Nvidia CEO Forecasts Chip Sales to Double Next Year
NVDA sits 34% above its 52-week low of $164.27.
Summary
CEO Jensen Huang said Nvidia expects to sell twice as many chips next year as this year, a rare volume forecast from the company. The statement, made during a U.K. trip, implies significant unit growth even as revenue is projected to rise about 70% for the next fiscal year. Huang attributed the growth to AI demand, suggesting the increase will be driven by AI GPUs, CPUs, and networking chips rather than gaming hardware. The forecast follows Nvidia's Q2 FY27 revenue doubling to $96.2B and its recent $11.9B acquisition of Hugging Face, reinforcing the company's aggressive expansion in AI infrastructure. While the company did not clarify which chips are included, the volume doubling could reflect higher sales of lower-priced products like stand-alone CPUs and China-market AI chips, alongside premium Vera Rubin server racks. Investors will watch for further details on product mix and supply constraints as Nvidia ramps production of next-generation hardware.
At the time of this announcement, NVDA was trading at $219.32 on NASDAQ in the Technology sector, with a market capitalization of approximately $5.3T. The 52-week trading range was $164.27 to $236.54. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.