The forecast underscores the scale of Nvidia’s business, which has been supercharged by demand for chips that develop and run AI models. But the cumulative figure doesn’t suggest a tremendous acceleration in sales growth. After initially rising as much as 4.8%, the shares soon pared their gains on Monday.
Huang said demand is booming from startups and big companies alike. “If they could just get more capacity, they could generate more tokens, their revenues would go up,” Huang said at GTC in San Jose, California.
Also read: AI Watch: Meta layoff plans, Nvidia’s Vera Rubin debut, Musk’s xAI rebuild
Further, Huang unveiled the Nvidia Groq 3 Language Processing Unit, or LPU, the company’s first chip from the startup that it mostly acquired through a $20 billion asset purchase in December, its largest deal ever. It’s expected to ship in the third quarter.
Groq was founded by the creators of Google’s in-house tensor processing unit, which has gained traction in recent years as a competitor to Nvidia’s graphics processing units. The Groq 3 LPU is built to enhance its technology, with one core optimised for speeding up the GPU.
Huang introduced a full rack dedicated to housing the new Groq accelerators. The Groq 3 LPX rack will hold 256 LPUs, and is meant to sit beside the Vera Rubin rack-scale system that’s shipping to customers later this year. Huang said the Groq LPX rack can increase the tokens per watt performance of its Rubin GPUs by 35 times.
Also read: Oil and Nvidia are key for Wall Street next week amid Iran war volatility
“We united, unified two processors of extreme differences, one for high throughput, one for low latency. It still doesn’t change the fact that we need a lot of memory,” Huang said. “And so we’re just going to add a whole bunch of Groq chips, which expands the amount of memory it has.”
In recent years, Nvidia has accelerated its technology development, aiming to refresh its entire product lineup annually while adding new components. Its next-generation flagship AI processors, due to appear in systems in the second half of 2026, are named Vera Rubin, after the pioneering astronomer whose observations supported the existence of dark matter.
Despite posting sales growth that continues to outpace much of the chip industry, Nvidia’s stock rally has slowed in recent months. Shares were down 3.4% this year heading into the GTC presentation, leaving the company’s market capitalisation at a still-unmatched $4.4 trillion.
(Edited by : Jomy Jos Pullokaran)
