By Radek Strnad
Publication Date: 2026-02-06 20:50:00
Shares of leading designer of graphics chips Nvidia (NASDAQ:NVDA) jumped 7.8% in the afternoon session after CEO Jensen Huang declared that the $660 billion tech industry investment in AI infrastructure is sustainable and justified.
Addressing concerns over aggressive spending by “hyperscalers” like Meta and Microsoft, Huang argued that these massive capital expenditures are supported by rising cash flows and “sky-high” demand. He framed the current expansion as the largest infrastructure buildout in history, where massive investments in computing power are essential to fuel the next generation of digital services and corporate profitability.
The rally was further supported by evidence of high hardware utilization and clear monetization pathways. Huang noted that even older chips remain fully rented out, while AI labs like OpenAI see revenue grow exponentially compared to their compute capacity.
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Nvidia’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 17 days ago when the stock dropped 3.8% on the news that rising geopolitical tensions between the US and Europe over control of Greenland sparked a broad, risk-off mood in asset…