13 Words From Jensen Huang That Spell Good News for Nvidia Shareholders
Despite recent stock declines, Nvidia CEO Jensen Huang's comments highlight robust demand outpacing supply for its AI chips. With the upcoming Vera Rubin platform and expansion into CPUs for agentic AI, Nvidia expects $1 trillion in orders through 2027 and $20 billion in standalone CPU revenue this year. The company remains a market leader with sustained growth potential.
Some investors fear that Nvidia's (NVDA +3.08%) amazing run since the start of the artificial intelligence (AI) boom may come to an end relatively soon, perhaps because demand for its market-leading GPUs (Graphics Processing Units) will cool down, or other companies will continue developing alternative AI chips in-house and decrease their reliance on Nvidia's products.
That's likely partly why, despite Nvidia announcing strong first-quarter fiscal year 2027 results on May 20 (for the period ending April 26), the company's shares have been southbound since. However, there are good reasons to remain bullish on Nvidia's prospects. And recent comments from the company's CEO, Jensen Huang, confirm that.
Image source: The Motley Fool.
Demand is still outpacing supply
Nvidia has sometimes struggled to meet demand for its products over the past few years. That's not surprising. Corporations have been racing to order GPUs -- the workhorses of AI training -- to capitalize on the lucrative AI industry and avoid falling behind their peers. Nvidia has made progress toward fixing this problem, according to Huang, but there is still some work to be done. As he recently said at Computex, an international information technology trade show held in Taiwan: "We have supply for very, very robust growth, but we're still supply constrained."
These 13 words offer investors valuable insight. On the one hand, they tell us that Nvidia is hard at work addressing supply constraint issues. However, demand for the company's products is so high that it cannot eliminate the problem entirely, or at least, it hasn't done so yet. This is especially important as Nvidia is launching its Vera Rubin platform and preparing for the agentic AI revolution. Management famously said it expects $1 trillion in orders for its Blackwell and Vera Rubin platforms through 2027. AI agents run on CPUs (Central Processing Units), and Huang thinks the company's new Vera CPU -- developed to handle agentic AI workloads -- could be even more popular than its GPUs.
NASDAQ: NVDA
Key Data Points
Capitalizing on the agentic AI shift
Nvidia's shares have climbed by more than 1,000% over the past five years, but the company isn't done riding the AI tailwind. It remains the undisputed leader in GPUs and could make significant headway in the CPU market, where it will challenge established leaders like Intel (INTC +10.64%) and Advanced Micro Devices (AMD +5.27%). For those who think Nvidia is unlikely to make a serious dent in this market, given Intel and AMD's dominance, consider that the company expects $20 billion in stand-alone CPU revenue through the end of the year. And with a $200 billion addressable market in the CPU space thanks to the rise of agentic AI, Nvidia could see sustained demand -- along with fast-growing revenue and earnings -- over the next five years, at the very least. The bottom line: It's not too late to invest in Nvidia.
