Jensen Huang Just Announced Fantastic News for Nvidia Shareholders

Nvidia (NASDAQ:NVDA) has turned its graphics processing unit (GPU) expertise into an artificial intelligence (AI) empire. These powerful chips, once mainly used in the gaming industry, became a key tool for AI in recent years. And Nvidia has built on this by expanding its offerings into a full suite of AI products and services, such as networking tools and AI platforms tailored to specific industries.

All of this has led to incredible growth for the tech giant, with earnings soaring to record levels. In the latest quarter, for example, revenue climbed more than 100% to about $96 billion. And profit also surged in the triple digits to $59 billion. Meanwhile, the stock has been a top performer over time for investors, advancing about 900% over the past five years.

But investors have worried about how far this AI boom can go. They've questioned the extraordinary levels of capital spending by tech companies to support the infrastructure build-out, with the concern being that the revenue opportunity may fall short. This worry has weighed on Nvidia stock on occasion, even pushing it to a decline in the first quarter of this year.

However, last week, a new clue about the future emerged: Nvidia chief Jensen Huang just announced fantastic news for shareholders.

Image source: Nvidia.

Nvidia's early bet on AI

Before we dive into the latest, though, let's take a quick look at Nvidia's path so far in AI, a market on track to reach into the trillions of dollars by the end of the decade. Nvidia recognized the promise of AI early and saw that the GPU could play a critical role. This was about 10 years ago, and Nvidia decided to go all in on this industry and focus the design of its GPUs on AI.

It was a successful bet, as we can see through Nvidia's earnings growth in recent years.

NVDA Revenue (Annual) data by YCharts

And the fact that Nvidia entered the market early allowed it to develop key relationships with customers and build a solid reputation. The company's pledge to update GPUs on an annual basis has been another element that's supported its leadership in this market.

All of this has clearly been very positive, and this momentum could continue. Nvidia and AI peers have spoken of ongoing high demand for their goods and services. It's important to note that real-world use of AI is just beginning, signaling more earnings growth for these players down the road.

Still, some investors aren't convinced -- and that's weighed on AI stocks, including Nvidia, holding them back from major gains this year.

Jensen Huang speaks at a summit

With all of this in mind, let's consider Jensen Huang's fantastic news for shareholders. Huang, speaking at a summit in Scotland, told members of the press that Nvidia would double the number of chips sold next year. That's compared with this year.

"The reason for that is because AI has, has so much contribution to the benefits of different industries, different economies, and you can see that in almost every single country that we're in, people want to invest in AI," Huang said, according to CNBC.

This follows the company's first-ever forecast for the full year to come: During Nvidia's recent earnings report, citing increased visibility, the tech giant predicted a 70% year-over-year gain in revenue in the next fiscal year.

Of course, among investors and the general public, concerns about the tech build-out may persist. But Huang's comments further reinforce the case that Nvidia's AI revenue growth opportunity is far from over -- and the company may actually be entering a fresh wave of growth as AI is more actively applied by companies, individuals, and governments.

This should offer Nvidia shareholders and potential investors a certain level of comfort. Even if the stock doesn't take off immediately, future business prospects remain bright, and this should translate into further gains for the stock over time. So these latest words from Huang represent fantastic news for anyone who owns Nvidia stock or who aims to get in on this top AI player.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.