Nvidia CEO Jensen Huang said the massive capital expenditure on artificial intelligence is both “appropriate” and “necessary” as the industry undergoes a “once in a generation infrastructure buildout” that will continue for several years. Speaking on Friday, Huang stated that the AI buildout has “seven to eight years to go” and emphasized that “AI is going to fundamentally change how we compute everything.” The CEO’s comments helped propel the stock to close 7.9% higher, its best day since April 2025.

The tech executive noted that demand for Nvidia’s products is “sky high” and pointed out that GPUs sold six years ago are increasing in price, highlighting the sustained market interest in AI hardware. Huang specifically mentioned that AI companies like Anthropic and OpenAI are “making money” but remain “computer constrained,” indicating they need more computing resources to expand their operations. He added that “there’s no drama with OpenAI” and stressed that the company needs Nvidia’s new generation chips.

Regarding competition, Huang acknowledged that China is undoubtedly a competitor but maintained that it “makes no sense to concede China market if you want to win globally.” When discussing companies utilizing AI technology, Huang singled out Meta, saying “no one uses AI better than Meta.” He also mentioned that his biggest concern is “AI being effective.”