At the annual shareholders meeting held yesterday (June 24), Nvidia CEO Jensen Huang outlined an ambitious blueprint for expanding AI infrastructure.
Jensen Huang stated that the AI industry has entered a new phase, with Agent AI (AI systems capable of autonomously performing tasks and making decisions) already here, and Physical AI driving Nvidia’s next round of growth. He likened data centers to “AI factories,” emphasizing that AI infrastructure has become the core of enterprise computing.
Note: Physical AI refers to artificial intelligence that has a physical form and can perceive and perform actions in the real world. It is also widely known as embodied AI or physical AI.
Jensen Huang stated that more and more companies are beginning to deploy physical AI, covering robots, autonomous vehicles, and industrial automation systems, which will become Nvidia’s next growth opportunity.
Jensen Huang stated that advanced AI data centers are not simply a collection of scattered hardware components. In real-world applications, they require the construction of trusted hardware, software, networks, and ongoing support to form a large-scale integrated system. Therefore, in his view, piecing together a data center using a small number of smuggled products is a dead end.
Regarding returns on investment, Jensen Huang emphasized to shareholders that the question of AI investment returns “already has been answered.” He stated that when AI output can directly create value—for example, when writing code and running NVIDIA systems to generate tokens—it becomes profitable, and companies will therefore require more computing power. He cited the example of GitHub, where the number of pull requests has almost tripled this year.
In terms of finance, Huang disclosed that Nvidia’s revenue grew by 65% and operating profit grew by 60% in the past year. The market demand for AI infrastructure and computing platforms continues to expand, and Nvidia continues to benefit from investments in AI chips, data centers, and enterprise AI applications.
Nvidia’s free cash flow exceeded $96 billion in fiscal year 2026. Jensen Huang reiterated that the company plans to return 50% of its free cash flow to investors through share buybacks and dividends in the coming years.
