Key Highlights
- Nvidia shares jumped as high as 2.8% on Thursday, reaching approximately $218
- Jensen Huang projects chip sales to approximately double within the upcoming year
- The company already forecasts 70% revenue expansion for its upcoming fiscal year
- Huawei revealed intentions to introduce two new AI processors in the coming year amid China’s push for tech independence
- Huang is scheduled to participate in a Trump-Xi state dinner on September 24
Shares of Nvidia advanced more than 2% during Thursday’s trading session to approximately $218, following CEO Jensen Huang’s projection that the chipmaker will sell roughly double the volume of processors in the coming year.
The CEO shared these remarks during an event held in Scotland and convened by King Charles III, where he highlighted AI’s expansion across multiple industries as the catalyst for this anticipated demand surge.
The stock’s upward movement occurred during a broadly positive trading day. The S&P 500 climbed 1.1%, the Nasdaq advanced 1.6%, and the Dow Jones increased 0.7%, benefiting from declining Treasury yields and oil prices following the Federal Reserve’s first interest rate adjustment in three years.
Technology stocks broadly participated in the rally. SpaceX and Amazon each advanced approximately 2%, Microsoft increased 1%, Qualcomm rose 2%, and Intel experienced a significant 9% surge.
CEO’s Bullish Demand Forecast
Huang’s Thursday statements reinforce an already optimistic outlook from Nvidia. The company announced last month an expected revenue increase of approximately 70% for its next fiscal year, noting that sales could potentially reach double digits if manufacturing capacity can satisfy market appetite.
Manufacturing capacity, rather than customer interest, represents Nvidia’s primary bottleneck. The organization is striving to manufacture sufficient AI hardware to satisfy client requirements.
Nvidia maintains market leadership in AI accelerators—specialized processors designed for training and operating AI systems. As artificial intelligence adoption spreads across sectors, demand for these specialized chips continues expanding.
At the Scotland gathering, Huang also discussed AI safety concerns. He emphasized that corporations must accept accountability for their innovations and verify AI systems are secure prior to customer deployment.
Huawei Intensifies Rivalry
Nvidia’s positive forecast emerges as Huawei advances efforts to challenge its market position. The Chinese technology giant announced Thursday its intention to debut two new AI processors next year.
Huawei has already delivered over 1,000 AI computing platforms to more than 370 clients. These platforms integrate hundreds of processors to amplify computational capabilities.
This initiative aligns with China’s larger strategy to decrease dependence on American technology. U.S. authorities have limited Chinese firms’ access to Nvidia’s cutting-edge processors and imposed restrictions on semiconductor manufacturing equipment available to Chinese producers.
Morgan Stanley projects China’s AI processor market could achieve $67 billion by 2030, with Chinese companies capturing 86% of that sector, compared to under half in 2025.
Huang is also anticipated to participate in a state dinner organized by President Donald Trump for Chinese President Xi Jinping on September 24, during Xi’s Washington visit.
Artificial intelligence and technology commerce are anticipated topics for that gathering. Huang previously attended a state dinner in China during May, joined by Elon Musk and former Apple CEO Tim Cook.
Wall Street maintains a bullish stance on NVDA. Analysts sustain a Strong Buy consensus rating based on 30 Buy recommendations issued over the past three months, with an average price target of $324.30, suggesting approximately 48% potential upside from present levels.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
