Jensen Huang Says Nvidia Has 'Big Plans' For Anthropic — 'We're Scaling Very, Very Quickly'

• Huang said during the interview that AI has moved from generative to agentic, meaning the technology can now reason, understand the tasks given to it, plan, and perform the required work.
• He added that this shift has made tokens profitable, so AI model builders want more compute to generate more revenue, which has helped Nvidia’s sales.
• Huang also downplayed concerns of rising competition from its customers-turning-competitors like Amazon, which also has its own chip business.

Nvidia Corp. (NVDA) CEO Jensen Huang on Thursday stated that the company has “big plans” for Anthropic, after the chip giant posted yet another beat-and-raise quarter on Wednesday.

During an interview with CNBC, Huang downplayed concerns of rising competition in the AI infrastructure space, stating that Nvidia is gaining share in the hyperscalers segment.

“We’re gaining share there because… we’ve always supported OpenAI, xAI, Meta, Microsoft and a whole bunch of other AI startups, but this year, we had the benefit of also winning Anthropic,” Huang said.

He added that Nvidia is helping the OpenAI rival scale up and have more capacity to expand its reach and generate more revenue.

“With Anthropic, we’re scaling very, very quickly. We’ve got big plans for them,” Huang said, while adding that Nvidia is gaining share in AI inference as well as hyperscalers.

Nvidia shares were down 2% in Thursday’s opening trade. NVDA was among the top trending tickers on Stocktwits at the time of writing.

AI Has Moved From Generative To Agentic, Says NVDA’s Huang

Huang said during the interview that AI has moved from generative to agentic, meaning the technology can now reason, understand the tasks given to it, plan, and perform the required work.

He added that as a result of this shift in AI, model builders are now generating tokens. “These tokens are now profitable, and so they want more compute so they can generate more tokens for more revenues,” he said, adding that compute is revenue in this era of AI, which is why Nvidia’s revenues are sky-high.

Huang also touted Nvidia's unique position in the AI infrastructure space, since it offers its customers the full range of hardware, software, and connectivity stack. He said this represents half of the company’s business and is also the fastest-growing segment.

Huang Downplays Competition Concerns

Huang also downplayed concerns of rising competition from its customers-turning-competitors like Amazon.com Inc. (AMZN), which also has its own chip business.

“Just because a competitor emerges, the path, the journey from announcing a chip to eventually building a sustainable business… is a long journey,” he said.

Huang added that while many companies have internal projects and some are canceled, while others are sustained, Nvidia is focused on supporting its hyperscale partners and AI model builders.

During an earnings call last month, Amazon CEO Andy Jassy stated that its chips business is growing rapidly.

“If our chips business was a stand-alone business, and sold chips produced this year to AWS and other third parties (as other leading chips companies do), our annual run rate would be ~$50 billion,” Jassy said.

Analyst Sees NVDA Market Cap Soaring Past $10 Trillion

According to TheFly, Baird raised its price target for Nvidia to $500 from $300 and maintained an ‘Outperform’ rating, implying 128% upside from current levels. With Nvidia’s market capitalization currently at $5.3 trillion, Baird’s new price target implies that the firm sees it soaring past $10 trillion.

BofA analysts dismissed Nvidia's post-earnings pullback, urging investors to focus on the company's long-term fundamentals rather than near-term volatility.

NVDA stock is up 17% year-to-date and 66% over the past 12 months. The S&P 500 ETF (SPY) is up 27% over the past 12 months, while the Invesco QQQ Trust ETF (QQQ) is up 38%.

The Vanguard Information Technology Index Fund ETF (VGT) is up 51% over the past 12 months, while the iShares Russell 1000 Growth ETF (IWF) is up 26%.

Also See: NVDA Stock Looks 'Remarkably Cheap', Says Wall Street After Beat-And-Raise Q1 — Analyst Sees Nvidia Market Cap Soaring Past $10 Trillion

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