Jensen Huang, the big brain at Nvidia, is putting his money where his mouth is with what may be the biggest bet ever seen in the global technology sector.

Nvidia is set to increase hardware production next year to keep up with the demand for equipment used in the development and deployment of artificial intelligence (AI) technologies. Huang made this announcement following a very good sales forecast on Wednesday, August 23rd, adding that the company expects to buy back around $25 billion of its shares.

As of Wednesday’s announcement of better than expected results, experts believe that Nvidia’s stock price is on its way to an all-time high thanks to the way it had tripled within this year.

The forecast results appear to have given Huang the impetus to thumb his nose, so to speak, at analysts who predicted last year that AI was little more than a flash in the pan. Indeed, Huang’s Nvidia practically has a monopoly on the systems used for such tools as ChatGPT and a number of other generative AI applications.

Nvidia’s Big Field Day

There are two reasons as to why Nvidia is currently riding the crest of success. The first is the major shift that information technology professionals are making from conventional central processing-reliant data centers to those powered by Nvidia chips.

Indeed, the growing demand for Nvidia chips has made the company some serious money. At the end of Q2-2023, the company’s adjusted gross margins rose to 71.2% – shocking growth at a time when the gross margins of its competitors are stuck between 50% and 60%.

The second involves the exponential increase in the use of AI-generated content for numerous purposes, as well as the use of AI tools to improve overall efficiency and productivity in the modern workplace.

While some critics have opined that this is not a trend that will last, Huang believes otherwise. While he isn’t sure how long the AI boom is going to run, he is sure that this is not something that will simply stick around for a single quarter.