Nvidia's Bullish Outlook
At the Goldman Sachs Communicopia + Technology conference on Thursday, Nvidia founder and CEO Jensen Huang laid out an ambitious vision for his company's continued dominance in AI โ and explained why he believes revenues will sustain their record-breaking growth streak through the end of next year.
Defying the Skeptics
There's been relentless speculation about whether Nvidia's momentum will stall as competition intensifies on multiple fronts. Hyperscalers like Amazon, Microsoft, and Google are developing their own AI chips. AI labs such as Anthropic and OpenAI are doing the same. Newly public competitor Cerebras and startups like Etched are also entering the fray.
Huang, however, remains undeterred.
"Most people think Nvidia builds a chip. I mean, you need airplanes to ship what we build," Huang said, noting that the company continues to battle a perception rooted in its early days. Nvidia invented the GPU, which was originally sold largely to consumers to enhance PC gaming. "One GPU now is not $399. It's $8.5 million. That's one GPU, all connected with NVLink, 2 million parts, 250,000 kilowatts. That's a GPU, and we ship thousands of them."
He added that orders for just one product โ a computer system combining 36 Grace CPUs with 72 Blackwell GPUs โ are currently experiencing 27% month-over-month sales growth.
The 70% Growth Projection
Huang's confidence extends beyond current sales. He reiterated Nvidia's revenue outlook for next year, guidance the company provided last month when it reported yet another record-breaking quarter. That's when he first stated revenue could grow by 70% next year.
"I think we could grow 70% year over year. We're confident about that," Huang said again on Thursday. Analysts expect the company to close its current fiscal year at approximately $400 billion in revenue. Seventy percent growth would put next year's figure at around $680 billion.
Why Huang Is Confident
Huang attributes his confidence to Nvidia's deep integration across every sector of AI โ a position he believes gives him visibility into the future.
"Nvidia runs every model. Every single lab can use us," the CEO said, citing models from Anthropic, OpenAI, and Google, as well as open-weight offerings. "We are a foundational platform of the AI ecosystem, foundational platform of the AI industry."
Nvidia's reach extends from its suppliers โ such as memory chip makers โ all the way to data center projects and startups.
"We're tracking every single gigawatt of land, power, shell around the world. Literally everything on the planet," he said, referring to the shell of a data center building before it's outfitted with computers.
"Just think about all my partners. How many neoclouds are reporting back to us? How many OEMs are reporting back to us? How many clouds are reporting back to us? How many AI-native companies are reporting back to us? We're working with everybody, and so we kind of know where everything is," he said.
via TechCrunch AI