Nvidia (NVDA.O) CEO Jensen Huang affirmed a bright future for artificial intelligence, announcing a series of new partnerships and ambitious revenue projections. Speaking at a company event in Washington, D.C., Huang stated that the company's latest chips, specifically the flagship AI accelerators “Blackwell” and its updated model “Rubin,” would propel sales to unprecedented levels by 2026.
The event marked Nvidia’s first GTC conference in the U.S. capital, highlighting the company’s expanding network of collaborations across industries. Nvidia is currently working with prominent companies such as Uber, Palantir, and CrowdStrike to ensure its technologies remain at the core of the AI revolution. Additionally, the company unveiled a new system to connect quantum computers with AI chips.
Nvidia’s ambitious plans reflect its growing global vision. The company intends to invest €1 billion (approximately $1.2 billion) in Germany, in collaboration with Deutsche Telekom, to build a data center. It has also recently finalized an investment agreement with Nokia. Huang is scheduled to visit South Korea this week, where he is expected to announce new partnerships with Samsung Electronics and Hyundai Motor Group.
Addressing thousands of attendees at the convention center just blocks from the White House, Huang stated, “We have reached an inflection point in a virtuous cycle. It’s quite wonderful.” He also emphasized that the company is contributing to President Trump’s economic agenda to bolster manufacturing in the United States.
However, the primary focus remains on the AI industry reaching a “tipping point.” Huang noted that AI models are now powerful enough for customers to willingly pay for them, thereby justifying the significant investment in building computing infrastructure.
This statement helped alleviate market concerns about an AI investment bubble, leading Nvidia's stock to surge by 5% on Tuesday, closing at a record high of $201.03.
In an interview, Huang stated, “I don’t think we’re in an AI bubble. We are using the various AI models, we are paying for those services, and we are happy to pay for them.”
Nvidia anticipates that shipments of its latest generation of chips will reach 20 million units, compared to just 4 million units sold of the previous generation “Hopper” throughout its lifecycle.
As the world’s highest-valued company, Nvidia is undoubtedly benefiting from the AI computing power wave. However, its primary revenue still relies on a handful of large data center clients, such as Microsoft, Amazon, and Google. This three-day event in Washington aims to attract a broader customer base.
While Nvidia remains dominant in the AI acceleration chip market, competition is intensifying. AMD (AMD.O) and Broadcom (AVGO.O) are accelerating their entry into the field, while companies, including ChatGPT developer OpenAI, are seeking to develop their own chips. Mobile chip giant Qualcomm (QCOM.O) also announced this week that it would enter the AI accelerator market.
AMD’s stock has more than doubled this year, indicating that investors are optimistic about it becoming a major competitor to Nvidia. In contrast, Nvidia's stock has risen by only 43% as of Monday.
Additionally, there are concerns that the cost of building AI infrastructure is exceeding its actual economic benefits. In response, Huang and his peers insist that AI will reshape the global economy, and the current investment in computing power is worthwhile.
Nvidia's speech to the Washington audience was more nationalistic, consistently emphasizing the company's role as a representative of American technology and its efforts to support the return of manufacturing to the homeland. Huang even concluded his speech with Trump's slogan, thanking the audience for “making America great again.”
Meanwhile, he has also signed agreements in Europe and other regions to solidify Nvidia’s position as a key supplier to countries building “sovereign AI systems,” i.e., AI infrastructure that does not rely on American tech giants.
However, one unresolved question remains: Nvidia, headquartered in Santa Clara, California, is still seeking assistance from the White House and Congress to resume exporting AI chips to the Chinese market. Export restrictions have cost the company billions of dollars in revenue.
Huang clarified that his revenue projections for Blackwell and Rubin chips do not include sales from China.
In a surprise appearance before the formal speech began, Huang revealed that he would meet with Trump on the sidelines of the Asia-Pacific Economic Cooperation summit in Seoul.
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