronics Co. Ltd., and Qualcomm Inc.

Inspite of these expense, Nvidia CFO Colette Kress told shareholders the company would see strong revenues again in Q3, together with higher gross margins.

Investors seemed to believe her, with the company’s share price jumping by almost 9 percent yesterday.

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