Nvidia Stock Forecast as Jensen Huang Makes a Bold AI Prediction

Nvidia stock remained a strong sell-off today, September 11, reaching its lowest level since September 2nd. NVDA dropped to $219, down modestly from this month’s high of $234. This article explains why the stock may rebound after Jensen Huang made a bold prediction of the artificial intelligence (AI) industry.

Jensen Huang Believes that AI Growth Will Hit $3 Trillion

NVDA stock dropped even after Huang, the company’s CEO, delivered a bold prediction of the AI industry. In it, he predicted that the size of the AI market will jump to between $3 trillion and $4 trillion. He made this bold prediction in a Goldman Sachs event.

His statement came a few weeks after PWC, the top accounting company, released a report on the sector. In its report, the company said that AI data center spending will surge to $32 trillion through 2050.

If these predictions are correct, it means that companies like Nvidia and AMD will be the biggest beneficiaries. That’s because the AI industry and the newer ones that emerge will be powered by semiconductors.

In his statement, Huang said that AI models will continue getting smarter and smarter over time. And as this happens, demand for GPUs and CPUs will continue rising over time. There are signs that AI models are accelerating.

For example, Anthropic said that it discovered some actors using its models to develop biological weapons. In a statement this week, an Anthropic employee resigned, saying that AI will cause humanity’s extinction in the near future.

Nvidia’s Growth is Accelerating

Financial results show that Nvidia’s business has been in a strong rally in the past few years. Its annual revenue stood at over $26 billion in 2021, a figure that jumped to $215 billion last year.

The most recent results showed that its quarterly revenue was much higher than what it made in 2023. Its revenue jumped by 18% from the first quarter and by 106% from the same period last year. It made over $96 billion in Q2, a figure that management and analysts believe will continue to grow.

A look at its financial statement shows that net income rose to $59 billion, higher than its revenue in the second quarter of last year. Its gross margin jumped from 72.4% in Q2’26 to 75% in Q2’27.

This growth is expected to keep growing. The average estimate among analysts is that its annual revenue will almost double to $411 billion. It will then grow by 77% next year to $727 billion. These estimates are an understatement since the company normally does better than what analysts expect.

There are two more reasons why the earnings report will be better than this. One, these numbers don’t include any sales the company will generate from China. Also, the guidance does not include its CPUs, which are challenging an industry that AMD and Intel have long dominated.

Nvidia Stock Has Formed a Cup and Handle Pattern

Technical analysis, especially on the daily chart, suggests that the NVDA stock price may be on the cusp of a strong bullish breakout. Despite the recent pullback, the stock has remained above the 100-day Exponential Moving Average (EMA).

A closer look shows that the stock has formed a cup-and-handle pattern, a common bullish continuation sign. The ongoing pullback is part of the handle formation. In most cases, this pattern often leads to a strong bullish reversal.

Therefore, the stock will likely rebound, potentially to the upper side of the cup at $236. A surge above that level will signal more upside, potentially reaching $300 by the end of the year.

This article is for informational purposes only and should not be considered financial or investment advice. Equity and technology markets remain volatile. Readers should conduct independent research before making investment decisions.