‘All of this is going to pass’: Nvidia CEO Jensen Huang on AI market turmoil
The Philadelphia Stock Exchange Semiconductor Index has now fallen for eight straight days.
Nvidia chief executive officer Jensen Huang expressed optimism regarding the recent decline in the AI stock market. During an event in Berlin, Huang told Bloomberg’s Emily Chang that the market turbulence would eventually subside. "All of this is going to pass, and the reason for that is very simple," Huang emphasized. "It's going to be transformative. It's going to impact in a very positive way every single industry and every single country."
Huang’s confident statements came amid a challenging week for chipmakers and AI infrastructure companies. The Philadelphia Stock Exchange Semiconductor Index has experienced an eight-day losing streak, the longest since 2008. Additionally, Nvidia's shares have fallen during seven of the previous eight trading sessions. This downturn has raised concerns that AI spending might not be sustainable due to rising borrowing costs.
Despite the market volatility, Huang has maintained a positive outlook on the AI market and its impact on the global economy. He anticipates that the returns from substantial investments in hardware will eventually alleviate market concerns. Huang stated, "News, as you know, happens all the time, but it won't change the fundamentals." He advised investors to focus on the long-term value of the technology, urging them to stay committed to "first principles" and concentrate on the fundamentals.
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