Huang vs AI Slowdown: Nvidia's Rejection Sets Stage for Future Growth
Nvidia's CEO Jensen Huang is taking on the AI slowdown narrative, rejecting calls for a slower pace of frontier-model development. Huang argues that AI safety can be handled through engineering and testing, rather than restricting the field as a whole.
The disagreement has significant implications for Nvidia's business, which relies heavily on demand for its computing infrastructure from AI companies. However, recent results show no slowdown yet: Nvidia's Q2 revenue hit $96.2 billion, with data-centre sales reaching $89 billion.
Nvidia expects another $108 billion in quarterly revenue next quarter and has already stated that demand for its new Vera Rubin platform is accelerating. The company also forecasts roughly 70% revenue growth in fiscal 2028.
The bottleneck in supply is expected to remain a constraint through at least the end of fiscal 2028, meaning the current constraint is still how quickly the industry can build and deliver infrastructure, rather than a lack of customers willing to buy it.