Nvidia CEO predicts $1 trillion in revenue from chip orders this year

Wearing his signature black leather jacket, Nvidia CEO Jensen Huang just spent two hours sharing in front of a packed auditorium in San Jose, California, USA. This was the company’s technology event on March 17, and he took the time to talk extensively about the leading vision in the explosion of artificial intelligence (AI).

He stated that he envisions Nvidia continuing to meet the demand for chips powering chatbots like OpenAI’s ChatGPT and Google’s Gemini, while also expanding its operations into the emerging inference processor market.

After an AI tool is trained, inference chips allow this technology to utilize what it has learned and generate responses (such as writing documents, creating images…) more efficiently than chips serving large language models. The 63-year-old billionaire noted that the “inference” field is about to undergo a new development turning point.

“We have reinvented computing, just like the revolution with personal computers and the internet,” Huang declared. He also predicted that Nvidia would achieve chip orders worth $1 trillion by the end of this year. This figure is double his estimate from last year and nearly five times the company’s revenue for 2025.

Thanks to its dominant position in the AI chip market, Nvidia has increased its annual revenue from $27 billion in 2022 to $216 billion last year. This rapid growth has brought the company a market capitalization of $4.5 trillion, up sharply from $1 trillion three years ago.

In fact, Nvidia’s stock has cooled since it became the first company to surpass a $5 trillion market capitalization last October, amid concerns that the AI boom may be overstated.

Meanwhile, analysts forecast that Nvidia’s revenue will exceed $330 billion next year. Furthermore, the company is facing its first serious challenge in the AI chip market as other tech giants like Google and Meta are struggling to develop their own chips.

To support the transition to the “inference” field, Nvidia has signed a multi-billion dollar licensing agreement with chip startup Groq, including hiring top engineers from this startup.

Dan Ives, an analyst from Wedbush Securities, believes that Nvidia will not cede any market share to Google or Meta. He estimates that the market value of this company could exceed $6 trillion or even higher next year.