Jensen Huang says Physical AI will drive Nvidia's next growth, AI infrastructure ROI is clear

Nvidia CEO Jensen Huang told the annual shareholder meeting that AI has entered a new phase. Agent AI and Physical AI will drive the company's next growth wave. Physical AI means AI that has a body and can sense and act in the real world, like robots, self-driving cars, and factory automation.

Huang said building a real AI data center is about creating a massive, all-in-one system, not just throwing together random hardware. He thinks trying to piece together a data center with smuggled parts is a dead end. On investment returns, he said the answer is clear: when AI output creates real value, running Nvidia systems becomes profitable, and companies will need more computing power.

Nvidia's revenue grew 65% and operating profit grew 60% in the past year. Its free cash flow for fiscal 2026 is over $96 billion. Huang confirmed the company plans to return 50% of free cash flow to investors through stock buybacks and dividends in the coming years.