Nvidia's Jensen Huang says tech's $700 billion AI capex is just the start of something far bigger | Fortune

"Nvidia delivered absolutely blockbuster results in the final three months of 2025, as demand for its AI chips went through the roof. Revenue increased an astounding 73% to $68.1 billion, and Nvidia said sales in the current quarter would expand by as much as 200%. If Nvidia's stock was up less than 1% after these heroic results, it's because there's a fundamental problem at play."

"More than half of Nvidia's revenue comes from the five big 'hyperscalers'—that is, the Googles and Amazons of the world—who are feverishly buying as many of Nvidia's GPU chips as they can to stuff in the massive AI data centers they're constructing. Many of these hyperscalers have vowed to double their capital expenditures this year as they build more data centers."

"His message to investors on Wednesday: Big Tech's massive spending on AI technology, particularly Nvidia's chips, is not anywhere near finished. 'This new way of doing computing is not going to go back,' he said, and businesses are 'going to be building out this capacity from this point forward and continue to expand from here.'"

Nvidia reported blockbuster Q4 2025 results with 73% revenue growth to $68.1 billion and projected 200% sales expansion, driven by hyperscaler demand for AI chips. However, the stock barely moved, revealing underlying concerns. Over half of Nvidia's revenue comes from five major hyperscalers—Google, Amazon, Meta, and others—who are aggressively building AI data centers. These companies are dramatically increasing capital expenditures, with Meta planning $135 billion and Google $185 billion in 2026, totaling nearly $700 billion across hyperscalers. CEO Jensen Huang insists this spending trajectory will continue indefinitely, but fundamental questions persist about the sustainability of such unprecedented capital deployment and whether current valuations reflect realistic long-term returns.

Read at Fortune