Nvidia CEO Jensen Huang predicted $1tn in AI hardware revenue over the next two years, exceeding Wall Street expectations. The semiconductor chief made the bullish forecast Monday at Nvidia's GTC event in Silicon Valley, driven by rapid adoption of AI agents like Anthropic's Claude Code and growing demand for computing power. Huang expressed confidence that actual demand would prove higher than his projection.

Despite the optimistic forecast, Nvidia's shares briefly surged over 2% before giving up gains to trade lower than before Huang's presentation. The prediction far surpasses analysts' forecasts for Nvidia's total revenue, which are about $835bn for its 2027 and 2028 fiscal years. Huang previously forecast $500bn in AI-driven revenue through 2026 based on purchase orders for the company's Blackwell and Rubin hardware.

To bolster its market position, Nvidia unveiled the new Groq 3 'language processing unit' chip, designed to accelerate AI response times. The chip marks a departure for Nvidia, as it will be manufactured by Samsung rather than Taiwan Semiconductor Manufacturing Company, the company's typical manufacturer. This product stems from Nvidia's licensing deal with chip start-up Groq, which also hired its founder Jonathan Ross.