Nvidia CEO Jensen Huang: "AI Agents Likely to Be a Multitrillion-Dollar Opportunity"

Management expects “Nvidia AI Enterprise full-year revenue to increase over 2x from last year,” Kress said on last quarter’s earnings call. This fast growth is being driven partly by the rush among enterprises to develop AI agents.

There is indeed a rush because top execs in many industries know that their businesses will suffer if they are slower than their competitors to use AI agents to improve their own businesses, and — in the case of cloud-based software companies — to offer AI agents to their customers.

At Nvidia’s CES financial analyst conference, Huang made this comment that highlights how fast he expects AI agents to be used in certain fields: “There are 30 million software engineers [globally]. Starting next year, if a software engineer in your company is not assisted with an AI [agent] you are losing already fast.”

Along with software engineers, Huang expects that folks who develop marketing campaigns will be among early adopters of AI agents. Moreover, he added that all knowledge workers — a number he pegged at about 1 billion worldwide — will eventually be assisted by AI agents.

Huang didn’t expand on what he meant by “multitrillion” dollars, but “multi” is generally defined as more than two. So, multitrillion should mean at least $3 trillion. Moreover, he didn’t share how long he thought it would take the agentic AI market to reach that sum in annual revenue. But we know from his remarks that he expects this market to grow very rapidly.

Let’s go with “multitrillion” referring to $3 trillion, which is a conservative assumption. Here is some data to help put this massive number in context:

• The global car market was worth an estimated $3.4 trillion in 2023.

• 2023 gross domestic product (GDP) for Germany, Japan, India, the U.K., and France — the third through seventh largest economies in the world — was about $4.5 trillion, $4.2 trillion, $3.6 trillion, $3.4 trillion, and $3.1 trillion, respectively, according to the International Monetary Fund (IMF).

Let’s assume that Nvidia captures just 5% of what I’m estimating to be a $3 trillion agentic AI market. This is another conservative estimate, given Nvidia’s dominance of AI-enabling chip and related technology. Five percent of $3 trillion is $150 billion. This would be nearly all new revenue since Nvidia is in the very early stages of making money from AI agents.

In its third quarter of fiscal year 2025 (ended Oct. 27, 2024), Nvidia generated revenue of $35.1 billion, and Wall Street expects its fiscal year 2025 (ends late January) revenue will grow 112% year over year to $129.1 billion.

These numbers illustrate how the AI agent market has the potential to absolutely turbocharge Nvidia’s revenue growth, which is already impressive. Much higher revenue should lead to much higher earnings, which in turn, should help power Nvidia stock higher over the long term.

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Beth McKenna has positions in Nvidia. The Motley Fool has positions in and recommends Accenture Plc, Cadence Design Systems, NetApp, Nvidia, Salesforce, and ServiceNow. The Motley Fool recommends the following options: long January 2025 $290 calls on Accenture Plc and short January 2025 $310 calls on Accenture Plc. The Motley Fool has a disclosure policy.

Nvidia CEO Jensen Huang: “AI Agents Likely to Be a Multitrillion-Dollar Opportunity” was originally published by The Motley Fool