Nvidia CEO says AI boom far from over after tepid sales forecast

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CherneyThu, Aug 28, 2025, 5:02 AM 3 min readBy Max A. CherneySAN FRANCISCO (Reuters) -Nvidia CEO Jensen Huang on Wednesday dismissed concern about an end to a spending boom on artificial intelligence chips and said opportunities will expand into a multi-trillion-dollar market over the next five years.Despite Huang's upbeat view on AI demand, shares of the chip designer clocked losses triggered by a tepid third-quarter sales forecast that excluded potential revenue from China. The stock was down nearly 2% at $178.43 in early trading on Thursday.Keeping China out of its forecast underscored the uncertainty caused by Sino-U.S. trade tensions despite Nvidia striking a deal with President Donald Trump for export licenses in exchange for 15% of China sales of its H20 AI chips.Huang on Thursday also indicated that Nvidia would be open to giving the U.S. government a cut of sales from new Blackwell chips for China if it is allowed to sell them to Beijing, a Fox Business reporter said in a post on X.Following the earnings report, Huang had sought to reassure investors rattled by indications of slowing growth at the chipmaker at the center of the investment frenzy.The founder and CEO's bullish outlook contrasts with recent signs of fatigue in AI-focused stocks and comments from industry leaders about overheated investor enthusiasm."A new industrial revolution has started. The AI race is on," Huang said. "We see $3 trillion to $4 trillion in AI infrastructure spend by the end of the decade."While Nvidia shares have outpaced a roughly 10% gain in the broader market, AI-facing stocks have shown signs of fatigue. OpenAI CEO Sam Altman set off alarm bells this month when he said investors may be "overexcited" about AI.On Wednesday, Huang sounded unperturbed."The more you buy, the more you grow," Huang said, arguing that Nvidia's technological advances allow customers to process increasing amounts of data while using less energy. "The buzz is: everything sold out."Case in point: A customer outside China bought $650 million worth of Nvidia's H20 reduced-capability chip aimed at the Chinese market in the latest quarter, the chipmaker said.For China, Nvidia has been working to get a variant of its latest Blackwell chips approved for sale in the region, after Trump suggested he might allow the company to sell a scaled-down version.HOME TURF DEMANDBesides China, expectations of demand from Big Tech and data center owners known as hyperscalers have pushed up Nvidia's shares over the last two years ago.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,462.11 -39.75 (-0.61%)Dow 3045,457.00 -179.90 (-0.39%)Nasdaq21,489.17 -215.99 (-1.00%)Russell 20002,379.18 +0.76 (+0.03%)VIX14.97 +0.54 (+3.75%)Gold3,487.10 +12.80 (+0.37%)PortfolioSign in to access your portfolioSign inTop gainersIREN IREN Limited 27.33 +4.29 (+18.62%)AMBA Ambarella, Inc. 85.30 +14.67 (+20.77%)AFRM Affirm Holdings, Inc. 95.24 +15.25 (+19.06%)ADSK Autodesk, Inc. 312.24 +23.74 (+8.23%)DOOO BRP Inc. 62.38 +4.89 (+8.51%)Top losersMRVL Marvell Technology, Inc. 65.35 -11.88 (-15.38%)CHA Chagee Holdings Limited 19.51 -2.49 (-11.32%)DELL Dell Technologies Inc. 121.34 -12.71 (-9.48%)DUOL Duolingo, Inc. 302.00 -20.78 (-6.44%)NWG NatWest Group plc 13.79 -0.81 (-5.55%)Most activeWBA Walgreens Boots Alliance, Inc. 11.98 0.00 (0.00%)OPEN Opendoor Technologies Inc. 4.8572 +0.5872 (+13.75%)NVDA NVIDIA Corporation 174.98 -5.14 (-2.85%)IREN IREN Limited 27.33 +4.29 (+18.62%)MRVL Marvell Technology, Inc. 65.35 -11.88 (-15.38%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBABA Alibaba Group Holding Limited 131.95 +12.38 (+10.35%)MRVL Marvell Technology, Inc. 64.88 -12.35 (-15.99%)AFRM Affirm Holdings, Inc. 93.51 +13.52 (+16.90%)DELL Dell Technologies Inc. 121.17 -12.88 (-9.61%)IREN IREN Limited 27.17 +4.13 (+17.93%)Top economic events