Nvidia’s Huang Expects to Sell Twice as Many Chips Next Year
Nvidia (read more here) chief executive Jensen Huang told reporters at King Charles III’s AI summit in Scotland that he expects to sell twice as many chips in the coming year. Huang attributed this growth to AI's expansion across industries, according to Bloomberg.
This expectation surpasses Nvidia's own revenue growth guidance of 70%, with a doubling described as dependent on supply. Last month, Nvidia forecast $108B in revenue for its next fiscal year, up from $96.2B in the quarter ending July 26th.
The company's success hinges on overcoming production constraints. Europe's planned AI gigafactories, with a combined budget of around EUR 30B, will further drive demand. Huang noted that these factories require approximately 100,000 chips each, drawing from the same order book.
Construction for the first European AI factory is scheduled to begin in 2027, with operations expected to start in 2028. In the meantime, Nvidia's current orders are substantial, reflecting a surge in demand.
During the summit, Huang also addressed concerns regarding AI regulation, arguing that it should not be treated similarly to social media. He emphasized the importance of ensuring product safety, suggesting that unsafe products should be delayed for further development.
Nvidia shares rose as much as 2.8% in New York, reflecting market optimism about the company's prospects.