NVIDIA CEO Rejects "AI Bubble" Theory, Cites Sustainable Growth
In response to some opinions about an impending explosive burst of an "AI bubble", NVIDIA CEO Jensen Huang stated that the opposite is true: the market situation is just the other way around. His remarks came during a financial report after a recent dip in the company's stock price, which somewhat-analyzed by stock jockeys-had led investors to concern themselves with the future of the AI business.
Three Sides to Long-Lasting AI Growth
Huang proposed three arguments supporting his opinion that the AI investment area is intact and will grow into the future:
- Industry Integration: AI resources are increasingly used in core business functions: advertising recommendations, data processing, and design. This keeps graphics processors relevant.
- Software Creation: Neural networks are actively employed to generate new software, in addition to their integration into existing applications, thus expanding the market.
- Autonomous Agents: Progressively developing AI agents that analyze and plan actions with no human input require more and more computing power-the need for which is fulfilled by NVIDIA's graphics chips.
There has been much talk of the "AI Bubble," but from our perspective, we see something quite different.
- Jensen Huang, CEO of NVIDIA
Market Response and Long-Term Thoughts
He said that AI investments do help companies generate indirect revenues through recommendation algorithms, which boost the volume of advertising sold. The speech was digested positively by the market, with NVIDIA shares climbing 7.93% following Huang's comments.
Previously, the NVIDIA chief had stated that branded chip sales could reach $500 billion. However, according to certain analyst forecasts, the AI boom could bring ill effects, including scrapping of entry-level graphics cards and a steep price rise for sma
