CEO Huang Reinforces Massive AI Market Projection

Key Highlights

• NVDA shares declined to $219 on September 11, marking the lowest price point since September 2
• CEO Jensen Huang reinforced his ambitious $3T-$4T AI industry valuation forecast during Goldman Sachs Communacopia & Tech conference
• Second quarter revenue reached $96.2 billion, representing a 106% year-over-year surge and surpassing analyst expectations of $92.3 billion
• The company projects 70% revenue expansion for fiscal 2028, significantly exceeding the 45% consensus estimate from Wall Street analysts
• Technical indicators show NVDA developing a cup-and-handle formation on daily charts, with $236 emerging as a critical resistance level

---

Nvidia (NVDA) shares retreated to $219 on September 11, marking a pullback from the monthly peak of $234, despite CEO Jensen Huang delivering an optimistic outlook for artificial intelligence during a prominent technology industry gathering.

NVIDIA Corporation, NVDA

During his Thursday presentation at the Goldman Sachs Communacopia & Tech conference, Huang doubled down on projections he initially shared exactly twelve months earlier. He maintained his forecast that the artificial intelligence sector will expand to a market valuation between $3 trillion and $4 trillion before the end of this decade.

“The semiconductor industry is going to just keep getting larger and larger,” Huang stated. He identified the emergence of a revolutionary computing architecture, the conclusion of Moore’s law scaling, and accelerating requirements for advanced AI capabilities as primary catalysts.

These remarks followed an impressive quarterly performance announcement. The chipmaker delivered adjusted earnings of $2.22 per share against revenue totaling $96.2 billion, comfortably exceeding analyst projections of $2.09 per share and $92.3 billion in sales.

The Data Center segment generated $89 billion in revenue, outperforming the anticipated $85.8 billion. Meanwhile, Edge Computing operations, encompassing gaming and physical AI applications, contributed $7.2 billion compared to forecasts of $6.6 billion.

Exceptional Revenue Expansion Surpasses Projections

Comparing year-over-year performance, revenue expanded by 106%. Sequential quarterly growth registered at 18%. Net income soared to $59 billion, a figure that actually surpasses Nvidia’s entire revenue generation from the second quarter of the previous fiscal year.

Profitability metrics also strengthened, with gross margin advancing from 72.4% in Q2 fiscal 2026 to 75% in Q2 fiscal 2027.

Looking ahead to fiscal year 2028, Nvidia’s management issued guidance calling for 70% revenue growth. This projection stands well above the 45% expansion rate analysts had been modeling. Huang noted that growth rates could potentially exceed 100% if supply constraints related to memory chips were resolved.

“We are struggling to meet demand every day,” stated CoreWeave (CRWV) CEO Michael Intrator during the same conference. “Every GPU we have could be sold to multiple different clients.”

Nvidia maintains an 11.5% ownership position in CoreWeave and serves as the exclusive provider of GPUs that power the company’s artificial intelligence data center infrastructure.

Chart Analysis and Price Action

Examining the daily timeframe, NVDA has developed a cup-and-handle pattern, a technical formation that market participants often interpret as a constructive signal for continued upward momentum. Throughout the recent consolidation phase, the stock has maintained support above its 100-day Exponential Moving Average.

Market analysts project Nvidia’s annual revenue will climb to $411 billion, with potential for an additional 77% expansion in the subsequent year, reaching approximately $727 billion.

These revenue projections do not account for possible sales opportunities in China or contributions from Nvidia’s central processing unit product line, which represents the company’s entry into a segment historically dominated by AMD and Intel.

A recent PWC analysis forecasts that global spending on AI data center infrastructure will accumulate to $32 trillion between now and 2050, a projection that would sustain robust demand for Nvidia’s semiconductor products.

NVDA was changing hands near $219 as of September 11, with market participants monitoring $236 as the subsequent target level should the stock break through current resistance.

The post Nvidia (NVDA) Stock Analysis: CEO Huang Reinforces Massive AI Market Projection appeared first on Blockonomi.

Source: https://blockonomi.com/nvidia-nvda-stock-analysis-ceo-huang-reinforces-massive-ai-market-projection/