The Philadelphia Semiconductor Index has fallen for eight consecutive trading days, setting a new record for the longest streak of declines since 2008. CoreWeave Tumbled by over 25% in a single week, and the AI infrastructure boom is facing a test of investor confidence. NVIDIA CEO Jensen Huang stated that the current market turmoil “will eventually pass.” AI This technology is transformative and will have a positive impact on every industry and every country; this process is still at its beginning and will not be altered by short-term fluctuations.

As the boom in artificial intelligence infrastructure faces a test of investors' confidence, Jensen Huang publicly endorses the prospects of AI, calling on the market to focus on the long-term fundamentals.

Jensen Huang said in an interview with Bloomberg in Berlin on Thursday that the current market turmoil “will eventually pass,” due to the transformative nature of AI technology, which will have a positive impact on every industry and every country. He emphasized that this process is still at its beginning and will not be altered by short-term fluctuations.

At the time of this statement, the Philadelphia Semiconductor Index had been declining for the eighth consecutive trading day, marking the longest streak of declines since 2008. NVIDIA's own stock price also recorded declines on seven of the past eight trading days.

AI A representative company in infrastructure construction, CoreWeave, was hit particularly hard this week, with its stock price plummeting by more than a quarter in just one week, and the price of its corporate bonds also dropped to levels that usually indicate financial difficulties. NVIDIA is one of the main shareholders of CoreWeave.

Market turmoil cannot shake the fundamental analysis of AI

Jensen Huang maintained an optimistic stance regarding the current market environment in an interview. “There is indeed a lot of noise in the news,” he said, “news happens every day, but that does not change the fundamentals.”

He expects that the large-scale investment by enterprises in AI hardware will ultimately yield considerable returns, thereby gradually alleviating market concerns. In his view, the sustainability issues of AI expenditures that current investors are worried about will be resolved as the technical value is realized.

Jensen Huang has repeatedly urged investors to look beyond short-term reports and focus on the long-term value of technology. “Return to the first principles and focus on fundamentals,” he emphasized again in an interview.

Chip stocks under pressure, CoreWeave suffers heavy losses

This round of selling has affected the entire chip industry as well as the AI infrastructure sector. The Philadelphia Semiconductor Index has fallen for eight consecutive trading days, marking the longest decline since the financial crisis in 2008; NVIDIA's stock price has closed lower on seven of the past eight trading days.

The pressure is particularly concentrated on cloud computing service provider CoreWeave. The company's stock price has fallen by a quarter this week, and its corporate bonds have also dropped to a price range that is generally regarded by the market as a sign of trouble. NVIDIA, as one of the important supporters of CoreWeave, holds shares in the latter.

The backdrop for this round of market adjustments is that investors are skeptical about whether AI expenditures can be sustained in an environment where lending costs remain high, and they have become more cautious regarding the profit-making paths of related companies as well.

Edit / Liam