Nvidia on Wednesday forecast the AI-fuelled boom in demand for computing power will continue well into next year as the $5tn chip giant reported another quarter of strong sales. The world’s most valuable company reported better than expected revenue of $96.2bn for the quarter to the end of July and forecast sales of about $108bn for the current quarter, beating Wall Street estimates of $104bn.

Chief financial officer Colette Kress said she expects strong growth to continue, forecasting a 70 per cent rise in sales next year. She said customer demand was set to double but revenue would be limited by supply constraints. The projection, along with the announcement that Amazon Web Services has agreed to start deploying an additional 2mn of Nvidia’s latest GPUs starting this quarter, boosted the shares 4 per cent in after-hours trading.

Data centre revenue was $89bn last quarter, up 117 per cent year-on-year. Chief executive Jensen Huang emphasized the increasing number of companies beyond Open AI that were contributing to demand. Net income rose to $59.7bn, while gross margin was 75 per cent, but Nvidia expects about 74 per cent for the current quarter, slightly below analysts’ expectations.

Nvidia, like other tech giants including Apple, is dealing with higher costs from a memory chip shortage. Commitments with suppliers increased to $279bn from $119bn. Huang faces scrutiny over deploying Nvidia’s balance sheet to help customers, including a $500bn funding package with Wall Street groups. Profits were boosted by paper gains, including a stake in Space X. Nvidia remains largely frozen out of China’s market.