Jensen Huang explains why Nvidia will grow an astounding 70% next year
Nvidia CEO Jensen Huang has reiterated his forecast that the chipmaker's revenue will grow by around 70% next year, telling attendees at the Goldman Sachs Communicopia + Technology conference that the company's dominant position across the entire AI industry gives him confidence in that outlook. His comments come amid persistent scepticism about whether Nvidia's extraordinary growth can continue as hyperscalers such as Amazon, Microsoft and Google, AI labs including Anthropic and OpenAI, and rivals like Cerebras and Etched all develop their own chips.
Analysts expect Nvidia to finish its current fiscal year with roughly $400 billion in revenue, meaning 70% growth would take it to around $680 billion. Huang argued that Nvidia's reach extends across the whole AI ecosystem, from suppliers to data centres and start-ups, and that every major AI lab uses its chips, giving the company unique visibility into industry demand. He also pointed to strong sales momentum, including 27% month-on-month growth for one flagship server system, and dismissed concerns over so-called "circular deals" — where Nvidia invests in firms that then buy its products — saying the arrangement returns far more money than it puts in.
- Huang forecasts Nvidia revenue will grow roughly 70% next year
- Current fiscal year revenue expected around $400bn, rising to ~$680bn
- Huang says Nvidia's ecosystem-wide reach lets it predict industry demand
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Nvidia makes the specialised chips that power most of today's artificial intelligence systems, from chatbots to data centres. Its boss, Jensen Huang, has become one of the most closely watched figures in tech because the company's fortunes are seen as a barometer for the wider AI boom. Nvidia's revenue has already grown enormously in recent years as demand for its chips has soared.
A key question hanging over the company is whether that growth can keep going, given big customers such as Amazon, Microsoft and Google are working on their own chips, and newer rivals like Cerebras and Etched are also entering the market. There are also questions about "circular deals", where Nvidia invests money in other AI companies that then use some of that funding to buy Nvidia's products, which some observers worry could inflate the appearance of demand.
Nvidia's scale means its financial results and forecasts are widely seen as a signal of how strong, or fragile, the broader AI industry really is. Any comments from Huang about future growth are therefore scrutinised closely by investors and analysts trying to judge whether the AI spending boom is sustainable.