Huang says semiconductors will become world’s largest industry

Nvidia ↘ 3.00% CEO Jensen Huang predicted that the semiconductor industry will become the world's largest industry "by far," driven by what he described as an explosion in computing demand from AI agents, factory robots, and AI-powered companies.

Huang said that as "trillions of AIs" begin using computers, the world will need a far larger semiconductor industry to support that demand, according to remarks reported by CGTN on Thursday.youtube+2

A Consistent Vision

The prediction represents the latest in a series of increasingly bold claims Huang has made throughout 2026 about the trajectory of the AI-driven computing economy. At Nvidia's GTC conference in March, Huang projected at least $1 trillion in demand for the company's Blackwell and Vera Rubin chip platforms through 2027, doubling a prior estimate of $500 billion. At Computex Taipei in June, he argued that AI had entered a phase where it functions as "a profit generator, a GDP generator, and the foundation of a new industrial era".instagram+3

At the company's annual stockholder meeting on June 24, Huang declared the onset of the "era of useful AI," emphasizing a shift from experimentation to commercial production.tradingkey

The Scale of Demand

The global semiconductor market is now expected to reach $1.3 trillion in 2026, already a dramatic expansion from prior years. Huang has repeatedly argued that the computing demands of new AI systems — including reasoning models and autonomous agents — require 100 to 1,000 times more compute than earlier chatbots, creating what he views as a structural and permanent increase in chip demand.intellectia+1

At Davos in January, Huang told BlackRock CEO Larry Fink that the AI buildout is creating demand across the entire economy, from energy and construction to advanced manufacturing and cloud operations. His latest remarks frame the semiconductor industry not merely as a beneficiary of the AI boom, but as its central economic pillar — one he believes will eventually surpass all other industries in scale.blogs.nvidia