Nvidia CEO’s AI Demand Comments Fuel Rally in Tech Stocks

Nvidia shares climbed 2.2% Wednesday as CEO Jensen Huang's bullish remarks on artificial intelligence computing demand ignited a sector-wide rally. The semiconductor leader's declaration of 'substantial' growth in AI needs over the past six months propelled peers Super Micro Computer and AMD up 6.6% and 11.4% respectively, easing concerns about an AI investment bubble.

Speaking to CNBC, Huang highlighted twin exponential factors driving demand: increasingly capable AI models and their expanding commercial applications. 'The AIs are smart enough that everybody wants to use it,' he noted, describing the current environment as the dawn of a new industrial revolution. His comments about 'really, really high' demand for Nvidia's Blackwell GPUs underscored the sector's growth trajectory.

While bullish on long-term prospects, Huang acknowledged emerging infrastructure challenges, particularly regarding energy supply constraints for power-hungry AI systems. The remarks come as tech investors increasingly view AI infrastructure plays as the new picks-and-shovels providers of the digital age.