Jensen Huang, the CEO of chipmaker Nvidia (NVDA), stated that artificial intelligence has entered a “virtuous cycle” that will continue to drive growth across the tech industry. Speaking at the APEC CEO Summit in South Korea, Huang explained that better AI models are leading to more users and investment. That investment helps improve the models even more, which then creates a loop of rising demand and profits. In fact, big tech companies are expected to spend over $300 billion this year on AI and data centers, with even more spending planned for 2026.
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Importantly, Huang stressed that profits are the key reason why companies are investing so heavily in AI. Just like profitable chip production leads to more factories, profitable AI tools lead to more development. Additionally, he stated that AI is causing a major shift in computing, where every layer of technology, from hardware to software, is being rebuilt.
For example, traditional software runs on CPUs, whereas AI runs on GPUs. This changes everything from how programs are written to the chips and energy systems that power them. As a result, Huang believes that nearly every computer built in the last 60 years will eventually need to be replaced. Moreover, Huang said that AI won’t just be a tool, but it will also become something that can “work” on its own by powering fully automated factories.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Nvidia stock based on 36 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average Nvidia price target of $233.82 per share implies 15.3% upside potential.
