Nvidia CEO Jensen Huang Says Neocloud Demand Is Off the Charts but Working Capital Is the Bottleneck

Nvidia Chief Executive Officer Jensen Huang told CNBC and Bloomberg on Thursday that demand for neocloud companies is "off the charts," but a shortage of working capital is preventing that demand from translating into faster growth. Speaking on the sidelines of Nvidia's GTC conference in Berlin, Huang said neocloud fundamentals are strong and their compute capabilities "extraordinary," while pinpointing capital scarcity as the critical missing link: "The demand of the capital is much greater than the availability of the capital."

Huang expressed confidence the financing gap will eventually close, calling neoclouds a "good investment" and noting that the compute demand they serve is "incredible." He separately flagged energy allocation as a particular constraint for European neoclouds, citing higher electricity prices in the region and pointing to companies such as Nebius and Mistral as examples where access to power infrastructure is crucial. He argued that neoclouds in Europe must first establish their own infrastructure before broader investment can flow in effectively.