Nvidia CEO Jensen Huang said the artificial intelligence boom is still in its early stages and poised to expand into a multi-trillion-dollar market, even as a subdued sales outlook weighed on the chipmaker’s shares. According to Reuters, Nvidia’s third-quarter revenue forecast slightly beat expectations but failed to excite markets, sending the stock down in premarket trading.
Huang projects multi-trillion AI buildout
Huang described the moment as the start of a “new industrial revolution,” asserting that “the AI race is on.” He said Nvidia sees $3 trillion to $4 trillion in AI infrastructure spending by the end of the decade. He based part of that view on his expectation that data center capital spending will reach about $600 billion this year among major buyers including Microsoft and Amazon. For a data center costing as much as $60 billion, he said Nvidia can capture about $35 billion.
The CEO argued that Nvidia’s technology enables customers to process more data with less energy, adding, “The more you buy, the more you grow,” and “everything sold out.” Demand from Big Tech and hyperscalers remains a key driver, with Nvidia’s high-end Blackwell chips largely spoken for based on 2026 forecasts from its biggest customers. Earlier-generation Hopper processors are also being snapped up.
Market fatigue meets continued demand
The upbeat tone contrasts with recent signs of fatigue across AI-facing stocks. Reuters reported that shares of Nvidia fell 1.56% premarket after its forecast disappointed investors, and that OpenAI’s Sam Altman recently said investors may be “overexcited” about AI. Still, some market voices cited by Reuters highlighted durability in AI-related spending. “The mega caps are the ones propelling a lot of the capex that Nvidia is benefiting from. But obviously Nvidia still is growing, is able to sell,” said Matt Orton of Raymond James Investment Management. Thomas Martin of Globalt Investments said it is “evidence that we’re in the early stages” of the AI boom.
China uncertainty and product momentum
Nvidia’s sales outlook excluded potential revenue from China, reflecting ongoing Sino-U.S. trade uncertainties, Reuters noted. Even so, a customer outside China purchased $650 million worth of Nvidia’s H20 reduced-capability chip aimed at the Chinese market in the latest quarter, the company said. Nvidia also pointed to profit momentum, with second-quarter net income surpassing the fiscal third-quarter profit of Big Tech peer Apple, according to the report.
Huang sought to reassure investors that Nvidia’s AI chip demand remains strong. While the company’s streak of outsized revenue beats has lost some shock value, expectations tied to hyperscaler capex and booked demand for Blackwell suggest continued traction for Nvidia’s data center portfolio.
