Jensen Huang tells investors the AI sell-off will pass

As AI-related shares slide, Jensen Huang says the market’s latest jitters will not change the technology’s fundamentals. The NVIDIA chief executive is urging investors to look past the turbulence, even as chip stocks suffer a lengthy losing streak.

Jensen Huang Watch analysis

What happened

Huang told Bloomberg’s Emily Chang at an event in Berlin that the sell-off would pass and AI would have a positive impact across industries and countries. He described recent market news as “choppy” and urged investors to stay focused on fundamentals.

The Straits Times reports that the Philadelphia Stock Exchange Semiconductor Index had fallen for eight consecutive days, its longest losing streak since 2008, while NVIDIA shares had dropped in seven of the previous eight sessions. Investors are questioning whether AI spending can be sustained amid higher borrowing costs. CoreWeave, a cloud-computing provider backed by NVIDIA, also lost a quarter of its stock-market value that week, and its bonds reached levels typically associated with distress.

Why it matters

Huang is making the case that the current market wobble does not undermine the long-term value of AI. That is a consequential view from the head of a company central to the supply of AI accelerators, and one whose fortunes are closely tied to continued investment in the technology.

But confidence in AI’s potential and confidence in the returns from current spending are not the same thing. The reported falls show investors are weighing the cost of the build-out against the prospect of future gains. Huang’s optimism is a clear signal of his position, not proof that the market’s concerns are misplaced.

Our read

Huang is asking investors to judge AI by its long-term prospects, not a bad week for technology shares. Fair enough, but “transformative” is a promise about where the investment leads, not an answer to whether today’s spending will pay off. The receipts matter as much as the vision.

What to watch

• Whether AI companies show returns that justify the scale of current infrastructure spending.
• Whether semiconductor and AI-infrastructure shares recover, or investor concern spreads.
• What Huang and NVIDIA say about the financial case for the build-out as it develops.

Discussion spark: Should investors give AI infrastructure spending time to prove its value, or do falling shares show that the industry needs to justify its costs now?

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