Philadelphia Semiconductor Index Suffers Longest Losing Streak Since 2008; Jensen Huang Responds Calmly: Short-Term Fluctuations Will Not Change the Long-Term Growth Prospects of AI

Title context: Philadelphia Semiconductor Index Suffers Longest Losing Streak Since 2008; Jensen Huang Responds Calmly: Short-Term Fluctuations Will Not Change the Long-Term Growth Prospects of AI Text: Amid the recent sustained sell-off in artificial intelligence (AI)-related stocks, NVIDIA Corporation (NVDA.US) CEO Jensen Huang remains full of confidence in the long-term development prospects of the AI industry. He stated that although the market currently has concerns about the sustainability of AI investment, as the technology gradually demonstrates its enormous potential to transform the global economy, investors' doubts will eventually fade. Speaking in an interview at an event in Berlin, Germany, Huang said: "This too shall pass, for a very simple reason. AI will bring transformation and have a very positive impact on every industry and every country. There is no doubt that this trend will continue, and we are only just at the beginning." Huang's remarks came as stocks across the global AI supply chain are undergoing severe adjustment. Over the past week, shares of chipmakers and AI infrastructure companies have come under continued pressure, with growing concerns about whether the AI investment boom can be sustained. Data shows that the closely watched Philadelphia Semiconductor Index has fallen for eight consecutive trading days, marking its longest losing streak since 2008. Meanwhile, NVIDIA Corporation's stock price has declined in seven of the past eight trading days, reflecting a notable drop in investors' risk appetite for AI-related stocks. One of the main reasons for the recent market sell-off is that investors have begun to question whether technology companies can sustain massive AI capital expenditure over the long term amid persistently high financing costs. As major global technology companies continue to invest enormous sums in building AI data centers, the market is increasingly focused on when these investments will generate sufficient revenue and profits, and whether the companies involved can maintain their pace of expansion in a high-interest-rate environment. Among them, AI cloud computing service provider CoreWeave (CRWV.US) has become one of the companies hardest hit in the recent sell-off. As an AI cloud computing company heavily backed by NVIDIA Corporation, CoreWeave has recently faced investor concerns about its debt burden and financing capacity. Some of the company's bonds have fallen to levels typically seen as a signal of financial distress, and its stock price has dropped about 25% this week. The dual pressure on CoreWeave's stocks and bonds has further intensified market concerns about the AI infrastructure buildout's heavy reliance on external financing. However, Huang does not believe that recent market volatility means the long-term growth logic of the AI industry has fundamentally changed. He said investors should distinguish between short-term market news and long-term fundamentals. "There has indeed been some unsettling news recently. As everyone knows, news comes out every day, but these headlines will not change the fundamentals." As the world's largest supplier of AI accelerators, NVIDIA Corporation is at the core of global AI infrastructure construction. Its AI chips are widely used in the training and operation of large models, and in recent years the company has also expanded its business into related hardware, software, and services. As AI technology gradually spreads across industries, NVIDIA Corporation not only benefits from investment in computing infrastructure by major technology companies, but is also expected to gain from the long-term growth in computing demand brought about by the widespread adoption of AI applications. Huang believes that the current market is overly focused on the massive upfront investment required for AI infrastructure construction, while potentially underestimating the economic returns these investments can generate in the future. In his view, as AI gradually changes how businesses operate, improves production efficiency, and drives the development of new applications, the long-term value of related investments will become clearer, thereby alleviating investors' current doubts about the scale of AI spending and profit prospects. In fact, despite the recent sharp correction in AI-related stocks, Huang has repeatedly publicly expressed optimism about the industry's prospects and called on investors not to be distracted by short-term market fluctuations. In this interview, he once again emphasized that judging the development prospects of the AI industry should return to technological and economic fundamentals, rather than focusing excessively on short-term changes in market sentiment. Huang said: "Focus on first principles, focus on the fundamentals."