Nvidia Shares Add 2% After Huang Says Chip Shipments Could Double by 2027

Nvidia shares climbed more than 2% in premarket trading to about $218.47 after CEO Jensen Huang told an AI event the company expects to sell twice as many chips next year as it does this year, underscoring continued demand for the computing infrastructure behind AI models and applications. The move extended a rebound in semiconductor stocks following a volatile start to the week. Huang's latest outlook reinforces a message Nvidia has stressed for months: despite worries about massive AI spending and a potential industry slowdown, demand for computing capacity remains unusually strong. The comments come on top of already rapid growth. Nvidia reported $96.2 billion in fiscal second-quarter revenue last month, up 106% year over year, with Data Center revenue jumping 117% to $89 billion. The company also guided to roughly $108 billion in third-quarter revenue. Nvidia had previously projected about 70% revenue growth next year. Huang's suggestion that chip volumes could double points to an even faster expansion in hardware shipments than revenue growth alone implies. Still, a doubling in units would not automatically mean revenue doubles. Product mix, pricing, and the transition between Blackwell and next-generation Vera Rubin systems can all influence how shipment growth translates into sales. The timing is notable. Chip stocks sold off sharply earlier this week after some AI industry leaders called for a slower pace of AI development, fueling concerns about future infrastructure spending. Nvidia fell 3.4% during Monday's semiconductor decline as the broader sector also took heavy losses. Huang's forecast runs counter to the idea that demand is set to fade. Nvidia has said it sees a large pipeline for its Blackwell platform and the next-generation Vera Rubin systems. The company has also expanded its relationship with AWS, which plans to deploy 2 million additional Nvidia GPUs across its infrastructure in 2027 and 2028. For Nvidia stock, attention is increasingly shifting from whether AI demand exists to whether Nvidia can meet it. Constraints such as memory supply, advanced manufacturing, packaging capacity, power availability, and data center construction could limit how quickly Nvidia and customers can roll out new hardware. Even so, Huang has maintained a confident tone, reiterating last week that Nvidia could grow revenue around 70% next year, citing unusually broad visibility into global AI infrastructure demand via cloud providers, AI labs, and data center partners.