NVIDIA CEO Jensen Huang: Chip Sales Expected to Double Next Year
NVIDIA CEO Jensen Huang stated at an AI summit convened by King Charles in Scotland that the company's chip sales are expected to reach double this year's figures next year, as countries invest in local AI infrastructure for industry and economy.
The company provided a revenue guidance for the next fiscal year in August, indicating approximately 70% growth. The CFO previously mentioned that revenue could double if not constrained by supply. Huang spoke in terms of shipment numbers, which are greater than the previously announced revenue growth guidance. He also emphasized the importance of AI safety, stating that unsafe products should halt further engineering; speed is important, but not at the expense of safety. He rejected the idea of regulating AI in the same manner as social media.
The summit also featured representatives from DeepMind, OpenAI, and Anthropic. Recently, Huang opposed the establishment of an industry self-regulatory assessment body similar to FINRA. Following his remarks, NVIDIA's stock rose approximately 2.2% in pre-market trading.
From a market mechanism perspective, this is a re-pricing of chip stocks driven by management's revised guidance: doubling sales translates to unmet demand despite supply constraints. Beneficiaries include NVIDIA and its server, power supply, and foundry supply chains; those under pressure are short sellers modeling based on the 70% guidance and competitors with slower acceleration cards that did not account for doubling shipment numbers in their models. Capital is buying into the leader in pre-market trading, interpreting safety statements as non-impactful to shipments rather than as a production cut forecast.
Source: Public Information
ABAB AI Insight
Huang translated the company's financial report's "supply constraints limit revenue growth to 70%" into "shipment numbers can double," effectively telling the market that the bottleneck lies in capacity, not in orders. The safety statement and the doubling statement were made on the same afternoon: the halt applies to lab products, not data center racks. His opposition to an assessment committee stems from concerns that a 30-day pre-review could alter chip delivery schedules; his acceptance of "halt if unsafe" leaves the stop button with the engineering department.
The capital path involves sovereign and cloud vendors continuing to place cluster orders, with European super factories requiring hundreds of thousands of chips, competing for the same order book. The foundry and packaging capacity will determine whether the 70% growth can turn into a doubling. Stocks are initially buying into the more aggressive set of numbers, waiting for confirmation of shipments next quarter.
Comparing 2023-2024, he referred to data centers as new industrial power and consistently framed safety as an engineering issue rather than a licensing issue: shovel businesses rely on construction cycles, not assessment committees. The industry is in a phase where capacity expansion has yet to catch up with verbal demand.
Structural judgment belongs to capital concentration. The mechanism is that training and reasoning remain highly bound to a single accelerator card ecosystem; doubling sales means more capital expenditure flows into the same CUDA and system stack. Safety discourse is used to prevent new agencies from intercepting releases, not to reduce shipments. Pricing power lies with the company that can deliver, not with the one that can draft assessment proposals.
ABAB News · Law of Cognition
- When supply constraints are written into financial reports, doubling sales refers to selling parts that have not yet been produced.
- Safety can halt products, but not necessarily halt racks.
- If an assessment committee can alter delivery schedules, shovel vendors will call first.