Nvidia Shares Rise After CEO Signals Confidence in AI Spending

New York: Shares of Nvidia rose sharply on Friday after the company’s chief executive said the technology industry’s heavy spending on artificial intelligence infrastructure is sustainable.

The stock closed nearly 8% higher following comments from Chief Executive Jensen Huang, who said demand for advanced computing continues to grow and is supporting large-scale investment.

Huang said companies investing in AI are generating stronger cash flows, allowing them to continue expanding data centres and computing capacity.

Major Tech Firms Boost Spending

Nvidia’s largest customers, including Meta, Amazon, Google, and Microsoft, have recently reported plans to increase spending on AI infrastructure.

Together, the companies are expected to spend up to $660 billion this year on capital expenditure, much of it linked to artificial intelligence and cloud computing.

Demand Remains Strong

Huang said demand for Nvidia’s chips remains high across both new and older products, with many customers continuing to rent earlier-generation processors for AI workloads.

He also said leading AI developers OpenAI and Anthropic continue to expand their use of Nvidia-powered infrastructure through cloud providers.

As long as companies are able to earn revenue from AI services, Huang said investment in computing power is likely to continue.