Nvidia CEO calls AI stock sell-off a temporary setback
Nvidia CEO Jensen Huang said the current decline in shares of artificial intelligence companies will not change the industry's long-term prospects. He believes the economic returns from massive AI investments will eventually outweigh investor concerns.
Huang made the remarks in an interview with Bloomberg during an event in Berlin. He emphasized that the technology is still in its early stages of development and will continue spreading across all sectors of the economy.
"All of this is going to pass, and the reason is very simple," the Nvidia chief said, commenting on market volatility.
According to Huang, artificial intelligence will have a positive impact on every industry and every country.
Chip stocks fall for eight consecutive sessions
Huang's comments came amid a prolonged sell-off in technology stocks. The Philadelphia Stock Exchange Semiconductor Index declined for eight consecutive trading sessions, its longest losing streak since 2008.
Shares of Nvidia itself fell in seven of the last eight sessions. Investors are concerned that spending on AI infrastructure could prove excessive amid high borrowing costs.
CoreWeave, a provider of cloud computing capacity, was particularly hard hit. Its shares lost approximately 25% over the week, while its bonds fell to levels indicating heightened credit risks.
Nvidia remains the largest supplier of accelerators used to train and run AI models. The company also develops related software, hardware and services.
Huang urged investors not to place too much emphasis on short-term news and instead focus on the industry's fundamentals. He believes future revenues from AI adoption will justify current investments in computing capacity.
Nvidia continues investing in Europe's AI market
Despite the decline in its share price, the company is maintaining its international expansion plans. In particular, Nvidia is increasing its investment activity in Europe and supporting developers of emerging AI technologies.
Huang is also continuing discussions with European companies and government officials about adopting artificial intelligence across various industries.
As part of this strategy, Nvidia is expanding its investments in British startups. During a visit to London before traveling to Berlin, the company's CEO backed further funding for local AI developers.
In the same week, Nvidia pursued similar investment initiatives in France. The company aims to strengthen its presence in the European market not only as a hardware supplier but also as an investor in technology projects.
Earlier, we reported that Germany is preparing an agreement with Nvidia on artificial intelligence cooperation. The initiative aims to introduce AI technologies into the country's industrial sector.
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