NVIDIA Corp. CEO Jensen Huang said Wednesday he remains confident that major technology firms will continue to invest heavily in AI infrastructure despite investor concerns. During the company’s fourth-quarter earnings call, he addressed questions about nearly $700 billion in projected AI-driven capital expenditures.
Huang argued that demand reflects a structural shift in computing. He also pointed to strong revenue growth and long-term purchase commitments extending into 2027.
During the earnings call, BofA Securities analyst Vivek Arya questioned whether cloud providers can maintain nearly $700 billion in AI capital expenditures. He cited tightening cash flow at some companies.
Major technology firms have outlined aggressive multiyear AI investment plans. Amazon.com Inc., Microsoft Corp., Alphabet, and Meta Platforms Inc. have allocated billions for GPUs, data centers, and related infrastructure.
A report from Benzinga noted that the scale of spending has sparked concern among investors. Some fear that growth could slow if budgets plateau in 2026 or 2027.
Those concerns surfaced as hyperscale customers commit large sums toward AI expansion. Investors continue to assess whether current spending levels can translate into durable returns.
Jensen Huang rejected fears that AI investment will fade. He said demand stems from a fundamental change in computing economics.
“In this new world of AI, compute equals revenues,” Huang said. He added that without compute, companies cannot generate tokens or grow revenue.
He described the market as reaching an inflection point. He attributed that shift to agentic AI systems and broader enterprise adoption.
According to Huang, AI-generated tokens now generate productive and profitable outcomes for customers and cloud providers. That dynamic, he said, strengthens incentives to keep investing.
He also expressed confidence in the cash flow growth of hyperscale customers. He said their expanding revenues support ongoing infrastructure commitments.
If compute directly drives revenue generation, will hyperscalers slow spending in the near term?
Huang cited NVIDIA’s long-term purchase commitments as evidence of sustained demand. He said the company has roadmap visibility extending into calendar 2027.
He argued that computing has moved beyond traditional software workloads. AI-driven systems require far more processing power.
As a result, infrastructure spending now functions as a direct revenue engine. Huang said companies no longer treat it as a discretionary cost.
Meanwhile, NVIDIA reported fourth-quarter revenue of $68.13 billion. That figure marked a 73% increase from the prior year and exceeded Wall Street estimates of $66.0 billion.
For the first quarter, NVIDIA projected revenue between $76.44 billion and $79.56 billion. Analysts had expected $71.96 billion.
The company also noted that its first-quarter outlook excludes any data center compute revenue from China.
Also Read: US Stock Market Today: Wall Street Rises Ahead of NVIDIA Earnings as Circle Shares Surge Over 20%
NVIDIA said Big Tech is still committed to heavy AI infrastructure spending as demand for compute keeps rising. Jensen Huang linked AI compute directly to revenue growth, while NVIDIA’s strong fourth-quarter results and forward guidance pointed to continued demand into 2027.