Nvidia rises 7% as Jensen Huang says $660B capex buildout is sustainable (www.cnbc.com)

Nvidia CEO Jensen Huang announced on CNBC that the tech industry's current surge in capital expenditures for AI infrastructure, projected at $660 billion this year, is both justified and sustainable. His assertion follows strong earnings reports from major Nvidia customers like Meta, Amazon, Google, and Microsoft, which plan to dramatically increase their investments in AI. Huang emphasized that this unprecedented infrastructure buildout is driven by soaring demand for computing power, enabling companies to enhance profitability through advanced AI applications. Huang highlighted specific developments, noting how Meta is transitioning to generative AI, while Amazon Web Services and Microsoft are leveraging Nvidia's technology to optimize product recommendations and improve enterprise software, respectively. He underscored the financial success of AI leaders like OpenAI and Anthropic, both utilizing Nvidia chips, and suggested that an increase in computational resources could exponentially boost their revenues. With sustained demand evidenced by the continued rental of even older Nvidia GPUs, Huang's comments signal a robust future for AI development, as companies invest heavily in the necessary infrastructure to support this growth.