What AI Bubble? Jensen Huang Just Delivered Great News for Artificial Intelligence Stocks.
Nvidia's CEO made a big prediction a year ago, and he's not backing down.
Overview
It was a year ago that Nvidia (NASDAQ: NVDA) CEO Jensen Huang shocked the markets with a bold prediction. In a call with analysts following the company's fiscal second-quarter 2026 earnings results, Huang predicted that artificial intelligence infrastructure spending would reach $3 trillion to $4 trillion by the end of the decade. It was an ambitious prediction, particularly considering that research firms such as Grand View Research believe the entire AI market -- not just infrastructure -- would be valued at $3.5 trillion by 2033. Huang's forecast is only for infrastructure -- it doesn't include software or enterprise applications.
"The last couple of years, you have seen that capex has grown in just the top four CSPs [cloud service providers] by -- has doubled and grown to about $600 billion," Huang told analysts at the time. "So we're in the beginning of this build-out, and the AI technology advances has really enabled AI to be able to adopt and solve problems to many different industries."
Details
A lot has changed since then. Cloud companies continue to build data centers, but there are definite headwinds in the AI space. Shortages of processors, memory chips, and data storage devices threaten to limit the pace of the build-out and AI revenue growth. Foundries are operating at full capacity. And leaders of top AI firms are publicly pushing for a slowdown in frontier model development, citing risks that AI technology lacks enough guardrails.
Source
Originally published at www.fool.com.