Philadelphia Semiconductor Index Experiences Longest Losing Streak Since 2008; Jensen Huang Responds Calmly: Short-term Fluctuations Won't Change AI's Long-term Growth Prospects

According to Zhitong Finance APP, despite the recent sell-off in artificial intelligence (AI)-related stocks, NVIDIA (NVDA.US) CEO Jensen Huang remains confident in the long-term prospects of the AI industry. He stated that although the market currently has concerns about the sustainability of AI investments, as the technology gradually demonstrates its potential to transform the global economy, investor skepticism will eventually fade.

In an interview at an event in Berlin, Germany, Huang said: "All of this will pass, for a very simple reason. AI will bring about transformation and have a very positive impact on every industry and every country. Without a doubt, this trend will continue, and we are only at the beginning."

Huang made these remarks as AI-related stocks across the global supply chain are undergoing significant adjustments. Over the past week, chipmakers and AI infrastructure companies have seen continued stock pressure, raising concerns about whether the current investment boom in AI can be sustained.

Data shows that the closely-watched Philadelphia Semiconductor Index has fallen for eight consecutive trading days, marking the longest losing streak since 2008. Meanwhile, NVIDIA's share price has dropped on seven out of the past eight trading days, reflecting a clear decrease in investor appetite for risk in AI-related stocks. One main reason for the recent sell-off is that investors are beginning to question whether technology firms can maintain such substantial AI capital expenditures in the long run, especially with financing costs remaining high.

As major global tech companies continue pouring massive amounts of capital into building AI data centers, the market is increasingly focused on when these investments will yield sufficient revenue and profit, and whether the companies can sustain their pace of expansion in a high interest rate environment. AI cloud computing provider CoreWeave (CRWV.US) has been one of the most severely impacted firms in the recent sell-off.

As an AI cloud computing company heavily backed by NVIDIA, CoreWeave has recently faced investor concerns about its debt load and financing capacity. Some of the company's bonds have fallen to levels often seen as signals of financial distress, and its share price has plunged around 25% this week. Pressure on both CoreWeave's stocks and bonds has further intensified market worries regarding AI infrastructure construction's heavy reliance on external financing.

However, Huang does not believe the recent market volatility signifies a fundamental change in the long-term growth logic of the AI industry. He stated that investors should distinguish between short-term news and long-term fundamentals. "There has indeed been some unsettling news lately. As everyone knows, news happens every day, but these do not change the fundamentals."

As the world's largest supplier of AI accelerators, NVIDIA sits at the heart of global AI infrastructure construction. Its AI chips are widely used in large-scale model training and deployment, while the company has also expanded into related hardware, software, and services in recent years.

As AI technology continues to spread across industries, NVIDIA not only benefits from major tech corporations' investments in computational infrastructure but also stands to gain from long-term growth in computing demand driven by AI application proliferation.

Huang believes the market is currently too focused on the massive upfront costs required for AI infrastructure, potentially underestimating the future economic returns these investments can generate.

In his view, as AI gradually changes business operations, improves productivity, and stimulates new applications, the long-term value of these investments will become clearer, thus alleviating current investor concerns about the scale of AI spending and profit outlook.

In fact, despite recent significant corrections in AI-related stocks, Huang has repeatedly expressed his optimism for the industry's prospects in public and urged investors not to be distracted by short-term market fluctuations. In this interview, he once again emphasized that judging the future of the AI industry requires a return to technology and economic fundamentals rather than over-focusing on short-term changes in market sentiment. Huang said: "Focus on first principles, focus on fundamentals."