Nvidia expects orders worth at least $1 trillion for its AI chips by the end of next year. “I am sure that the demand for computing power will be even higher,” said CEO Jensen Huang at the GTC developer conference. This has increased “a million-fold” within two years and shows no signs of slowing down.
The Sales volume is said to be driven primarily by demand for Nvidia’s high-quality graphics processors (GPUs). However, Huang did not give any further details about his prediction. The forecast presented is well above the chip manufacturer’s estimate of $500 billion by 2026 the latest quarterly figures had called. Huang did not give any further details about his forecast.
The new trillion mark – the equivalent of around 868 billion euros – is a sign of confidence from the most important supplier of semiconductors the AI boom. Big AI developers like the ChatGPT inventor OpenAIGoogle and Meta are investing billions in building data centers for software with artificial intelligence. A large part of this goes into chip systems from Nvidia.
Huang dismisses investor concerns
According to Huang, one of Nvidia’s future focuses will also be on so-called inference. In order to position itself more broadly in this area, Nvidia presented a new AI system in which the computing process will be divided into two steps in the future: Nvidia’s chips translate language into data blocks that can be understood by computers, after which chips from Groq provide an answer in the second step – despite the similarity in name, the group has nothing to do with Elon Musk’s AI Grok.
Huang’s announcements were received positively on the US stock market. Nvidia shares closed 1.6 percent higher after briefly gaining even more significantly. However, some experts and investors doubt that the major investments in AI can be earned back.
Huang is known for dismissing such concerns. Even now he said the problem from AI providers are rather insufficient capacities: every month of delay in expansion costs companies billions in lost sales. Nvidia usually processes the orders over a period of a few years. In the last financial year, the group’s sales rose by almost two thirds to almost 216 billion dollars.