Nvidia smashes revenue forecasts, raises China concerns

The news: Chip designer Nvidia has reported quarterly results that smashed analysts' expectations.

The numbers: California-based Nvidia reported revenue for the third quarter of $US18.12 billion ($27.72 billion), up 34% from the previous quarter. This soared past market expectations of $US16.18 billion, while the company said it expected its revenue to be $US20 billion, plus or minus 2%, for the fourth quarter. Nvidia saw shares slip about 1% in after-hours trading following the results, having rise more than 240% this year.

The context: Nvidia has said it expects supply for its AI chips to improve each quarter, however, an uncertain outlook for China sales has seen share prices fluctuate. While demand for AI servers has boomed due to their use in powering products like OpenAI's ChatGPT, the market for AI chips is restricted by US export controls on what Nvidia can sell to China.