Nvidia (NVDA) shares climbed more than 2% on Thursday around $218, touching gains of as much as 2.8%, after Chief Executive Jensen Huang said he expects the company to sell roughly twice as many chips over the coming year.

Huang made the remarks at an event in Scotland convened by King Charles III, attributing the anticipated surge in demand to artificial intelligence expanding into a widening range of industries.

The move higher came on a strong day for markets overall. The S&P 500 rose 1.1%, the Nasdaq gained 1.6%, and the Dow added 0.7%, as Treasury yields and oil prices eased following the Federal Reserve's first interest rate hike in three years. Other technology names also advanced: SpaceX and Amazon each gained around 2%, Microsoft rose 1%, Qualcomm added 2%, and Intel surged 9%.

Huang's Demand Outlook

Huang's comments on Thursday build on an already bullish forecast from Nvidia. Last month, the company projected roughly 70% revenue growth for its next fiscal year and said revenue could potentially double if supply proves sufficient to meet demand.

At present, supply — not demand — is Nvidia's main challenge, as the works to produce enough AI hardware to keep up with its customers. Nvidia dominates the market for AI accelerators, the chips used to train and run AI models, and demand for those chips continues to grow as more industries adopt the technology. With customer appetite outpacing what the company can build, how quickly Nvidia can ramp production has become the deciding variable in whether its growth projections are met.

Huang also addressed AI safety at the Scotland event, saying companies need to take responsibility for their technology and ensure AI software is safe before releasing it to customers.

Huawei Steps Up Competition

Nvidia's strong outlook comes as Huawei moves to chip away at its dominance. The Chinese technology company said on Thursday that it plans to launch two new AI chips next year.

Huawei has already shipped more than 1,000 AI computing systems to over 370 customers. These systems combine hundreds of chips to increase computing power.

The push is part of China's broader effort to reduce reliance on US technology. Washington has restricted Chinese companies' access to Nvidia's most advanced chips and placed limits on the semiconductor equipment available to Chinese chipmakers.

Morgan Stanley estimates that China's AI chip market could reach $67 billion by 2030, with domestic companies taking 86% of that market, up from less than half in 2025. If that projection holds, foreign suppliers would be left with roughly 14% of the market. For Nvidia, the pressures in China converge from two directions: policy limits on access to its most advanced chips, and domestic rivals now scaling to serve demand at home.

Diplomatic Backdrop

Huang is also expected to attend a state dinner hosted by President Donald Trump for Chinese President Xi Jinping on September 24, when Xi visits Washington. AI and technology trade are expected to be among the topics at that meeting, making it a date worth watching for signals on the trade rules that govern the AI chip market. Huang attended a state dinner in China in May, alongside Elon Musk and former Apple CEO Tim Cook.

Wall Street remains bullish on NVDA. Analysts hold a Strong Buy consensus on the stock, based on 30 Buy ratings over the past three months, with an average price target of $324.30, implying roughly 48% upside from current levels.

Source: CoinCentral