Hassan Khan
San Francisco, Aug 27 (Reuters) Nvidia CEO Jensen Huang on Wednesday reassured investors that the AI chip boom is far from slowing down. He predicted that spending on AI infrastructure could reach $3 trillion to $4 trillion over the next five years, highlighting the huge opportunities ahead for the company.
Nvidia’s latest quarterly report showed a third quarter revenue forecast of around $54 billion, slightly above analyst expectations but lower than some of the very high predictions that had pushed the stock up nearly 30% this year. Despite this, Huang remained optimistic about the company’s growth prospects.
Read More: Nvidia and AMD Agree to Give U.S. Government 15% of China Chip Sales in Unusual Agreement
“You get bigger as more you purchase,” Huang stated. He emphasized that Nvidia’s chips help customers process more data while using less energy, keeping demand strong across the board.
Some investors have worried that excitement around AI may be overhyped. Sam Altman, CEO of OpenAI, just issued a warning that the marketplace could be “overexcited” about the innovation. Yet Huang pointed to massive investments by companies like Microsoft and Amazon, which are expected to spend $600 billion on data centers this year. For a single $60 billion project, Nvidia could earn about $35 billion in revenue, he added.
See More: Huawei’s New AI Chip: China’s Power Move Against Nvidia
Nvidia’s advanced Blackwell chips are already fully booked by major clients through 2026, and even its earlier Hopper processors continue to sell quickly. In the latest quarter, a customer outside China purchased $650 million worth of H20 chips, originally intended for the Chinese market.
Nvidia’s strong performance is evident in its second quarter net income, which exceeded Apple’s fiscal third quarter profit, demonstrating the company’s leadership in AI hardware.
Experts say this reflects only the beginning of the AI surge. “With all the investment announcements from big tech, it’s clear we are in the early stages of the AI boom,” said Thomas Martin, a portfolio manager at Globalt Investments.
Huang’s message was clear: The AI revolution is accelerating, and Nvidia is at the heart of it.
