Nvidia beats US restrictions to promote £9bn of chips to China

US chip maker Nvidia is set to sell more than £9billion worth of chips in China this year – despite ongoing curbs from Washington.

The technology giant is expected to deliver more than a million of its new graphics processing chips to the region in 2024.

This is almost twice as many as its rival Huawei is expected to sell, according to Semi Analysis, a chip consultancy.

AI boom: Nvidia is expected to deliver more than a million of its new graphics processing chips to China in 2024 – despite curbs from Washington

Each chip costs between £9,400 and £10,000, which suggests that Nvidia is likely to generate more than £9.4billion in sales.

The bumper figures come despite export controls from the US, which is restricting semiconductor chips being sent to China amid security concerns.

Nvidia, which designs chips used in artificial intelligence, has enjoyed an immense surge in its value over the past year.

The company, whose chips have turbocharged the meteoric rise of artificial intelligence (AI), is now worth more than £2.5trillion.

This is more than the entire FTSE 100 is worth (about £2.1trillion) and makes it the world’s third most valuable company behind Microsoft and Apple.

The group posted revenues of £20billion for the three months to the end of April this year. This was up 262 per cent from the year before and smashed Wall Street estimates.

Chief executive Jensen Huang said demand was ‘so strong’ as he sought to push back against fears that this momentum would be fading any time soon.

Amazon, Google, Facebook-owner Meta and Microsoft have all said they will need to spend more on the chips and data centres required to train and operate their AI systems in the coming months.