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Feb 06, 2026
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LONG
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Despite market fears over spending, Huang argues that demand is "sky high" and the spending is appropriate. We are in the "largest infrastructure buildout in human history." AI is not just a feature; it is fundamentally changing how computing works (from search to shopping to movie recommendations). Therefore, the massive Capex spending by Nvidia's customers is a requirement, not a mistake. Huang cites a fundamental shift in computing architecture as the driver for demand. If the hyperscalers (AMZN, MSFT, etc.) pull back on spending due to shareholder pressure, Nvidia's revenue would take a direct hit. |
CNBC
Megacap tech stocks sells off as AI spending ...
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Feb 06, 2026
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LONG
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The Guest Investor defends the massive CapEx spending ($660B combined) by comparing it to Amazon investing in AWS in 2008. Jensen points to Meta specifically, noting their earnings have already moved because AI improved their ad targeting and recommendations. The market views high spending as "burning cash," but the speakers view it as "digging a gold mine." You must spend upfront to extract the gold (intelligence/tokens). Once built, these platforms will generate significantly higher cash flows, similar to how AWS became a profit engine for Amazon. Meta's earnings growth driven by AI recommender systems; AWS currently generating $30B/year in profit from investments made in 2008. If the "gold mine" is empty—meaning if AI applications do not generate the expected revenue to justify the upfront cost. |
CNBC
Nvidia CEO Jensen Huang: AI is going to funda...
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Feb 06, 2026
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LONG
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Both companies are described as having crossed an inflection point where AI is no longer just "curious" but "super useful" and profitable. These companies are currently compute-constrained. If they had twice the hardware, their revenue would quadruple. They are generating "profitable tokens," meaning the cost to produce the AI output is lower than the value they sell it for. Described as "$20 billion run rate companies" with accelerating growth and profitable revenues. These are private assets (hard to access) and face intense competition from open-source models. |
CNBC
Nvidia CEO Jensen Huang: AI is going to funda...
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Feb 06, 2026
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LONG
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Jensen states we are in a "once in a generation infrastructure build-out." The Guest Investor notes that Nvidia is their largest public position and they want their net worth "levered against AI." Demand is stripping supply. Jensen notes a critical distinction from the Dot-com crash: there is no unused inventory ("dark GPUs"). Every GPU is rented, and demand is so high that even obsolete hardware (sold 6 years ago) is appreciating in value. "Demand is sky high." "100% of the GPUs are rented." Regulatory hurdles or a sudden ceiling in AI model scaling capabilities. |
CNBC
Nvidia CEO Jensen Huang: AI is going to funda...
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