Nvidia CEO talks AI "Big Picture" at Davos

January 22, 2026

Jensen Huang, CEO of Nvidia, spoke at Davos yesterday.  And no surprise to anyone, he was bullish about the future.  His bullish comments are helping the AI stocks rally higher today.

As a reminder, in 2026 outlook, our #1 most important question for the stock market is:  “how sustainable is AI growth?”   His Davos speech gave us some clues.

Importantly, he dismissed the notion of an “AI bubble”, saying that infrastructure investment is still just at the beginning.  Currently, hundreds of billions have been invested, but it will eventually be in the “trillions”

He spoke about AI in broad sense and called on the world to continue investing.  He described the AI environment as “five layer cake”.

These layers include:

(1) The bottom layer is energy, needed to power the rest of the stack.

(2) The second layer is “chips and computing”, where Nvidia operates.

(3) The third layer is cloud infrastructure, providing computing as a service.

(4) The fourth layer is AI models, such as ChatGPT, Claude, and Gemini. This is the layer that that public sees.

(5) The top layer is the “application” layer.  This is where industries such as finance, healthcare, manufacturing, etc must build to create the bulk of the economic value from AI.

Then, most important for stock market folks, speaking about the current demand for AI chips, he remained bullish.  He said: 

If you want to rent a NVIDIA GPU, it will be very difficult. The spot rental prices of GPUs are rising, not only for the latest generation but also for the previous two generations. The reason is that the number of newly established AI companies is huge, and more and more companies are shifting their R & D budgets to AI. Eli Lilly is a typical example: Three years ago, its R & D budget may have been mainly allocated to traditional wet laboratories, but now they have

invested in large - scale AI supercomputers. More and more R & D budgets are tilting towards AI.

If there’s one thing that stock market analysts love, it’s to hear the words: “strong pricing power”.  For the moment at least, Nvidia has still got it.