Chief executive Jensen Huang says surging demand for artificial intelligence tools could drive Nvidia’s sales towards $1tn within two years.
Nvidia has said demand for artificial intelligence could help drive up to $1tn in orders by 2027, as it unveiled a new generation of chips and technologies.
ADVERTISEMENT
ADVERTISEMENT
Speaking at the company’s annual GTC developer conference, chief executive Jensen Huang said demand for computing power continued to accelerate.
Nvidia shares were up 0.3% tin pre-market trading on Tuesday following the announcements.
The company introduced a range of new products, including semiconductors built using technology from start-up Groq. It also outlined plans to develop chips for use in space-based data centres.
Nvidia said its latest platforms would allow artificial intelligence systems to operate in orbit, supporting geospatial analysis and autonomous space operations.
The company has been a major beneficiary of the boom in AI, with revenues rising from $27bn in 2022 to $216bn last year, helping lift its market value to about $4.5tn.
However, its shares have cooled in recent months after briefly surpassing a $5tn valuation last October, amid concerns that enthusiasm for AI may be overstated.
Analysts say Nvidia must now convince investors that its rapid growth can be sustained, even as competition intensifies.
Technology companies including Google and Meta Platforms are developing their own AI chips, while US export restrictions have limited Nvidia’s ability to sell advanced semiconductors in China.
Despite those challenges, demand for Nvidia’s latest Blackwell and Rubin chips remains strong.
“This is just a white-knuckle period for the technology industry,” said Dan Ives.
Nvidia is also expanding into so-called “inference” chips, which allow AI systems to generate responses more efficiently after training, powering tools such as ChatGPT and Gemini.
“The inference inflection has arrived,” Huang said.
To help navigate its transition into the inference field, Nvidia struck a multi-billion dollar licensing deal with market specialist Groq that included the hiring of that startup's top engineers.
"Nvidia isn't going to cede any market share to Google or Meta," said Ives, who believes Nvidia's market value will eclipse $6 trillion during the next year or so.
