Nvidia Rallies as CEO Calls $660 Billion AI Investment Sustainable
Santa Clara, Friday, 6 February 2026.
CEO Jensen Huang’s defense of a $660 billion AI infrastructure boom sparked an 8% rally, adding over $300 billion in market value as he predicted seven more years of growth.
Defying the Skeptics
The sharp reversal in market sentiment occurred immediately after Nvidia CEO Jensen Huang appeared on CNBC to quell growing fears regarding the return on investment for artificial intelligence infrastructure [2]. Following a week where the chipmaker lost $500 billion in value, Friday’s trading session saw a dramatic turnaround, with the company adding over $300 billion in market capitalization in a single day [8]. This surge represents a recovery of 60% of the losses sustained during the recent selloff, driven by Huang’s assurance that the industry’s capital expenditure—projected to reach as high as $660 billion—is not a bubble, but a critical modernization of global computing systems [1][8].
Hyperscalers Double Down
The crux of the anxiety has centered on the sheer volume of spending by major tech players. However, new data confirms that the largest hyperscalers—Amazon, Alphabet, Meta, and Microsoft—are accelerating, not braking. Their combined spending on AI infrastructure is expected to hit $650 billion in 2026, marking a significant 60% increase from the previous year [8]. Amazon alone has announced plans to deploy $200 billion this year toward data centers and chips [8]. Huang contextualized this massive outlay by explaining that these companies are in the early stages of a transition from general-purpose computing to accelerated computing, arguing that as their cash flows rise, the reinvestment in infrastructure is mathematically justified [2][4].
Demand Meets Reality
Addressing concerns about profitability, the Nvidia chief highlighted that key AI developers like Anthropic and OpenAI are already generating significant revenue but remain “computer constrained” [5]. According to Huang, if these companies had access to double the computing power, their revenues could potentially quadruple, validating the need for immediate hardware expansion [2]. He described the current environment as a “once in a generation infrastructure buildout” that is nowhere near completion, predicting that the construction of these AI data centers will continue for another seven to eight years [5][8]. This timeline suggests that the demand for Nvidia’s graphics processing units (GPUs) is unlikely to plateau in the near term, a sentiment reinforced by the fact that even six-year-old chips are currently seeing price increases due to “sky high” demand [5].
Sector-Wide Resurgence
The bullish commentary from Nvidia’s leadership lifted the broader semiconductor sector, which had been under pressure alongside the major tech indices. As confidence in the longevity of the AI spending boom was restored, other infrastructure providers saw significant gains on Friday [8]. Semiconductor peers Broadcom and Marvell climbed 6% and 7% respectively, while digital storage manufacturers Western Digital and Sandisk posted gains between 4% and 7% [8]. The most dramatic movement outside of Nvidia was seen in cloud services firm CoreWeave, which surged 20%, signaling that investors are once again willing to bet on the entire AI supply chain [8].