Arm Holdings recorded 27% growth in revenue in its fiscal second quarter, as artificial intelligence demand fuels growth.

The semiconductor company posted a profit of $130 million, or 12 cents a share, compared with $238 million, or 22 cents a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were 52 cents, ahead of the 48 cents anticipated by analysts, according to FactSet.

Revenue rose 27% to $1.44 billion. Analysts surveyed by FactSet forecast revenue of $1.38 billion.

AI is driving strong demand for compute across cloud, devices and autonomous systems, Arm said. The intellectual property business, where partners buy Arm technology and deploy Arm-based silicon; and the new silicon business, which includes Arm CPUs; are both driving growth.

Arm is also gaining market share across the data center sector, as AI developers look for power efficiency and performance. Data center royalties doubled year over year.

In the current third quarter, Arm expects revenue of $1.54 billion, plus or minus $50 million. That would be ahead of the $1.52 billion that Wall Street is projecting.

The company anticipates 56 cents a share, plus or minus 4 cents a share, in adjusted earnings for the third quarter. Analysts are forecasting 55 cents a share.