Nvidia CEO Jensen Huang downplayed concerns about a slowdown in artificial intelligence spending after the company issued a tepid third-quarter sales forecast that excluded potential revenue from China. Shares fell nearly 2% in early Thursday trading, but Huang said the “AI race” is accelerating and projected multi-trillion-dollar infrastructure demand through the end of the decade.
Huang’s outlook and market reaction
According to Reuters, Nvidia’s revenue guidance slightly beat expectations but did not galvanize markets. Huang nonetheless framed the environment as the early stages of an industrial shift, saying, “A new industrial revolution has started. The AI race is on,” and estimating $3 trillion to $4 trillion in AI infrastructure spending by decade’s end.
The stock’s dip followed signals of moderating growth and a broader bout of fatigue in AI-focused equities. Reuters noted that OpenAI CEO Sam Altman recently cautioned investors may be “overexcited” about AI, though Huang said customer demand remains intense: “The buzz is: everything sold out.” The company said a non-China customer purchased $650 million worth of its H20 chips in the latest quarter.
Big Tech capex and Nvidia’s positioning
Huang cited data center capital spending of about $600 billion this year by major customers including Microsoft and Amazon. For a data center costing as much as $60 billion, he said Nvidia could capture roughly $35 billion. Nvidia’s next-generation Blackwell chips are largely spoken for based on 2026 forecasts from top buyers, and its prior-generation Hopper processors continue to see strong uptake.
China uncertainty and licensing path
Excluding China from guidance underscored ongoing trade uncertainty, Reuters reported. Nvidia previously struck a deal with President Donald Trump for export licenses in exchange for 15% of China sales of its H20 AI chips. Huang also indicated Nvidia would be open to providing the U.S. government a share of sales from new Blackwell chips destined for China if permitted to sell them there, according to a Fox Business reporter’s post cited by Reuters.
Analysts quoted by Reuters pointed to durable demand from hyperscalers driving Nvidia’s trajectory. Portfolio manager Thomas Martin said large capex announcements are evidence the industry is still in the early phase of the AI boom. Despite near-term market jitters, Nvidia’s leadership emphasized efficiency gains that allow customers to process more data with less energy, reinforcing its case for sustained demand.
