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Jensen Huang projects $3T to $4T in AI data-center capex by decade end
Nvidia’s CEO said he expects global annual data-center capital expenditure to reach $3 trillion to $4 trillion, while Nvidia reported $75.2 billion in data-center revenue in its most recent quarter.
Nvidia CEO Jensen Huang told investors he expects global annual data-center capital expenditure to reach between $3 trillion and $4 trillion by the end of the decade, CNBC reported. Nvidia CFO Colette Kress also reiterated on the company’s first-quarter FY27 earnings call that the target is expected to be reached by the end of this decade.
The projection widens the gap versus Wall Street expectations for the pace of AI spending. Needham analyst Laura Martin, as cited by CNBC, said industry participants expect hyperscale cloud providers to reach about $1.03 trillion in annual capital expenditure by 2028, roughly four times lower than Huang’s figure.
Huang’s outlook also contrasts with another analyst view, where Bank of America analyst Vivek Arya projected the total addressable market for AI data-center systems at about $1.7 trillion by 2030, versus a prior estimate of $1.4 trillion, according to Investing.com.
Nvidia’s latest results underscore the current run rate: the company posted $81.6 billion in revenue in its most recent quarter, up 85% year over year, and data-center revenue jumped 92% to $75.2 billion, per its first-quarter fiscal 2027 results. Nvidia’s market capitalization was reported near $4.9 trillion, trading neck-and-neck with Apple.