US chip giant NVIDIA recorded more than double its revenue last quarter following a massive demand for semiconductors to power constantly emerging AI models.

The success comes as Nvidia’s chief financial officer, Colette Kress, claimed that tighter US curbs on the export of AI chips to China will hurt the chip maker and other US companies. 

Nvidia exceeded the already high predictions of Wall Street in its earnings call on Wednesday, expecting a fiscal third-quarter revenue of around $16bn – as the demand for AI continues to propel the company forward.

Nvidia reported that sales in the current quarter are on track to grow 170% from the year earlier. 

“Despite concerns that we are in some sort of tech bubble, Nvidia once again smashed estimates and delivered a set of results that shows it has no signs of slowing down,” Ben Barringer, equity research analyst at Quilter Cheviot told Verdict

“Nvidia once again smashed estimates and delivered a set of results that shows it has no signs of slowing down,” Barringer added.

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As of right now, Nvidia and other US chip companies are banned from exporting its most in-demand items to China, its high-end graphics processing unit chips. The company continues to sell a less powerful version to China. 

Speaking on a conference call following the earnings report on Wednesday, Kress claimed that any further restrictions will result in a loss of opportunity for the company. 

“Over the long term, restrictions prohibiting the sale of our data center GPUs to China, if implemented, will result in a permanent loss of an opportunity for the US industry to compete and lead in one of the world’s largest markets,” Kress said.

The CFO noted that additional restrictions wouldn’t hurt the company in the short term. 

“Given the strength of demand for our products worldwide, we do not anticipate that additional export restrictions on our data center GPUs, if adopted, would have an immediate material impact to our financial results,” Kress said.

The statement comes after Nvidia’s CEO, Jensen Huang, joined other major AI chip makers in calling for a pause to additional export controls. 

Several reports have given fuel to the possibility that there could soon be further escalated export controls of semiconductors to China, in the latest signs of rising tensions between Washington and Beijing. 

According to research firm GlobalData, China consumes around 40% of semiconductors manufactured globally, but is only 12% self-sufficient.

The Biden administration claim that the restrictions are imperative to protect the US and deter the advancement of China’s military, Bloomberg reported.