Nvidia (NVDA) stock rose more than 2% on Thursday to around $218, putting the shares on track for a second consecutive session of gains as tech stocks helped drive a broader market rebound.
The Dow Jones Industrial Average gained 0.7%, while the S&P 500 rose 1.1% and the Nasdaq Composite advanced 1.6%.
The gains came as Treasury yields and oil prices eased, helping markets recover some of the losses triggered by the Federal Reserve’s first interest-rate hike in three years.
SpaceX and Amazon each gained about 2%, while Microsoft rose 1%.
Other AI-related chip stocks also moved higher, with Qualcomm up 2% and Intel surging 9%.
Huang sees chip demand doubling
Nvidia CEO Jensen Huang remains bullish on the outlook for AI infrastructure, saying Thursday that he expects the company to sell twice as many chips over the coming year as artificial intelligence spreads across more industries.
Huang made the comments in Scotland at an event convened by King Charles III.
Nvidia is the leading supplier of AI accelerators, which are used to develop and run artificial intelligence models.
The comments come as Nvidia continues to forecast rapid growth despite increasing debate about the sustainability and risks of AI development.
The company projected revenue growth of 70% for its next fiscal year last month and said revenue could potentially double if it had sufficient supply to meet demand.
Huang also acknowledged concerns surrounding AI safety, saying companies need to take responsibility and ensure their AI software and services are safe before releasing them.
Huawei targets Nvidia’s AI dominance
Nvidia’s bullish demand outlook comes as Chinese technology giant Huawei accelerates efforts to develop alternatives to Nvidia’s AI computing systems.
Huawei said Thursday that it plans to launch two new AI chips next year.
The company has already shipped more than 1,000 AI computing systems, which combine hundreds of chips to increase computing power, to more than 370 customers.
The push is part of China’s broader effort to reduce its reliance on US technology.
Washington has restricted Chinese companies’ access to Nvidia’s most advanced AI chips and placed controls on the semiconductor equipment available to Chinese chipmakers.
Huawei has also been subject to US restrictions since 2019.
Huang expected at Trump-Xi dinner
The US-China technology relationship could also come into focus next week.
Huang is expected to attend a state dinner hosted by President Donald Trump for Chinese President Xi Jinping when Xi visits Washington on September 24, according to media reports earlier this week.
AI is expected to be among the issues discussed during the Trump-Xi meeting as Washington and Beijing negotiate over economic and technology matters.
Huang has maintained close ties with Trump and was among US business leaders who traveled to China with the president earlier this year.
He also attended a state dinner hosted by Xi during Trump’s visit to China in May alongside Elon Musk and former Apple CEO Tim Cook.
The meeting comes as Nvidia remains central to the US-China AI technology debate.
Morgan Stanley estimates China’s AI chip market could reach $67 billion by 2030, with domestic companies accounting for 86% of the market, compared with less than half in 2025.
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