Nvidia CEO projects $3-4T AI infrastructure spending by 2030
Nvidia CEO Jensen Huang forecasted global AI infrastructure investment will reach $3 trillion to $4 trillion by 2030 during the company's earnings call, Reuters reports. The chipmaker guided third-quarter revenue at approximately $54 billion, plus or minus 2%, exceeding Wall Street projections.
Huang excluded potential H20 chip sales to China from the current quarter forecast due to ongoing regulatory uncertainty. However, executives noted that if approvals and orders come through, China-related H20 revenue could contribute $2 billion to $5 billion in the quarter. The company recently secured limited export licenses to sell the H20 chips and reported that one customer outside China purchased $650 million worth during the latest period.
Nvidia's customer base is expanding beyond large cloud providers to include government-run "sovereign AI" programs. Chief Financial Officer Colette Kress said these sovereign initiatives are projected to generate about $20 billion in revenue this year. She added that cloud and enterprise customers combined are expected to spend roughly $600 billion on AI in 2025.
The company reported strong demand for its Blackwell processors, with orders largely allocated through 2026. Earlier-generation Hopper chips also maintain robust demand. Nvidia authorized an additional $60 billion in share repurchases.
The guidance comes after Nvidia reported second-quarter revenue of $46.74 billion, surpassing consensus estimates. Large cloud providers accounted for roughly half of the company's $41 billion data-center revenue.
Nvidia shares traded at $181.60, down $0.17 from the previous close, as investors processed the cautious third-quarter outlook despite the strong revenue beat and long-term projections.The earnings report highlights continued strong demand for AI chips while acknowledging geopolitical challenges that could affect near-term results, particularly regarding the Chinese market.
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