Nvidia shares rose more than 2% on Thursday, reaching approximately $218, after Chief Executive Officer Jensen Huang said the company expects to sell roughly twice as many processors over the next 12 months. The stock gained as much as 2.8% during the session.

NVIDIA Corporation trades under the ticker NVDA. Huang made the comments at a gathering in Scotland organized by King Charles III, attributing the anticipated increase in demand to the expansion of artificial intelligence across a growing range of industries.

The advance came during a broadly positive session for financial markets. The S&P 500 rose 1.1%, the technology-heavy Nasdaq Composite gained 1.6%, and the Dow Jones Industrial Average increased 0.7%. The indexes benefited from declining Treasury yields and oil prices following the Federal Reserve’s first interest-rate increase in three years.

Several technology companies also posted gains. SpaceX and Amazon each rose approximately 2%, Microsoft advanced 1%, Qualcomm gained 2%, and Intel climbed 9%.

Huang Expands on Nvidia’s Demand Outlook

Huang’s remarks build on an optimistic outlook Nvidia issued the previous month. The chipmaker projected approximately 70% revenue growth for the upcoming fiscal year and said revenue could potentially double if production capacity is sufficient to meet market demand.

Nvidia has identified production capacity, rather than customer demand, as its primary constraint. The semiconductor company is working to manufacture enough artificial intelligence hardware to meet requirements from customers as adoption expands across industries. As a result, the company’s ability to increase output is a key factor in whether it can fulfill the demand outlined by Huang.

Nvidia remains a market leader in AI accelerators, specialized processors used to train and operate artificial intelligence models. As companies increase their use of AI, demand for these chips has continued to rise.

Huang also addressed AI safety at the Scotland event. He said corporations must take responsibility for their technology and confirm that AI software meets safety standards before it is deployed to customers.

Huawei Plans New AI Processors

Nvidia’s outlook comes as Huawei steps up efforts to challenge its position in the AI-chip market. The Chinese technology company said Thursday that it plans to introduce two new artificial intelligence processors in 2026, as China continues its push for greater technology independence.

Huawei has already delivered more than 1,000 AI computing systems to over 370 clients. The integrated systems combine hundreds of processors to increase computing capabilities.

The effort forms part of China’s broader strategy to reduce its reliance on American technology. The U.S. government has restricted Chinese companies’ access to Nvidia’s most advanced chips and placed limits on semiconductor-manufacturing equipment available to Chinese chip producers.

Morgan Stanley estimates that China’s AI-processor market could reach $67 billion by 2030. Domestic manufacturers could account for 86% of that market, up from less than 50% in 2025.

Huang is expected to attend a state dinner hosted by President Donald Trump for Chinese President Xi Jinping on September 24, during Xi’s visit to Washington. Artificial intelligence and technology trade are expected to be prominent topics during the diplomatic engagement. Huang previously attended a state dinner in China in May, where he appeared alongside Elon Musk and former Apple CEO Tim Cook.

Wall Street analysts remain broadly positive on NVDA. The stock has a Strong Buy consensus rating based on 30 Buy recommendations issued over the past three months. Analysts have set an average price target of $324.30, representing approximately 48% potential upside from current levels.

Source: Blockonomi