Nvidia stock has bounced back, rising about 4%, but one key question remains for investors: Can artificial intelligence generate enough revenue to justify the company’s significant spending on GPUs and AI hardware?
CEO Jensen Huang addressed this during Nvidia’s earnings call in August, but it didn’t sway Wall Street, with shares dropping post-report.
Huang took another shot at answering investor concerns at a Goldman Sachs event, emphasizing its AI-driven ROI.
He explained that infrastructure investments are paying off as every dollar spent on Nvidia’s GPUs translates to $5 in rentals globally, with demand outpacing supply. Huang also highlighted how AI is boosting productivity internally, with Nvidia’s software engineers using co-generative AI tools across the company’s projects.
Regarding costs, Huang acknowledged that while GPU usage increases customer expenses, it cuts computing time significantly, yielding a 10x return on investment.
But the big question remains: Will Nvidia sustain strong revenue growth into 2026, as AI tools like ChatGPT and Microsoft’s Copilot continue to reshape productivity?
