Nvidia CEO Jensen Huang signals sustained AI demand growth as agentic AI and inference workloads drive ongoing need for compute

Nvidia chief Jensen Huang told shareholders that 'demand has gone parabolic' because 'agentic AI has arrived' and 'AI can now do productive and valuable work.' AI agents use knowledge from training to take action and complete tasks, requiring GPUs and CPUs (central processing units) for inference workloads.

Nvidia's Blackwell platform continues to attract customer orders, and the company is launching Vera Rubin, a new platform tailored for AI agents, set to ship in the third quarter of this year. The number of partner data centers that have surpassed 10 megawatts has almost doubled in 12 months.

Nvidia stock trades for 25x forward earnings estimates, down from 40x at the start of the year, after recent valuation pressure from investor concerns about demand sustainability. The positive outlook on agentic AI adoption addresses those concerns about future growth.