Source: Fortune.com
Summary
Nvidia’s Q4 earnings call saw CEO Jensen Huang express confidence in the company’s AI technology, stating that the current spending on AI infrastructure is just the beginning. Despite concerns about the sustainability of the spending spree, Huang believes that the demand for AI chips will continue to grow, driven by the increasing need for computing power. Nvidia’s revenue increased by 73% to $68.1 billion in the final quarter of 2025, with sales expected to expand by up to 200% in the current quarter.
Our Reading
The numbers tell one story.
Nvidia’s revenue surge is largely driven by the big “hyperscalers” – Google, Amazon, and others – who are feverishly buying Nvidia’s GPU chips to build massive AI data centers. These companies have vowed to double their capital expenditures this year, budgeting nearly $700 billion in capex. Jensen Huang’s confidence in the AI market is unwavering, but the question remains: how long can this spending spree continue?
The strategy enters a familiar phase: the AI bubble.
