Jensen Huang explains why Nvidia will grow an astounding 70% next year

NVIDIA CEO Jensen Huang has reaffirmed the company's aggressive growth forecast, telling attendees at a Goldman Sachs conference that he expects revenues to grow by 70% next year. This projection, which would push the company's revenue to an estimated $680 billion from its current fiscal year-end expectation of $400 billion, comes as NVIDIA faces increasing competition from hyperscalers and AI-native startups developing their own custom silicon.

From Chips to Data Centers

Huang argued that the market misunderstands NVIDIA's current business, which has evolved far beyond selling individual graphics cards. He described the company's core product now as a complete, complex system, citing an example of a single 'GPU' that costs $8.5 million, contains two million parts, and requires 'airplanes to ship.' This scale is reflected in strong demand for new products, such as a computer system combining 36 Grace CPUs with 72 Blackwell GPUs, which is currently seeing 27% month-over-month sales growth.

• A single modern NVIDIA 'GPU' system can cost $8.5 million.
• The system is comprised of 2 million individual parts connected with proprietary tech like NVLink.
• A single order can combine dozens of processors, like the 36 Grace CPU and 72 Blackwell GPU configuration.
• Power consumption for such a system can reach 250,000 kilowatts.

An Ecosystem's Central Nervous System

According to Huang, NVIDIA's confidence stems from its pervasive role as a foundational platform for the entire AI industry. He emphasized that every major AI lab—from OpenAI and Anthropic to Google—runs its models on NVIDIA hardware. This deep integration provides the company with unparalleled market intelligence, allowing it to track 'every single gigawatt of land, power, shell around the world.' When questioned about potential 'circular deals' where NVIDIA invests in its customers, Huang dismissed the concern, stating the company only backs startups with validated, revenue-generating contracts, which he claims total over $100 billion.

Strategic Takeaway: NVIDIA's growth strategy hinges on more than just superior hardware; it's built on comprehensive market intelligence gained from its central position in the AI ecosystem. By tracking global data center build-outs and maintaining deep ties with every major AI lab, the company has created a powerful predictive engine for future demand, allowing it to forecast growth with a high degree of confidence despite emerging competition.