Nvidia Chief Executive Jensen Huang has rejected fears of a slowdown in artificial intelligence investment, predicting that AI infrastructure spending could reach between US$3 trillion and US$4 trillion by the end of the decade.
Speaking on Wednesday, Huang aimed to reassure investors concerned about signs of decelerating growth at Nvidia, a company widely regarded as a central player in the global AI boom. Earlier in the day, Nvidia issued a third-quarter revenue forecast that was roughly in line with analysts’ estimates but fell short of the high expectations that have driven its share price up by about one-third this year.
“A new industrial revolution has started. The AI race is on,” Huang said. “We see $3 trillion to $4 trillion in AI infrastructure spend by the end of the decade.”
His comments come as AI-focused stocks show signs of cooling, with industry figures, including OpenAI CEO Sam Altman, cautioning that investors may be “overexcited” about the sector. Despite these warnings, Nvidia remains confident in its position at the forefront of AI chip development.
Strong demand from major technology firms
Nvidia’s growth has been fuelled by strong demand from major technology companies, large data centre operators known as hyperscalers, and interest from China.
“The mega caps are the ones propelling a lot of the capex that Nvidia is benefiting from. But obviously Nvidia still is growing, can sell,” said Matt Orton, head of advisory solutions at Raymond James Investment Management. “If anything, this just highlights that there’s a lot of durability to this (AI) trade… The businesses of these hyperscalers can continue to accelerate, and you’re not seeing any sign of a slowdown being reflected in the results of Nvidia.”
Huang underscored Nvidia’s ability to deliver improved efficiency for customers, enabling them to process more data while using less energy. “The more you buy, the more you grow,” he said. “The buzz is: everything sold out.”
One example of Nvidia’s market reach is a US$650 million order for its H20 reduced-capability chip, designed for the Chinese market, which a customer outside China recently purchased.
Nvidia forecasts continued growth despite market concerns
Huang said that Nvidia expects its revenue opportunities to remain strong, citing an estimated US$600 billion in data centre capital expenditure this year from major clients such as Microsoft and Amazon. For a single data centre costing as much as US$60 billion, Nvidia can secure roughly US$35 billion in revenue, according to Huang.
The company’s third-quarter sales forecast of around US$54 billion is slightly above the US$53.14 billion consensus estimate compiled by LSEG. Nvidia’s second-quarter net income also surpassed Apple’s fiscal third-quarter profit, further strengthening investor confidence.
Looking ahead, Nvidia’s high-end Blackwell chips are already largely allocated based on 2026 forecasts from its biggest customers, while earlier-generation Hopper processors continue to sell rapidly.
“When you have something new, and it’s growing as fast as it is, and with all of the huge capex announcements from the hyperscalers, it’s evidence that we’re in the early stages of the AI boom,” said Thomas Martin, portfolio manager at Globalt Investments.
