Nvidia CEO Jensen Huang said the current wave of AI infrastructure investment is sustainable and necessary, pushing back on investor concerns about overbuilding data center capacity.
“Demand is incredibly high,” Huang told CNBC, adding that AI enhancements will continue for seven to eight years. He characterized this initiative as “once-in-a-generation infrastructure development.”
The comments came as Nvidia stock rebounded sharply on Friday, rising as much as 7.5% in its biggest intraday gain since April. The gains added more than $300 billion to market value, partially reversing the $500 billion decline over the past week.
Investor sentiment improved after Amazon announced plans to spend $200 billion on data centers, chips and other infrastructure this year. Amazon, Alphabet, Meta, and Microsoft’s combined spending on AI infrastructure is expected to reach $650 billion in 2026, a 60% increase over last year.
Big tech stocks remain under pressure, but a surge in spending is lifting infrastructure providers across the AI supply chain.
Semiconductor stocks such as Broadcom and Marvell rose 6% and 7%, respectively, while digital storage companies SanDisk and Western Digital rose 4% and 7%. Cloud services company Coreweave soared 20%.
