"It'll all blow over": Nvidia CEO Huang expressed confidence that the AI rally will continue

The current sell-off in artificial intelligence-related stocks is a temporary phenomenon: the technology’s benefits will soon outweigh investors’ concerns, said Nvidia CEO Jensen Huang. He was quoted by Bloomberg. Huang leads a company whose market value has skyrocketed, making it the world’s most valuable company by market capitalization thanks to the AI boom and the accompanying demand for AI hardware. Earlier, the top executive spoke out against slowing down AI development, a call made by Dario Amodei, CEO of Anthropic, the most valuable startup in this field.

“All of this will pass, and the reason is simple. This [artificial intelligence] will be a transformative technology. It will have a very positive impact on every industry and every country. There is no doubt that this process will continue, and we are only at the beginning of the journey,” Huang said.

According to Nvidia’s CEO, the returns on large-scale investments in equipment will eventually ease market concerns. “As for some of the news—it’s quite contradictory. News, as you know, happens all the time, but it won’t change the fundamentals,” he said.

Huang urged investors not to get hung up on short-term reports but to focus on the long-term value of the technology: “Stay focused on first principles. Stay focused on the fundamentals.”

The statements came at the end of a tough week for chipmakers’ stocks: on October 16, they fell for the eighth consecutive day, marking the sector’s longest losing streak since 2008. Nvidia’s stock, in particular, has fallen during seven of the last eight trading sessions. Investors fear that spending on artificial intelligence already exceeds what companies can gain from these investments.

The sell-off hit CoreWeave particularly hard—a cloud computing provider whose largest investors include Nvidia. Huang came to its defense on Thursday, stating that CoreWeave’s financial position is becoming increasingly stable and that it does not need Nvidia’s help.

In September, Jensen Huang rejected the need for additional regulation of artificial intelligence safety, thereby contradicting Anthropic CEO Dario Amodei. For Huang, AI is not a new form of “alien intelligence,” but rather human-created “hardware” and software; therefore, in his view, humans and existing laws are capable of controlling the technology. According to Huang’s logic, the free market will prevent AI developers from releasing unsafe products.

Amodei voiced support for slowing the pace of AI development in an essay published following the high-profile departure of an Anthropic employee. The employee claimed that Anthropic and OpenAI are “gambling with our lives”: in his view, their technologies could pose a threat to humanity. Amodei received public support from Tesla and SpaceX CEO Elon Musk and OpenAI CEO Sam Altman.

This article was AI-translated and verified by a human editor