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Nvidia CEO Jensen Huang optimistically responds to recent AI stock plunge: Everything will pass
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Facing the recent sharp decline in AI concept stocks, Nvidia CEO Jensen Huang remains optimistic. He believes that the positive impact brought by AI will soon outweigh investors' concerns. Huang said: "Everything will pass; the logic is simple. AI will bring profound changes, with a very positive impact on all industries and every country. There is no doubt that this process will continue, and everything has only just begun."
Before Huang made these remarks, the chip and AI infrastructure sectors had experienced a turbulent week. The Philadelphia Semiconductor Index fell for 8 consecutive trading days, the longest losing streak since 2008. Nvidia also closed lower on 7 of the past 8 trading days. As borrowing costs rise, investors have begun to worry about whether the massive spending in the AI field can be sustained.
Huang has always been bullish on the AI market outlook and on AI's role in driving the overall economy. He expects that the returns ultimately brought by large-scale hardware investment will help calm market concerns. He said: "Some recent news has indeed triggered market volatility. Everyone knows that news comes every day, but these developments will not change the fundamentals."
According to IT Home, CoreWeave, a cloud computing service provider backed by Nvidia investment, was particularly hard hit in this round of selloff. CoreWeave's bond prices recently fell to levels typically seen as a signal of financial distress. Its stock price also shrank by about a quarter this week.
Huang has repeatedly reminded investors not to be swayed by short-term news, but to focus on the long-term value of AI technology. In an interview, he once again emphasized: "Always focus on first principles. Always focus on fundamentals." This statement continues his previous judgment on the long-term prospects of AI.
From Huang's remarks, he has not changed his judgment on AI because of short-term market fluctuations. He reiterated that AI will bring profound changes and have a very positive impact on all industries and every country. In his view, this process will continue, and everything has only just begun.
Huang expects that the returns ultimately brought by large-scale hardware investment will help calm market concerns. He also emphasized that news comes every day, but it will not change the fundamentals. For investors, his advice is to focus on first principles and fundamentals.
