Nvidia, the American hardware manufacturer, is anticipating significant growth in the AI industry, with expectations that it could surpass $600 billion in value.

This prediction was made by Nvidia’s Head of Enterprise Computing, Manuvir Das, during a presentation at the Goldman Sachs Communacopia and Tech Conference. He attributes this anticipated growth to the immense demand for generative AI technologies driven by tech giants.

Das believes that within the AI industry, the chip segment alone could be valued at up to $300 billion, while the applications in generative AI (GenAI) and omniverse enterprise could contribute an additional $300 billion. He emphasized that despite the substantial recent growth in the AI sector, there is still considerable room for expansion, particularly as more company functions become reliant on computing.

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The demand for computing resources, data centers, energy, and processing power is expected to continue increasing as companies rely more on AI technologies for various applications. While these projections represent a significant growth opportunity, they are likely to unfold over the next decade rather than happening overnight.

Nvidia has been a major player in providing GPUs (graphics processing units) for AI applications and has witnessed substantial revenue growth in its data center division, driving the company’s valuation toward the trillion-dollar mark.