Nvidia’s stock saw a muted reaction Thursday, rising less than 1%, despite reporting a 73% increase in revenue to $68.1 billion for the final quarter of 2025, and forecasting potential sales growth of up to 200% in the current quarter. The tepid response followed a Wednesday earnings call where CEO Jensen Huang asserted the current surge in demand for artificial intelligence technology, and Nvidia’s chips in particular, is not a temporary phenomenon.
Huang told investors that the fundamental shift towards AI-driven computing is irreversible. “This new way of doing computing is not going to go back,” he said, predicting continued expansion in capacity as businesses build out infrastructure. He framed the investment as necessary to meet a growing need for “token generation capability,” estimating the world will require far more than the $700 billion currently being budgeted by major hyperscalers.
More than half of Nvidia’s revenue now originates from a handful of large technology companies – the “hyperscalers” – including Google and Amazon, who are aggressively investing in AI data centers. Meta has pledged to nearly double its capital expenditures this year, projecting up to $135 billion in spending compared to $72 billion in 2025. Google plans to increase its capital expenditure from $91 billion to as much as $185 billion. Collectively, these major players are planning nearly $700 billion in capital expenditures this year, according to Huang’s assessment.
Analysts pressed Huang on the sustainability of this level of investment during the earnings call, questioning whether the remaining 50% of Nvidia’s customer base would be sufficient to maintain the spending spree. They also sought clarity on the applications that will drive continued demand for AI infrastructure. Huang pointed to the emergence of “agentic AI” – AI systems capable of autonomous action – as a recent catalyst for increased demand, noting an inflection point had been reached in the last two to three months. He also anticipates a future wave of demand driven by the integration of AI into robotics, and manufacturing.
“AI is here. AI is not going to go back. AI is only going to gain better from here,” Huang stated. This confidence comes as Nvidia CEO Jensen Huang is currently in Shanghai, navigating regulatory headwinds in China, Reuters reported Thursday. The visit underscores the importance of the Chinese market for Nvidia, even as the company faces scrutiny from Chinese authorities.
At CES 2026, Nvidia unveiled the Rubin platform, designed for accelerated computing and autonomous driving, and highlighted its commitment to open models, according to a company blog post. The announcements signal Nvidia’s continued focus on expanding its AI ecosystem beyond chip manufacturing. Nvidia’s Huang recently stated that markets “got it wrong” on the threat of AI to software companies, according to CNBC.
