tech
February 6, 2026
Nvidia shares rise 8% as Jensen Huang says $660 billion capex buildout is sustainable
Huang's comments come after key Nvidia customers Meta, Amazon, Google and Microsoft reported their latest earnings over the past two weeks.
TL;DR
- Nvidia CEO Jensen Huang stated that surging capital expenditures for AI infrastructure are justified, appropriate, and sustainable.
- Huang cited rising cash flows from companies investing in AI as the primary reason for the ongoing spending.
- Key Nvidia customers like Meta, Amazon, Google, and Microsoft are planning to dramatically increase spending on AI infrastructure, potentially reaching $660 billion this year.
- This spending is driven by "sky high" demand for computing power, with AI companies and hyperscalers aiming to increase profitability.
- Examples of AI usage include Meta's transition to generative AI and agents, AWS's product recommendations, and Microsoft's enterprise software improvements.
- OpenAI and Anthropic, both utilizing Nvidia chips, are reportedly generating significant revenue and could increase it substantially with more compute power.
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