Nvidia stock has rebounded, climbing 4%, but investors are still asking a crucial question: Can artificial intelligence drive enough revenue to justify the massive spending on GPUs and other AI hardware?
CEO Jensen Huang has faced this question repeatedly. While he addressed it during Nvidia’s August earnings call, the market reaction was lukewarm, with shares dropping after the report.
Huang revisited the issue at a Goldman Sachs event, emphasizing the strong returns from AI infrastructure investments.
According to Jensen Huang, every dollar spent on Nvidia’s AI hardware yields $5 in rentals worldwide, and demand is outstripping supply. He also highlighted how AI is boosting productivity within Nvidia, with software engineers using AI tools to streamline code development, essentially working alongside “digital companions.”
Huang acknowledged that GPU costs can rise for customers, but with a 20x reduction in computing time, users still see a 10x return on investment.
Despite Huang’s optimism, the question remains: Can Nvidia maintain its growth trajectory through 2026 and beyond, as tools like ChatGPT and Microsoft’s Copilot continue to transform industries?
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