Shares in Nvidia Corp (NASDAQ: NVDA) moved higher overnight after the chip giant’s Chief Executive delivered a major update on the company’s artificial intelligence outlook.
At the close of trade, the Nvidia share price finished 1.65% higher at US$183.22.
The gain came after CEO Jensen Huang outlined the scale of the opportunity ahead for the company’s AI processors.
Here’s the latest information.
Nvidia CEO outlines huge AI revenue opportunity
Speaking at the company’s GTC developer conference in San Jose, Huang said Nvidia now sees at “least US$1 trillion” in potential revenue tied to its latest generation of AI chips.
The projection relates primarily to Nvidia’s new Blackwell and Rubin chip architectures. These are designed for large-scale AI computing and data centre workloads.
According to the presentation, the chips are expected to power the next wave of AI infrastructure. This comes as major technology companies continue investing heavily in data centres and advanced computing systems.
The forecast effectively doubles the US$500 billion opportunity the company previously outlined late last year.
Huang told attendees the scale of demand from hyperscale cloud providers and enterprise customers continues to grow rapidly as AI applications expand.
New AI systems and infrastructure revealed
During the event, Nvidia also introduced new computer systems designed to run AI faster.
One of the key announcements was a new server platform that combines 72 of Nvidia’s next generation Vera Rubin chips with advanced networking and memory technology.
The systems are designed to handle large AI workloads much faster than earlier hardware.
Nvidia said the platform can produce hundreds of millions of AI tokens per second, which means AI models can generate responses more quickly.
These upgrades are designed to support the growing demand for AI inference, which is when trained AI models are used in real-world applications. This includes chatbots, search tools, and other software.
Nvidia remains central to the AI boom
Nvidia has become one of the most important companies in the global AI supply chain.
Its graphics processing units (GPUs) are widely used by technology companies building and operating large language models and other AI tools.
Demand for these chips has surged over the past 2 years as businesses accelerate spending on AI infrastructure.
The company’s most recent quarterly results highlighted the scale of that growth. Nvidia reported revenue of US$68.1 billion for the quarter, representing 73% year-on-year growth.
That rapid expansion has cemented Nvidia’s position as a critical supplier to the world’s largest tech companies.
The post Nvidia CEO reveals massive US$1 trillion AI chip opportunity appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.