Zaid

Google also said something similar in their earnings call.

So I know these CapEx numbers are huge, but as long as these companies are seeing an ROI on their CapEx spend, which it looks like they are now, they're not gonna slow down spending anytime soon.

And I think investors are gonna be okay with it.

Again, as long as revenue is accelerating.

The reality is the more money these companies spend, a lot of that's going to trickle to Nvidia because they still have the best AI chips.

In fact, Nvidia has outlined a $500 billion cumulative revenue opportunity across its Blackwell and upcoming Rubin chip platforms.

Based on recent order trends, Nvidia says that it's already tracking ahead of the demand assumptions it provided just a year ago.

So demand has been stronger than they projected themselves.

Now, remember what I said earlier that Nvidia is starting to face competition, especially when it comes to inference chips.

Well, the Wall Street General just reported that Nvidia is working on a chip specifically designed for inference computing.

For this new inference chip, they've incorporated technology from a startup called Grok that Nvidia essentially acquired last year for $20 billion.

Now, this chip hasn't even come out yet, and OpenAI has already agreed to be one of the largest customers of this chip.

So, Nvidia saw the inference threat from AMD and others, and they're moving to address it head-on.

Next, let's talk about agentic AI.

On the earnings call, CEO Jensen Huang declared that agentic AI inflection point has arrived, and he called it the next chat GPT moment for the industry.

Now, what agentic AI refers to is AI systems designed to execute complex, multi-step tasks with limited human supervision.

These are AI systems that don't just answer questions, they actually take action.

These AI systems could be used to monitor patient data in hospitals and flag issues, or detect cybersecurity threats and respond in real time, or maybe manage entire supply chains autonomously.

And the reason why the rise of AI agents matter for NVIDIA is up until now, NVIDIA's revenue growth had been heavily concentrated amongst a handful of hyperscalers.

But Agentech AI is expanding AI adoption into the enterprise world.