Jensen Huang Just Gave Artificial Intelligence (AI) Investors Trillions of Reasons to Remain Bullish

Artificial intelligence (AI) investors may be worried that the peak is approaching for tech stocks, and they may be running out of steam. Nvidia (NASDAQ:NVDA) CEO Jensen Huang, however, still sees loads of potential upside ahead. "The semiconductor industry is going to just keep getting larger and larger," Huang stated at a recent tech conference.

Huang has been a bit of a visionary for AI and maintains a bullish outlook for the industry, fueled by the needs of consumers. "People are expecting these AI models to be smarter and smarter because they don't like wrong answers. Then the compounded result of that should result in a very large industry."

And by "very large," Huang projects that the entire AI market will be worth between $3 trillion and $4 trillion by 2030. That's in line with a previous forecast that Huang made, which is great news for AI investors, as there appear to still be terrific growth opportunities ahead.

Image source: Getty Images.

Nvidia's business remains robust

Nvidia has been a huge benefactor of the growing demand for AI models, products, and services. That much is evident through the company's recent earnings report, with its growth rate accelerating from previous periods.

While the company's growth rate has slowed from where it was a few years ago, there's been a notable acceleration in recent quarters, with its growth rate now rising back to over 100%, which is incredibly impressive for a company of Nvidia's massive size.

NVDA Revenue (Quarterly YoY Growth) data by YCharts

If Huang's forecast for the AI market ends up being true, and it does continue growing at a fast pace, then Nvidia's business may continue to dominate. While there have been tech companies developing their own chips and rivals offering custom chip solutions, the numbers speak for themselves, showing that demand for Nvidia's chips remains incredibly high. And that trend could continue for the foreseeable future. It's just a matter of how much higher its growth rate gets.

The stock may still be worth buying

At over $5 trillion in market cap, it's hard to say that Nvidia's stock is cheap. But given the company's massive level of earnings, it's only trading at 27 times its trailing profits. It's not an obscene multiple by any stretch. It's a more reasonably priced investment than many other AI stocks.

For long-term investors, it can continue to be an excellent buy, as it'll benefit from the growth in the AI industry. The caveat, however, is that there is some risk, as how the stock performs will inevitably be tied to the outlook for AI as a whole. Nvidia has effectively been symbolic of AI's growth, and if there's optimism, it can surge higher. However, if the market is growing concerned about AI and tech companies, Nvidia could be vulnerable. For investors who are comfortable with that risk, the AI stock may be worth buying, even at its elevated levels.

David Jagielski, CPA 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.