Nvidia (NVDA) chief Jensen Huang said on a recent show with host Joe Rogan that the main limit for new AI growth is not chips. Instead, he said the main limit is power. He added that large tech firms may run small nuclear units near data hubs in six to seven years.
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At first he spoke about the fast rise in power use from new AI tools. Then he said the grid will not keep up with this rise. He said that firms may run compact plants on site that can feed steady power at high scale. He said this shift may help ease strain on local lines. He also said that extra power could move back to towns when it is not in use.
Meanwhile, Huang’s own company, Nvidia, dropped slightly on Friday, closing at $182.41.
Industry Plans Move Toward New Power Deals
The idea fits with fresh steps in the sector. In late 2024, Alphabet (GOOGL) said it would buy 500 megawatts from Kairos Power. The plan aims to have the first unit operational by 2030. Soon after, in mid-2025, Kairos Power and the Tennessee Valley Authority set the first deal for a next-stage plant in Oak Ridge. The small plant will send 50 megawatts to sites that serve Google’s data needs.
As firms add more cloud sites, fresh data shows why they look at new power plans. Goldman Sachs (GS) sees data hub use rising by 175% by 2030 from 2023 levels. The International Energy Agency sees global use reaching 945 terawatt hours by 2030, up from 415 terawatt hours in 2024. Both groups see the load on grids as a key trend for the next few years.
Is NVDA Stock a Buy?
On the Street, Nvidia continues to hold the analysts’ backing with a Strong Buy consensus. The average NVDA stock price target is $258.10, pointing to a 41.49% upside from the current price.
