Jensen Huang forecasts trillion-dollar AI chip revenue, officially announces the Groq 3 chip, and expands the OpenClaw security ecosystem

On Monday, local time, NVIDIA CEO Jensen Huang stated that driven by the adoption of tools like Anthropic’s Claude Code and OpenAI’s OpenClaw, revenue in the artificial intelligence chip sector is expected to reach at least $1 trillion within the next two years.

Huang said at NVIDIA’s flagship GTC conference in Silicon Valley, a semiconductor giant with a market value of $4.5 trillion, “Based on my current judgment, by 2027, revenue in this field could reach at least $1 trillion.” He also added that he is “confident” actual demand will far exceed this figure.

Following Huang’s remarks, NVIDIA’s stock price rose more than 2% at one point, but the rally was short-lived, and it ultimately closed below its pre-speech level.

In recent months, market skepticism about the returns on massive investments in AI infrastructure, conflicts in the Middle East threatening the semiconductor supply chain, and shortages of memory chips needed for NVIDIA’s products have all contributed to Wall Street remaining unimpressed by the company’s previously optimistic earnings forecasts.

The revenue outlook announced by NVIDIA this time far exceeds Wall Street consensus, signaling the company’s latest confidence that the AI boom will continue to intensify.

As the leading supplier of advanced AI chips, NVIDIA has thus become the world’s most valuable company by market capitalization.

Gene Munster, managing partner at Deepwater Asset Management, said that investor concerns about NVIDIA’s long-term growth potential have created a “resistance wall” for its stock price.

He stated, “The core conclusion of Jensen Huang’s keynote is that market demand is so strong that it even exceeds the most optimistic expectations, yet investors still find it hard to accept this fact.”

Previously, based on the highly certain market demand and purchase orders for NVIDIA’s latest Blackwell and Rubin hardware series, Huang predicted that by the end of 2026, revenue from AI-related business would reach $500 billion.

The new forecast of $1 trillion in AI hardware revenue far surpasses Wall Street’s general estimates for NVIDIA’s total revenue.

Data from Capital IQ shows that analysts’ combined estimates for NVIDIA’s total revenue for fiscal years 2027 and 2028 (ending January 2028) amount to approximately $835 billion.

Huang explained that the popularity of tools like Anthropic’s Claude Code, along with rising market demand for “reasoning computation”—the process of running AI models and related applications—has driven continuous growth in computing power needs.

During this two-hour keynote, Huang announced a series of new initiatives, including a partnership for autonomous taxi services and a new chip designed specifically for orbital data centers; the orbital data center concept was proposed by Elon Musk as part of his vision to integrate SpaceX and xAI.

He also unveiled a new chip product—Groq 3 “Language Processing Unit,” designed to improve AI systems’ responsiveness to user commands.

This move indicates that NVIDIA is attempting to break through its previous reliance on a single GPU to support AI workloads by exploring new chip architectures, thereby strengthening its leadership position in the AI chip market.

Huang said, “The Groq 3 chip is now in mass production and is expected to ship in the second half of 2026, most likely in Q3.”

He also revealed that the chip will be manufactured by Samsung Electronics in South Korea—an attempt for NVIDIA, as its AI processors have traditionally been produced by TSMC. This is the first new product launched after NVIDIA’s licensing agreement with AI startup Groq at the end of last year, which also involved hiring Groq founder Jonathan Ross, who previously worked on Google’s AI chips.

Following the announcement, Samsung Electronics’ stock rose by 4% in South Korea on Tuesday.

Huang stated that as more companies adopt AI assistant tools like OpenClaw, the importance of reasoning computation will further increase.

In February this year, OpenAI hired Peter Steinberger, the founder of OpenClaw. OpenClaw is an open-source, free tool.

Huang compared OpenClaw to other open-source tools that support the tech industry, including the Linux operating system dominating data centers today and the Hypertext Transfer Protocol (HTTP) that enables browsers to load web pages. He said, “This is the next generation of computers.”

NVIDIA is developing a software layer called “NemoClaw” for the underlying infrastructure of OpenClaw’s intelligent assistants. The company claims this software will add the privacy and security protections currently missing from OpenClaw’s standard product.