Nvidia's CEO Jensen Huang spoke about the sustainability of AI spending during their Q4 call in February. He said the industry is hitting an "agentic AI" inflection point. Newer reasoning models require significantly more compute power than older systems, which translates to more GPU demand. He also noted that physical AI, like autonomous robots and vehicles, will be the next wave. Huang projects data center spending could reach $3 to $4 trillion annually by 2030, compared to around $1 trillion today. Nvidia believes they will maintain their lead because they optimize whole data center setups to provide the lowest cost per token and best performance per watt. They also have a strong software ecosystem that custom chips struggle to compete with. The stock has been flat over the last six months and is currently trading at 37 times earnings. Wall Street is estimating 38% annual earnings growth over the next three years.