Nvidia chief executive officer Jensen Huang took a sanguine view towards the latest AI stock-market rout, saying the benefits of the technology will soon outweigh the concerns of investors.
“All of this is going to pass, and the reason for that is very simple,” Huang told Bloomberg’s Emily Chang during an event in Berlin.
“It’s going to be transformative. It’s going to impact in a very positive way every single industry and every single country. There’s no question it will continue, and we’re at the beginning of that.”
The remarks capped a tumultuous week for shares of chipmakers and AI infrastructure companies.
The closely watched Philadelphia Stock Exchange Semiconductor Index has now fallen for eight straight days, marking the longest losing streak since 2008.
Nvidia shares, meanwhile, have dropped during seven of the past eight sessions. Investors have expressed worry that AI spending is not sustainable at a time of higher borrowing costs.
All the while, Huang has stuck to upbeat predictions for the AI market and its impact on the broader economy. He expects the returns from massive investments in hardware to ultimately ease market jitters.
“With respect to some of the news, it’s choppy news,” he said. “News, as you know, happens all the time, but it won’t change the fundamentals.”
Nvidia is central to the global build-out of artificial intelligence infrastructure.
It is the biggest seller of AI accelerators, chips that are used to develop and run models. And it’s branched out into a variety of related hardware, software and services.
The latest selloff has taken a particular toll on CoreWeave, a cloud-computing services provider that counts Nvidia as one of its biggest backers.
The company’s bonds recently hit levels that typically signal distress, and the stock lost a quarter of its value this week.
Huang has repeatedly encouraged investors to look beyond near-term reports and concentrate on the long-range value of the technology.
“Stay focused on first principles,” he said during the interview. “Stay focused on the fundamentals.” BLOOMBERG
