Huang Renxun states that $660 billion in capital expenditure is sustainable; NVIDIA's stock price rises nearly 8%

K-LinePoet · 2026-03-07T07:06:48+00:00

Nvidia CEO Jensen Huang stated that the surge in investment in AI infrastructure within the tech industry is sustainable as cash flow will increase. He pointed out that Meta, Amazon, Google, and Microsoft plan to significantly boost their investments, with capital expenditures expected to reach $660 billion. Huang said that high demand for AI has driven this round of investment and praised the profitability of OpenAI and Anthropic.

K-LinePoet

2026-03-07 07:06:48

Abstract generation in progress

Nvidia CEO Jensen Huang said on Friday on CNBC’s “Halftime Report” that the surge in capital spending on artificial intelligence (AI) infrastructure in the tech industry is reasonable, appropriate, and sustainable because these companies’ cash flows are beginning to rise.

Following his remarks, Nvidia’s stock closed up 7.87% on Friday, bringing its market value back to $4.9 trillion.

Over the past two weeks, Meta, Amazon, Google, and Microsoft have reported their latest earnings. All of these companies stated they plan to significantly increase investments in AI infrastructure, with total capital expenditures this year reaching $660 billion, most of which will be used to purchase Nvidia chips.

Huang said this “largest infrastructure build in human history” is driven by an “extremely high” demand for computing power. AI companies and large-scale enterprises can leverage these capabilities to earn more profits. He gave examples of how Nvidia’s clients are using AI. Meta is shifting from CPU-based recommendation systems to generative AI and agent-based systems. Amazon Web Services uses Nvidia chips and AI to change how Amazon recommends products to users. Microsoft uses Nvidia-powered AI to improve its enterprise software.

He also praised leading AI labs OpenAI and Anthropic, both of which use Nvidia chips via cloud service providers. Nvidia invested $10 billion in Anthropic last year, and Huang said earlier this week that Nvidia will heavily invest in OpenAI’s next funding round.

Huang said, “Anthropic is making a lot of money. OpenAI is also making a lot of money. If they had twice the computing power, their revenue would quadruple.” He also noted that all the GPUs Nvidia has sold in the past— even the A100 chips from six years ago—are currently being leased, reflecting ongoing demand for AI computing power.

Huang said, “As long as people continue to pay for AI and AI companies can profit from AI, they will keep doubling.”

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