Nvidia CEO Jensen Huang has dismissed concerns about the slowdown in artificial intelligence (AI) investment, predicting the sector will grow into a multi-trillion-dollar market over the next five years.
Speaking on Wednesday, Huang described AI as the start of a “new industrial revolution,” estimating global spending on AI infrastructure could reach between $3 trillion and $4 trillion by the end of the decade.
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Despite his optimistic forecast, Nvidia shares slipped 1.56% to $178.77 in premarket trading on Thursday after the company issued a weaker-than-expected third-quarter sales outlook. The guidance excluded potential revenue from China, reflecting uncertainty amid ongoing Sino-US trade tensions.
Huang sought to reassure investors unsettled by signs of slowing growth in AI-related stocks. “The AI race is on,” he said, emphasizing that Nvidia’s chips are central to the surge in demand from tech giants and data center operators.
Nvidia continues to benefit from heavy spending by hyperscalers like Microsoft and Amazon, with Huang noting that a single $60 billion data center project could bring the company as much as $35 billion. He also revealed that a customer outside China had purchased $650 million worth of Nvidia’s H20 chip in the latest quarter.
Industry analysts echoed Huang’s view, saying that Big Tech’s aggressive capital spending shows resilience in the AI sector. However, some leaders, including OpenAI CEO Sam Altman, have recently warned that investors may be “overexcited” about AI.
Even so, demand for Nvidia’s high-end Blackwell and Hopper chips remains strong, with orders already stretching into 2026. “Everything is sold out,” Huang said, underlining his belief that the AI boom has only just begun.
