Full Breakdown
Nvidia CEO Jensen Huang Calls AI Stock Sell-off a Temporary Phenomenon
By Drooid · · How we work
Market Turmoil and Core Metrics
The Philadelphia Semiconductor Index has logged eight consecutive losing sessions—the longest streak since 2008—and closed down 3.83% at 11,137.29. Nvidia shares have declined in seven of the past eight trading days. The sell-off has also pressured CoreWeave, an AI-cloud provider in which Nvidia is the second-largest shareholder; its five-year credit-default-swap premium reached an all-time high, signaling a greater-than-60% probability of default within five years, and its stock fell roughly 25% over the week.
Huang’s Remarks and Outlook
Speaking with Bloomberg’s Emily Chang at an event in Berlin, Jensen Huang, Nvidia chief executive, framed the market dip as a short-term blip. He emphasized that the fundamentals of artificial-intelligence investment remain intact and that the sector is still at the early stage of a transformative wave. Huang urged investors to “stay focused on first principles” and to look beyond immediate news cycles, asserting that the broader benefits of AI will eventually outweigh current concerns.
Background to Investor Concerns
The turbulence follows heightened borrowing costs that have prompted analysts to question the sustainability of massive AI-infrastructure spending. While Nvidia dominates sales of AI accelerators and has expanded into related hardware, software, and services, the broader chip market has shown heightened sensitivity to debt-service pressures, amplifying skepticism about near-term profitability for companies like CoreWeave.
Official Statements & Responses
His comments briefly lifted CoreWeave shares and provided modest support to U.S. equities, though semiconductor stocks remained broadly weak.
Verbatim Quotes
- “All of this is going to pass, and the reason for that is very simple,” — Jensen Huang, nvidia CEO