Nvidia forecast higher than expected sales for its current quarter as the semiconductor designer said it expected strong growth in most regions to offset a “significant” drop in sales to China because of recently tightened AI chip rules.

The US group reported record revenues of $18.1bn for the three months to the end of October, up 206 per cent year on year as it continued to ride demand for its high-performance artificial intelligence chips.

In a note to investors, chief financial officer Colette Kress addressed concerns about the impact of new US sanctions on high-performance chip exports to China. The company expected sales to the Asian country to “decline significantly” in the current quarter, she said, but this should be “more than offset by strong growth in other regions”.