If you thought the AI frenzy was starting to cool off, think again. The most highly anticipated tech event of 2025 – Nvidia’s GPU Technology Conference (GTC) – just wrapped up in California. Dubbed the “Super Bowl of AI,” it brought together thousands of developers, engineers, researchers, and business leaders to discuss the future of artificial intelligence, computing, robotics, and beyond. And, as expected, Nvidia’s CEO Jensen Huang stole the show.
In his keynote, he didn’t just dismiss fears of an AI slowdown—he ‘obliterated’ them.
AI Needs 100x More Compute Than Expected
Jensen Huang kicked off the conference with a jaw-dropping statement:
“The scaling law of AI is more resilient, and in fact, hyper-accelerated, and the amount of computation we need at this point, as a result of agentic AI and reasoning, is easily 100x more than we thought we’d need at this time last year.”
That’s a major turnaround from just two months ago.
Remember when the emergence of China’s low-cost AI platform, DeepSeek, sparked panic among investors? The fear was that AI models would require fewer semiconductor chips and less computing power – leading to a massive AI stock sell-off.
Well, according to Huang, that was a huge misinterpretation:
“This last year, this is where almost the entire world got it wrong.”
And the proof? Nvidia’s latest Blackwell chips are flying off the shelves.
So far in 2025, Nvidia has already sold 3.6 million Blackwell GPUs – nearly triple the peak of 1.3 million Hopper GPUs sold in 2024. And that’s just to four major communications service providers (think AT&T, Verizon, etc.).
There’s still massive demand from companies like CoreWeave, Meta, xAI, and Tesla.
Demand is much greater than that, obviously,” Huang added.
Data Center Spending Is Accelerating – Not Slowing
Huang didn’t just talk about chips – he also made it crystal clear that investment in AI infrastructure is ramping up** faster than expected.
Initially, he predicted that global data center spending would hit $1 trillion by 2030. But at GTC, he moved that timeline up to 2028 – a staggering 3x growth in just three years.
That’s the opposite of what traders expected when DeepSeek made headlines.
So, what’s driving this surge?
Two Key Factors Are fueling the AI Expansion
AI’s Platform Shift Is Here – The world is now fully transitioning from traditional computing to AI-driven computing. This shift is accelerating demand for powerful AI infrastructure.
Big Tech Is All-In on AI Spending – The Magnificent Seven tech giants aren’t just talking about AI—they’re spending like never before.
In 2024, these companies spent $250 billion on capital expenditures (capex). But in 2025? That number is expected to soar past $330 billion—with Microsoft, Meta, Alphabet, and Amazon leading the charge.
And it’s not just the U.S. stepping up its game.
China’s biggest tech firms are racing to stay competitive:
Alibaba plans to invest $52 billion in AI over the next three years—more than it spent in the last decade.
Tencent is ramping up AI spending, aggressively buying more AI chips to stay ahead.
AI is just getting started—And so are the profits
We’re still only scratching the surface of what AI can do.
The next wave of AI won’t just be about chatbots and generative AI – we’re heading toward:
– Advanced reasoning models
– Fully autonomous AI agents
– Self-driving vehicles
– AI-powered robotics that make real-time decisions
These advancements require massive compute power – and that means the AI infrastructure boom isn’t slowing down anytime soon.
Translation? There are still plenty of AI profits up for grabs.
The key is knowing where to look.
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