Nvidia is expected to have more than 85% of the market for generative-AI chips next year, Raymond James analyst Srini Pajjuri said in a note on Monday.

The company has done well even as many other chip-makers wade through a postpandemic downturn in purchases of PCs and smartphones that has only recently begun to reverse.

Regulators in China had inquired about Nvidia’s sales and efforts to supply the Chinese market, Nvidia said in a regulatory filing.

She said she expected sales to those destinations to decline in the current quarter, “though we believe the decline will be more than offset by strong growth in other regions.”

AI chips to about $14.51 billion in its latest quarter from about $3.8 billion a year before.

Nvidia Chief Executive Jensen Huang said the strong growth reflected a transition into a new era of computing and a surge in generative AI

sales more than tripled to $18.1 billion,

reported another quarter of record sales and gave a strong revenue outlook, pointing to red-hot demand for chips that underpin the artificial-intelligence boom.

The petition to federal regulators warned that such practices might foster or exacerbate anxiety, depression, eating disorders or self-harm among children and teenagers.

In particular, the groups asked regulators to prohibit online services from offering unpredictable rewards — a technique that slot machines use — to keep children online.