The boom in artificial intelligence is keeping chip company Nvidia's business running at full speed. In the last quarter, sales of a good $18 billion were three times as high as the year before. Analysts had expected an average of $2 billion less in sales.
Profits shot up from $680 million a year ago to $9.2 billion (8.4 billion euros), as Nvidia announced after the US stock market closed on Tuesday.
For the fourth quarter, which began at the end of October, the group forecast sales of $20 billion - also over $2 billion more than market expectations.
Delivery restrictions for exports to China
At the same time, Nvidia admitted that business in China would decline “significantly” under the pressure of expanded delivery restrictions. Chinese companies were among big buyers of Nvidia's AI chips. A few weeks ago, the US government extended the restrictions on exports to China to include Nvidia technology previously sold there. Nvidia emphasized that business in other countries will more than offset the decline in China.
The Nvidia share initially lost around four percent in after-hours trading, but the price losses later fell significantly.
Announcement from Nvidia