Nvidia's CEO, Jensen Huang, has downplayed fears about a slowdown in AI chip demand, estimating that AI infrastructure expenditures could reach between $3 to $4 trillion by 2030. Huang's comments come as there are growing signs of slowing growth in the AI market, and some industry leaders are exercising caution. Huang has dubbed the AI boom the start of a new industrial revolution and has said that the vast majority of AI expenditure is still very early in its development cycle. Huang reports continued strong sales for the very high end of the Blackwell and earlier generation Hopper-based chips, as well as a non-Chinese customer purchasing H20 chips for $650 million.
Despite Nvidia meeting analyst expectations for Q3 revenue, as well as falling short of some high expectations, Huang is resolutely upbeat. He noted that major technology players and hyperscalers that are data center operators are still spending a significant amount of capital to develop AI infrastructure. This demand is great news for Nvidia's central role in powering the world's AI ecosystem.
Huang estimated that Nvidia would share $35 billion from a planned $60 billion data center build-out, establishing the company as key player in the AI market. He noted that the market has been bumpy lately, but he stressed the AI boom isn't over, especially during a time when Nvidia could still reap benefits from more infrastructure spending on AI going forward.
