Nvidia's CEO is openly admitting AI barely worked until recently, and that shift is why he and other bulls think the spending boom has much further to run.

• Nvidia's Jensen Huang said AI technology "barely worked" as recently as six months ago, but has since improved enormously across coding, video editing, legal work, HR, and customer service.
• Huang pushed back on the idea that only OpenAI and Anthropic are funding the AI buildout, arguing ordinary businesses are now spending heavily too, which broadens and extends the boom.
• Nvidia already has orders stretching into 2028 and 2029 for next-generation chips (including the unreleased Vera Rubin Ultra), showing customers have long-term confidence despite not having tested the product yet.
• Wall Street's earnings estimates for Nvidia have been revised sharply higher this year as the AI improvements translate into real demand, with forecasts for 2029 now far above earlier estimates.
• Based on growth-adjusted valuation math, Nvidia and AMD both look undervalued relative to their expected growth, with Nvidia seen as the cheaper of the two.

Outlook: As long as the job market holds up, rising business spending on AI chips is expected to keep pushing these stocks higher over the next few years.