Freedom assessed the outlook for Nvidia shares after a forecast of chip sales doubling

Nvidia CEO Jensen Huang said the company’s chip sales could double next year. His forecast points to continued strong demand for AI computing power and eases concerns that the cycle of large-scale investment in AI infrastructure is nearing its peak. According to Freedom lead analyst Vladimir Chernov, the statement could support Nvidia shares, although a significant portion of the expected growth is already priced in.

Nvidia (NVDA) is a U.S. developer of graphics processors, computing accelerators, and software. Its solutions are used in data centers, artificial intelligence systems, the gaming industry, and professional visualization.

Demand for AI chips may remain high

Huang’s forecast eases investors’ concerns that the cycle of large-scale investments by technology companies in AI infrastructure is nearing its peak. The potential doubling of chip sales points to continued strong demand from data-center operators and developers of artificial intelligence models.

Continued growth in capital expenditures by the largest technology companies could support Nvidia’s financial results and further gains in its share price.

What the forecast means for Nvidia shares

Vladimir Chernov considers the news positive for Nvidia’s share price, as management expects to maintain high growth rates at least into next year.

At the same time, the market reaction may be muted. Investors already factor into the price the continuation of the AI boom, Nvidia’s leadership in the accelerator market, and further sales expansion. For sustainable gains, the company will need to back up its forecasts with actual shipments, revenue growth, and the preservation of high profitability.

This is not an individual investment recommendation.