On Wednesday, Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang said he remains “confident” that Big Tech’s massive AI infrastructure spending will continue.
During Nvidia’s fourth-quarter earnings call, BofA Securities analyst Vivek Arya asked whether cloud providers can sustain nearly $700 billion in projected AI-driven capital expenditures, especially as cash flow tightens at some companies.
Major players, including Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corp (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) and Meta Platforms, Inc. (NASDAQ:META) have outlined aggressive multiyear AI investment plans, with billions allocated toward GPUs, data centers and AI infrastructure.
The scale of spending has sparked concerns that growth could slow if budgets plateau in 2026 or 2027.
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Huang pushed back on those fears, saying demand is being driven by a structural shift in computing.
“In this new world of AI, compute equals revenues,” Huang said. “Without compute, there’s no way to generate tokens. Without tokens, there’s no way to grow revenues.”
He said Nvidia is seeing what he described as an “inflection point” fueled by the rise of agentic AI systems and enterprise adoption.
According to Huang, AI-generated tokens are now productive and profitable for both customers and cloud providers, reinforcing the incentive to keep investing.
“I am confident in their cash flow growing,” he said, referring to hyperscale customers.
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Huang also pointed to Nvidia’s long-term purchase commitments and roadmap visibility extending into calendar 2027 as evidence of sustained demand.
He argued that computing has evolved from traditional software workloads to AI-driven systems that require significantly more processing power, turning infrastructure spending into a direct revenue engine rather than a discretionary cost.
Nvidia reported fourth-quarter revenue of $68.13 billion, marking a 73% increase from the same period a year ago and surpassing Wall Street estimates of $66.0 billion.
For the first quarter, Nvidia projected revenue between $76.44 billion and $79.56 billion, well ahead of analysts’ expectations of $71.96 billion.
