By @SiliconANGLE
Publication Date: 2026-01-10 21:58:00
At CES 2026, Nvidia Corp. Chief Executive Jensen Huang once again reset the economics of artificial intelligence factories.
In particular, despite recent industry narratives that Nvidia’s moat is eroding, our assessment is the company has further solidified its position as the hardware and software standard for the next generation of computing. In the same way Intel Corp. and Microsoft Corp. dominated the Moore’s Law era, we believe Nvidia will be the mainspring of tech innovation for the foreseeable future.
Importantly, the previous era saw a doubling of performance every two years. Today Nvidia is driving annual performance improvements of five times, throughput of 10 times, and driving token demand of 15 times via Jevons Paradox.
The bottom line is that ecosystem players and customers must align with this new paradigm or risk a fate similar to that of Sisyphus, the beleaguered figure who perpetually pushed a rock up the mountain.
In this Breaking Analysis, we build on our prior work from Episode 300 with an update to our thinking. We begin with an historical view, examining the fate of companies that challenged Intel during the personal computer era and the characteristics that allowed a small number of them to survive and ultimately succeed.
From there, we turn to the announcements Huang (pictured) made at CES and explain why they materially change the economics of AI factories. In our view,…
