Response from Nvidia CEO to Claims of AI Bubble

Response to AI Bubble Discussions

As concerns grow that artificial intelligence may turn into a bubble similar to the dot-com bubble of the 2000s, Nvidia CEO Jensen Huang made statements to ease these worries. Huang clarified the current situation by saying, “There has been a lot of talk about an AI bubble. However, we see a very different picture.” The CEO emphasized that cloud computing expenditures have reached hundreds of billions of dollars annually and that AI demand is still in its early stages.

Financial Success and Goals

Nvidia, which has drawn attention with its recently announced financial reports, has raised its annual sales and profit growth to over 60%, attracting investor interest. The fourth-quarter revenue is expected to be around $65 billion, while CFO Colette Kress stated that the company aims to develop a $3-4 trillion AI infrastructure. Huang highlighted that demand is growing at a pace exceeding expectations, explaining that the AI infrastructure covers a wide range from daily technological services to scientific and engineering simulations. This situation has led to an acceleration in the transition from previous CPU chips to Nvidia chips.

Market Developments and Investor Perception

Since the beginning of the year, NVDA shares have gained 29%, making Nvidia one of the leading companies in the technology sector. However, concerns about a market bubble still persist. Some analysts suggest that these worries could turn into buying opportunities for certain investors. Nonetheless, the sustainability of investments made by Nvidia and other tech firms in large but unprofitable customers, such as OpenAI and Anthropic, remains a major point of curiosity. Market observers are closely monitoring how these expenditures will develop.