Did Nvidia CEO Jensen Huang Just Pull Off His Most Brilliant Move Yet?

"NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) CEO Jensen Huang runs the world's largest company and his placement on the 'Mount Rushmore' of tech leaders is all but secured. Yet, what we're seeing across the past six months might be his greatest work to date, and last night provided another coup for NVIDIA. Yesterday, Meta Platforms (NASDAQ:META) announced a massive AI infrastructure partnership with NVIDIA, committing billions to GPU purchases as Meta spends $115-135 billion in capital expenditures this year."

"Heading into 2026, Wall Street was fixated on one existential question: would hyperscalers abandon NVIDIA for custom ASICs? Meta, Google, Amazon, and Microsoft are all building their own chips to reduce GPU dependence. Companies aligned with Google's 'TPU' complex have seen their shares soar. Amazon mentioned their homegrown Trainium chip 27 times on their most recent earnings call. Broadcom (NASDAQ:AVGO) emerged as the poster child for this shift, with analysts betting on custom silicon displacing general-purpose GPUs."

"Huang repeatedly pushed back throughout 2025. On the Q3 FY2026 earnings call, he emphasized that "Blackwell sales are off the charts, and cloud GPUs are sold out," arguing ASICs were harder to deploy than expected and poorly suited for rapidly evolving AI workloads. The market remained skeptical. Broadcom's stock climbed as investors bet on the ASIC thesis, while NVIDIA faced questions about the sustainability of its dominance."

Jensen Huang leads NVIDIA, now the world's largest company, and recent events have reinforced the company's market position. Meta Platforms committed billions to purchase NVIDIA GPUs as part of a major AI infrastructure partnership while guiding $115–135 billion in capital expenditures. Hyperscalers pursued custom ASICs to reduce GPU dependence, elevating Broadcom as a potential disruptor. NVIDIA argued that ASICs are harder to deploy and poorly suited for rapidly evolving AI workloads, citing strong Blackwell demand and cloud GPU sell-outs. Meta's commitment sent NVIDIA shares higher and weakened the narrative that custom silicon would displace general-purpose GPUs.

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