Nvidia CEO Jensen Huang Drops a Bombshell on AI Spending

Nvidia (NVDA) CEO Jensen Huang has a message for investors worried about hyperscaler AI spending: The boom is nowhere near over.

Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOG) (GOOGL) continue to pour billions into data centers, but some investors fear those enormous capital expenditures could eventually peak and pressure Nvidia’s growth.

Huang sees the opposite. Nvidia expects AI infrastructure spending to keep expanding as enterprises, sovereign buyers, startups, and hyperscalers build increasingly powerful computing systems. The company has even teamed up with Apollo (APO), BlackRock (BLK), Blackstone (BX), Brookfield (BN), Goldman Sachs (GS), and KKR (KKR) to help mobilize more than $500 billion of third-party capital for AI infrastructure. 

That matters because Nvidia is no longer simply selling GPUs. It is increasingly positioning itself at the center of the entire AI infrastructure buildout.

Nvidia Stock Is Back in the Spotlight

Nvidia's stock has gained roughly 18% year-to-date (YTD) in 2026. The biggest driver remains AI demand. Nvidia’s latest Blackwell products are ramping up, while the Vera Rubin platform is setting up the company's next major product cycle.

Still, investors spent much of the year worrying about whether hyperscaler spending could eventually slow. Competition from custom AI accelerators and mounting concerns about Nvidia's exposure to a handful of major customers also weighed on sentiment.

The latest earnings report appears to have changed that narrative.

Nvidia is trading much more cheaply than its historical valuation. Its trailing price-to-earnings (P/E) ratio is roughly 33 times earnings, and its forward P/E is near 26 times. Its PEG ratio is around 0.44. 

A company growing revenue at double-digit rates would normally command a substantial premium. Nvidia, however, is delivering growth closer to triple digits while its forward valuation remains considerably more moderate than during earlier phases of the AI rally.

The $500 Billion AI Financing Opportunity

Nvidia's Aug. 10 financing initiative could ultimately become one of the company's most important strategic moves.

The company partnered with six major financial institutions to establish AI compute financing platforms capable of mobilizing more than $500 billion of third-party capital over time. The goal is to make AI infrastructure a more accessible and investable asset class. 

For Nvidia, the logic is straightforward.

Building AI data centers requires enormous amounts of capital. By helping bring institutional money into the equation, Nvidia can potentially reduce financing constraints that might otherwise slow GPU deployments.

It also broadens Nvidia's role in the AI ecosystem. The company can sell GPUs, networking equipment, and software while supporting the infrastructure needed to deploy them at scale.

That is why Huang's view that “compute is revenue” is so essential. As AI applications become more commercially useful, the amount of computing needed to run them could continue rising.

Nvidia Just Delivered Another Blowout Quarter

Nvidia's fiscal second-quarter 2027 results made the bullish AI argument difficult to ignore.

Revenue reached $96.2 billion, up 106% year-over-year (YoY) and 18% from the prior quarter. Data Center revenue climbed 117% to $89.0 billion, accounting for more than 92% of total sales. Non-GAAP EPS came in at $2.22, versus Wall Street expectations of roughly $2.09. 

CEO Jensen Huang summed it up perfectly on the earnings call: “AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue.”

He added: “The AI infrastructure buildout is at full steam. Vera Rubin, now in full production, was built to power exactly this moment.”

Management also guided for fiscal third-quarter revenue of approximately $108 billion, plus or minus 2%.

Even more striking, Nvidia indicated that fiscal 2028 revenue could grow roughly 70%, dramatically above the growth rate investors had been expecting. Reuters noted that the company remains supply constrained even as demand accelerates, particularly because of memory component shortages.

Wall Street Remains Bullish on NVDA Stock

The latest data remains strongly supportive of Nvidia. NVDA stock has a “Strong Buy” consensus with an average price target of about $324. Against a recent price that represents roughly 49% upside. The low target is $180, while the high target reaches $515.

Several firms have raised their targets following the latest earnings report. Bank of America, for example, maintains a “Buy” rating and a $350 target, while other analysts have highlighted the strength of demand for Rubin and Nvidia's expanding role across AI infrastructure.

Similarly, Goldman Sachs reiterated its “Buy” rating with a $285 target. Analyst James Schneider expects a strong product ramp for Rubin in the second half of the year. He's betting on continued gross margin strength and upside from agentic AI.

The bullish argument is increasingly simple: If AI spending keeps expanding, Nvidia remains one of the clearest ways to monetize that spending. And after another massive earnings beat and an unusually strong growth outlook, Jensen Huang has given investors little reason to believe the AI infrastructure cycle is close to finished.