Jensen Huang’s Bullish Call on the AI Market Can Make Nvidia a $5 Trillion Company Again
Nvidia (NVDA -3.55%) recently gave up its seat as the world’s most valuable company. That title now belongs to Apple, whose shares are up 25% in 2026 (as of July 28). This significantly exceeds the artificial intelligence (AI) stock‘s muted 6% gain this year.
But it wasn’t long ago that Nvidia’s market capitalization was firmly above $5 trillion, something that could happen again very soon. Investors worried about the shares’ latest fall will take solace in CEO Jensen Huang’s bullish call from several weeks ago on the prospects of the AI market.
Image source: Nvidia.
One of the most credible AI executives is telling investors to be optimistic
When he was in Seoul, South Korea, in early June, Huang essentially told investors to act aggressively when there’s market weakness. At the time, chip stocks were selling off, a rout that’s continuing now. Anytime shares in these companies take a hit, it’s time to be a buyer, Huang believes.
He thinks the AI revolution is just getting started. During Nvidia’s GTC conference in March, Huang said that the business will collect $1 trillion in sales from its chips through 2027, double the previous $500 billion forecast through 2026.
And chief financial officer Colette Kress believes that spending on AI infrastructure will total $3 trillion to $4 trillion by the end of the decade. This isn’t a cumulative figure; the colossal sum is an annual outlook. These numbers reveal management’s firm belief that demand isn’t going anywhere.
Nvidia sits at the center of the AI boom
Of course, Nvidia’s CEO has every reason to downplay any of the market’s concerns regarding the mind-boggling AI build-out. His goal is to drive ongoing optimism among investors. After all, his business is at the heart of the infrastructure boom, providing powerful graphics processing units that data centers need to run AI models. However, given Nvidia’s monster success, with revenue and net income up 85% and 211%, respectively, year over year during Q1 2027 (ended April 26), Huang’s perspective is definitely credible.
Nvidia might have more skin in the AI game than any other company. For example, it invested $30 billion in OpenAI in March and has taken equity stakes in many other companies. And it’s reportedly looking to guarantee $250 billion in financing for OpenAI so the leading AI lab can lease a new data center in Ohio. Nvidia also repurchased $19 billion of its own stock last quarter.
Today’s Change
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Watch the hyperscalers
Alphabet, a hyperscaler that’s rapidly expanding its computing capacity, just raised its 2026 forecast for capital expenditures (capex) to $200 billion (at the midpoint). This shows that the spending isn’t letting up. In fact, it’s rising.
Based on recent trends, there’s a high likelihood that the other hyperscalers will also bump up their capex plans when they report financial results later this week.
The biggest unknown, though, is whether the investment community believes in the durability of this AI revolution. That’s the multitrillion-dollar question the market is facing. Jensen Huang will certainly do his best to drive investor bullishness.
