TLDR
- Nvidia stock rose as much as 2.8% Thursday, trading around $218
- CEO Jensen Huang said he expects chip sales to roughly double over the coming year
- Nvidia already projects 70% revenue growth for its next fiscal year
- Huawei announced plans to launch two new AI chips next year as China pushes for alternatives
- Huang is expected to attend a Trump-Xi state dinner on September 24
Nvidia stock climbed more than 2% on Thursday to around $218, as CEO Jensen Huang said he expects the company to sell roughly twice as many chips over the next year.
Huang made the comments at an event in Scotland convened by King Charles III, where he pointed to AI expanding into more industries as the driver of that demand.
The move higher came on a strong day for markets overall. The S&P 500 rose 1.1%, the Nasdaq gained 1.6%, and the Dow added 0.7%, as Treasury yields and oil prices eased following the Federal Reserve’s first interest rate hike in three years.
Other tech names also moved up. SpaceX and Amazon each gained around 2%, Microsoft rose 1%, Qualcomm added 2%, and Intel surged 9%.
Huang’s Demand Outlook
Huang’s comments on Thursday build on an already bullish forecast from Nvidia. Last month, the company projected roughly 70% revenue growth for its next fiscal year and said revenue could potentially double if supply is enough to meet demand.
Supply, not demand, is currently Nvidia’s main challenge. The company is working to produce enough AI hardware to keep up with customers.
Nvidia dominates the market for AI accelerators, the chips used to train and run AI models. As more industries adopt AI, demand for those chips grows.
Huang also addressed AI safety at the Scotland event. He said companies need to take responsibility for their technology and ensure AI software is safe before releasing it to customers.
Huawei Steps Up Competition
Nvidia’s strong outlook comes as Huawei moves to chip away at its dominance. The Chinese tech company said Thursday it plans to launch two new AI chips next year.
Huawei has already shipped more than 1,000 AI computing systems to over 370 customers. These systems combine hundreds of chips to increase computing power.
The push is part of China’s broader effort to reduce reliance on US technology. Washington has restricted Chinese companies’ access to Nvidia’s most advanced chips and placed limits on semiconductor equipment available to Chinese chipmakers.
Morgan Stanley estimates China’s AI chip market could reach $67 billion by 2030, with domestic companies taking 86% of that market, up from less than half in 2025.
Huang is also expected to attend a state dinner hosted by President Donald Trump for Chinese President Xi Jinping on September 24, when Xi visits Washington.
AI and technology trade are expected to be topics at that meeting. Huang attended a state dinner in China in May, alongside Elon Musk and former Apple CEO Tim Cook.
Wall Street remains bullish on NVDA. Analysts hold a Strong Buy consensus based on 30 Buy ratings in the past three months, with an average price target of $324.30, implying roughly 48% upside from current levels.
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