Jensen Huang told reporters Nvidia expects to sell twice as many chips over the coming year, a figure that outruns the company's own written guidance of about 70% revenue growth. The gap implies falling revenue per chip even as Nvidia's data center business keeps expanding, and King Charles III used the same event to press AI executives on oversight.
Jensen Huang said on Thursday, Sept. 17, that Nvidia (NVDA) expects to sell twice as many chips over the coming year, speaking to reporters at an AI gathering convened by King Charles III in Scotland. That figure runs well ahead of what Nvidia's own guidance calls for: about 70% revenue growth for the fiscal year ending January 2028, or roughly $673 billion.
The gap between units and dollars
If chip units double while revenue grows 70%, average revenue per chip falls by roughly 15%. Three explanations fit that arithmetic: Nvidia may be sandbagging its written guidance again, the product mix may be tilting toward cheaper parts as AI spreads into laptops, cars and robots, or Huang may be describing a supply scenario the company hasn't committed to on paper.
Huang gave the demand explanation himself, telling reporters that in almost every country where Nvidia operates, "people want to invest in AI", according to CNBC.
Margin pressure already guided
Nvidia's revenue for the quarter ended July 26 reached $96.2 billion, up 106% from a year earlier, with data center sales of $89.0 billion. Gross margin that quarter was 75.0%.
Yet gross margin is guided to decline and bottom out in the fourth quarter of fiscal 2027 at 71% to 72%, partly because of memory prices, with finance chief Colette Kress framing the shortage as a problem the AI buildout is creating for itself. Third-quarter revenue is guided to $108 billion, plus or minus 2%.
Nvidia carries the heaviest weight in the S&P 500, so the gap between guided revenue and Huang's chip talk reaches far beyond the stock itself.
A regulator that doesn't exist yet
King Charles III pressed AI executives from Nvidia, OpenAI, Google DeepMind and Anthropic at the Scotland gathering to build sufficient means of control, according to Fortune. Huang responded that safety should stay with individual companies rather than a coordinated pause, telling reporters that when a product isn't safe enough, the company should hold it back and keep engineering, Scripps News reported.
No regulator with authority over frontier models exists yet. But if that argument loses ground in Brussels, Washington or London, the unit ramp Huang described would gain a governor it doesn't currently have.
For a stock with a market value above $5 trillion, the gross margin line in November's third-quarter report will show whether each chip sold is still worth what it was.
Source: TheStreet
Trading involves risk.
Risk Disclaimer
