NVIDIA executive: AI chip shipments are mainly used for capacity expansion, driving a surge in data center revenue

At the UBS Global Technology and AI Conference, NVIDIA Chief Financial Officer Colette Kress discussed that most new AI chip shipments are expanding data center capacity rather than replacing existing hardware, indicating strong net demand driven by AI adoption. This trend aligns with NVIDIA's performance in the third quarter of fiscal year 2026, where data center revenue grew over 150% year-on-year to reach $30.8 billion, primarily driven by major cloud computing companies like Microsoft and Amazon. McKinsey predicts that global AI infrastructure spending will reach $200 billion annually by 2025, which will solidify NVIDIA's market dominance while increasing energy demand