Tech companies are spending an unprecedented $700 billion this year on AI data centers. Nvidia’s Jensen Huang says we’re not anywhere near the peak

Nvidia CEO Jensen Huang’s comments on his company’s Q4 earnings call on Wednesday may one day be remembered as the peak of the AI bubble—the classic moment that occurs in every bubble when hubris and self-delusion overtake common sense.

For that not to be the case, it would mean that, beginning in 2026, the U.S. embarked on one of the greatest and most unprecedented economic expansions in history.

It’s a scenario that Huang clearly believes in. 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 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 (Nvidia didn’t ex...