Nvidia CEO repeats forecast of 70% revenue growth next year

In short: Nvidia CEO Jensen Huang says he expects Nvidia’s revenue to grow about 70% next year, despite more companies trying to build their own AI chips.

What happened

Jensen Huang, Nvidia’s founder and CEO, told attendees at a Goldman Sachs conference that Nvidia is still on track for about 70% revenue growth next year. Nvidia had shared the same outlook last month, and Huang repeated it again this week.

Huang argued that many people misunderstand what Nvidia sells. He said it is not just a single chip, but large computer systems built from many parts. He gave one example of a Nvidia product where many processors are linked together with NVLink (a high-speed connection that helps the chips work together, like a very fast set of roads between factories).

He also said demand is rising for a specific Nvidia system that combines 36 Grace CPUs and 72 Blackwell GPUs. GPUs are the main chips used to run today’s AI models (the software brains behind tools like chatbots). Huang said this system is seeing about 27% month-to-month sales growth.

Huang’s comments come as investors question whether Nvidia’s growth could slow. Big cloud companies like Amazon, Microsoft, and Google, and AI labs like OpenAI and Anthropic, are all working on their own chips.

Huang also pushed back on concerns about “circular” deals, where Nvidia invests in companies that later buy Nvidia hardware. He said Nvidia checks that these companies already have real customer contracts before investing, and said he has seen about $100 billion worth of such contracts.

Why it matters

Nvidia’s chips and systems are a key ingredient in building and running AI, like engines in a fleet of delivery trucks. If Nvidia’s growth stays strong, it suggests AI spending is still climbing, and that the companies building AI services may keep buying expensive computing gear for a while.

Source: TechCrunch AI