Nvidia CEO optimistic about AI chip demand outlook

On August 27, CEO of chip maker Nvidia, Jensen Huang, affirmed that the wave of spending on artificial intelligence (AI) chips has not ended and predicted that the opportunity will expand into a trillion-dollar market within the next 5 years.

However, despite Mr. Huang's optimistic view, Nvidia shares fell 1.56% to $178.77 in pre-market trading on August 28.

The reason for this result is that the company's Q3/2025 revenue forecast did not create as strong an impression as investors expected.

Nvidia posted revenue of $46.7 billion in the second quarter of 2025, up 56% year-over-year and slightly above analysts' expectations of $46 billion. Net income was $26.4 billion, up 59% year-over-year.

Nvidia expects Q3 2025 revenue to reach $54 billion, with a margin of error of less than 2%. This figure does not include H20 chip sales in China.

The revenue outlook does not include potential revenue from the Chinese market, reflecting uncertainty due to US-China trade tensions.

Mr. Huang offered reassurance as investors fretted about signs of slowing growth. His optimism contrasted with recent gloom in the AI stock market and warnings from some tech industry leaders that investors were getting too excited.

“A new industrial revolution has begun. The AI race is on. We forecast spending on AI infrastructure to reach $3 trillion to $4 trillion by the end of the decade,” said Nvidia CEO.

The main driver of Nvidia chip demand comes from large technology corporations, which own and operate massive data centers to provide cloud computing, AI and global digital infrastructure services.

“Megacap companies are driving much of the investment spending that Nvidia is benefiting from,” said Matt Orton, director of advisory solutions at Raymond James Investment Management.

He believes that the durability of the AI investment wave is still very large, as technology "giants" continue to expand their businesses without showing any signs of slowing down in Nvidia's business results.

Nvidia shares have outperformed the broader market by about 10% since the start of the year, but AI stocks have shown signs of cooling. OpenAI CEO Sam Altman recently warned investors that they may be getting “too excited” about AI.

Still, Mr. Huang seems unconcerned, stressing that Nvidia’s technology helps customers process ever-increasing amounts of data with lower power consumption.

Mr. Huang based his forecast on the $600 billion that big customers like Microsoft and Amazon will spend on data centers this year.

According to him, with a data center costing up to 60 billion USD, Nvidia can earn about 35 billion USD.

Nvidia's high-end Blackwell chips are fully booked until 2026, while the previous generation of Hopper chips is still selling well./.

(TTXVN/Vietnam+)

Source: https://www.vietnamplus.vn/ceo-nvidia-lac-quan-ve-trien-vong-nhu-cau-chip-ai-post1058593.vnp