Jensen Huang Declares 'A New Industrial Revolution Has Started': Sees 100x To 1000x Compute Demand Surge — $3–$4 Trillion 'Opportunity' For Nvidia
NVIDIA CEO Jensen Huang announced a transformative vision for AI, describing it as a 'new industrial revolution' during the company's Q2 earnings call. He highlighted a potential surge in computing demand, estimating a $3 to $4 trillion opportunity for NVIDIA over the next five years. Huang dismissed competitive pressures from custom AI chips, asserting NVIDIA's dominance in full-stack AI solutions. The company reported $46.74 billion in revenue, a 56% year-over-year increase, and earnings of $1.05 per share, surpassing estimates. Despite a slight drop in stock price, NVIDIA remains strong in momentum and growth.
Chipmaker NVIDIA Corp.’s NVDA CEO, Jensen Huang, announced an optimistic vision for the future of artificial intelligence during the company’s second-quarter earnings call on Wednesday.
‘A New Industrial Revolution’
During the call, Huang framed AI as “a new industrial revolution,” highlighting its transformative impact on the global economy.
This revolution, he says, comes with a surge in computing demand, with “reasoning, agentic AI models” requiring “100 times, a thousand times, and potentially even more,” in computing resources relative to the “one-shot” chatbots that only generated answers based on prompts.
“Where chatbots used to be one-shot, you give it a prompt, and it would generate the answer. Now the AI does research. It thinks and does a plan,” he says.
He says this demand can lead to a multi-trillion-dollar opportunity for Nvidia and its products. “Over the next five years, we're gonna scale into with Blackwell, with Rubin, and follow-ons to scale into effectively a $3 to $4 trillion AI infrastructure opportunity.”
He also noted that the top four hyperscalers have already doubled their capital expenditures to $600 billion annually, and NVIDIA's share of gigawatt-scale AI factories is about 35%.
Dimisses Competitive Pressures
Huang dismissed concerns of competition from custom AI chips, saying that GPUs will not be displaced in the stack, while emphasizing Nvidia’s full-stack solutions, with dominance across compute, software, and networking layers. “We're, you know, really a holistic full-stack solution for AI factories.”
Huang concluded the call saying that the opportunity ahead is “immense,” as the “AI race is on,” with this new revolution just getting started.
Nvidia released its second-quarter results on Wednesday, reporting $46.74 billion in revenue, up 56% year-over-year, and ahead of consensus estimates of $46.02 billion. The company posted $1.05 per share in earnings, once again beating Street estimates at $1.01.
Shares of Nvidia were down 0.09% on Wednesday, closing at $181.60, and are down 2.82% after hours. According to Benzinga’s Edge Stock Rankings, the stock scores high on Momentum and Growth, with a favorable price trend in the short, medium and long terms. Click here for deeper insights into the stock, its peers and competitors.
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