Jensen Huang Calls Boom AI Still Continues, Despite The Susu Sales Projection

Nvidia CEO Jensen Huang, (photo: x @nvidia)

JAKARTA - Nvidia CEO Jensen Huang on Thursday, August 28 dismissed concerns about the end of a boom in spending on artificial intelligence (AI) chips. He stated that opportunities will develop into a multi-trillion dollar-valued market in the next five years.

Despite Huang's optimistic views on AI demand, the chip designer's shares have decreased. This was triggered by a sluggish third-quarter sales projection, which included no potential revenue from China. Nvidia shares fell nearly 2% in early trading on Thursday.

Not bringing China into its projection highlights the uncertainty caused by US-China trade tensions. This happened even though Nvidia had struck a deal with President Donald Trump for its export license in exchange for 15% of its AI H20 chip sales in China. Huang also pointed out that Nvidia is open to providing a share of sales from a new Blackwell chip for China to the US government if it is allowed to sell it to Beijing.

After reports of its quarterly results, Huang tried to convince investors concerned with indications of a slowdown in growth in the chip company that is the center of AI's investment fever.

The CEO's bullish views contradict recent signs of fatigue on AI-focused stocks as well as comments from industry leaders about investor enthusiasm overheating.

"The new industrial revolution has begun. The AI race has begun," Huang said. "We are seeing AI infrastructure spending of $3 to 4 trillion by the end of the decade."

Huang argued that Nvidia's technological advances allowed customers to process more data using less energy. "The bottom line is: all goods are sold out." For example, a customer outside China bought a $650 million H20 chip aimed at the Chinese market in the last quarter.

In addition to China's problems, demand expectations from tech giants (Big Tech) and data center owners (hyperscaler) have pushed Nvidia's share increase in the last two years. Huang based his estimates partly on data center capital expenditures worth 600 billion US dollars this year from large customers such as Microsoft and Amazon.

Nvidia and Huang see little reason for the AI chip's profit growth to slow down, given their second-quarter net profit even surpassed Apple's technology giant third-quarter profit. Their high-end Blackwell chips have almost entirely been ordered based on forecasts for 2026, while previous generation processors,

Analysts argue that these results demonstrate the durability of the AI trend and that we are still in the early stages of the boom.