Chief executive Jensen Huang told shareholders on Wednesday that the company is at the start of a “decade-long AI infrastructure build-out,” calling it a “multitrillion-dollar opportunity” driven by global demand for sovereign AI.
The rally follows strong earnings and a bullish outlook from Nvidia and key supplier Micron, which reported $9.3 billion in revenue, beating Wall Street’s forecast and echoing confidence in the continued AI boom.
Earlier fears that the likes of Microsoft or Amazon might rein in AI infrastructure spending have faded. Both firms reaffirmed their commitment during the most recent earnings season, and Nvidia is still the chipmaker behind their most demanding workloads.
Huang said Microsoft alone processed more than five times the number of AI model requests last quarter compared to the year before, a metric showing just how deeply embedded Nvidia’s kit has become.
Despite earlier jitters caused by China’s DeepSeek and US restrictions on Nvidia’s China-bound H20 chips, investors have come roaring back. Those export controls shut Nvidia out of a Chinese market it believes could be worth $50 billion. The company is redesigning its Blackwell chips to stay compliant while still shipping to China.
Futurum Group chief executive Daniel Newman said Nvidia’s value surge is down to execution speed.
“Even though cloud providers like Amazon and Microsoft want to build their own vertically integrated AI infrastructure, right now there’s no situation where the best technology stack isn’t Nvidia. Competitive threats are irrelevant if it’s a $400 billion market in the next four years.”
Nvidia is also benefiting from a rise in so-called neocloud AI companies such as CoreWeave, which offer access to high-end AI chips. CoreWeave’s shares have tripled since March, reflecting renewed investor optimism.
The firm has committed to annual AI chip releases, with its next-gen Vera Rubin platform set to follow the Blackwell systems already in hot demand. Huang recently toured the Gulf and Europe, locking in big sovereign infrastructure deals with Saudi Arabia and the UAE.
TechInsights vice-president G Dan Hutcheson said Nvidia’s rebound reflects both the recovery from earlier China-related shocks and wider confidence in chips. “Nvidia was oversold because of both, now it’s riding the biggest wave in tech," he said.