Chipmaker Nvidia Corp.’s (NASDAQ: NVDA) CEO Jensen Huang pushed back against Wall Street's long-term outlook for the company, saying analysts are underestimating the scale of artificial intelligence demand.
Dismisses Wall Street Forecasts
On last week's Open Source podcast, Huang was asked about Wall Street consensus from 25 analysts projecting Nvidia's growth "flatlining" after 2027. He said he had no issue with those forecasts but argued they fail to capture the scale of AI adoption that is now underway.
During the podcast, Huang said, “We're comfortable with that,” adding that his company has “no trouble beating the numbers on a regular basis.”
He described a “massive divergence of belief” between what AI leaders like OpenAI's Sam Altman and Microsoft Corp.'s (NASDAQ: MSFT) Satya Nadella are projecting and what Wall Street models assume. “Our opportunity, as I described it, is much larger than the consensus,” he said.
Huang pointed to what he called “two exponentials” driving compute requirements, that is, the rapid increase in the number of users engaging with AI tools, followed by the exponential growth in compute needed per user as models move from one-shot inference to reasoning.
“Until we fully convert all general-purpose computing to accelerated computing and AI… the chances [of a glut] are extremely low,” he said.
Huang Defends $100 Billion OpenAI Investment
On the podcast, Huang defended his decision to invest $100 billion in OpenAI, calling it “some of the smartest investments we can possibly imagine.”
Huang said, “OpenAI is likely going to be the world’s next multi-trillion-dollar hyperscale company,” adding that Nvidia will be working with the company “at the chip level, at the software level, at the systems level, at the AI factory level” to help build and operate its AI infrastructure.
This comes amid growing investor concerns that the company was creating a “circular” investment loop by investing in OpenAI, which would in turn acquire chips from Nvidia.
Nvidia shares were up 0.28% on Friday, closing at $178.19, and are up 0.81% pre-market. The stock scores high in Benzinga Edge Stock Rankings, with a favorable price trend in the short, medium and long terms. Click here for deeper insights into the stock, its peers and competitors.
Read More:
Image via Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
