Nvidia shares climbed more than 2% on Thursday after CEO Jensen Huang said the company expects to sell roughly twice as many chips over the coming year, reinforcing the AI infrastructure demand narrative and helping semiconductor stocks extend a rebound. Nvidia stock traded around $218.47 in premarket action, adding to a recovery after chip stocks sold off earlier in the week on concerns about slower AI development.
Speaking at an AI event in Scotland convened by King Charles III, Huang pointed to continued demand for computing infrastructure powering AI models and applications. The broader market also advanced: the Nasdaq Composite rose 1.6%, the S&P 500 gained 1.1%, and the Dow Jones Industrial Average added 0.7%.
The upbeat forecast follows Nvidia's strong fiscal second-quarter results, when revenue reached $96.2 billion, up 106% year over year, and Data Center revenue surged 117% to $89 billion. Nvidia guided for approximately $108 billion in fiscal third-quarter revenue. Huang has previously projected about 70% revenue growth next year, and the new chip volume comment suggests physical hardware expansion could outpace that revenue growth.
Investors remain focused on supply constraints including memory availability, advanced chip manufacturing, packaging capacity, electricity and data-center construction. Nvidia has cited a large pipeline for its Blackwell and next-generation Vera Rubin platforms. AWS plans to deploy 2 million additional Nvidia GPUs across its infrastructure in 2027 and 2028, underscoring the scale of AI investment.
Meanwhile, Huawei said it plans to launch two new AI chips next year and has already shipped more than 1,000 AI computing systems to over 370 customers. Huang is also expected to attend a state dinner hosted by President Donald Trump for Chinese President Xi Jinping on September 24, with AI among the expected topics. Morgan Stanley estimates China's AI chip market could reach $67 billion by 2030, with domestic companies accounting for 86%.
