Nvidia (NASDAQ: NVDA) anticipates that AI infrastructure spending will exceed $1 trillion over the next five years. CEO Jensen Huang highlighted that Nvidia will be a major beneficiary of this trend due to its dominant position in the GPU market, where the new Blackwell architecture shows promising advancements.
Recently, Nvidia’s Blackwell-based GB200 NVL72 system was reported to perform AI inference 30 times faster than its predecessor, the H100. Each GB200 GPU is projected to sell for $30,000 to $40,000. Nvidia’s Q2 FY2025 data center revenue reached a record $26.3 billion, an increase of 154% year-over-year, indicating sustained growth as major tech companies like Microsoft and Amazon ramp up AI-related capital expenditures.
Microsoft reported $55.7 billion in capex for fiscal 2024, with plans to increase this investment further. Amazon is projected to invest more than $60 billion in 2024, while Alphabet and Meta plan to invest around $50 billion and $40 billion, respectively. Huang confirmed that Blackwell is in full production, catering to immense demand from tech giants aiming for AI leadership.
