IT Home On October 17, in the face of the recent significant drop in AI concept stocks, Nvidia CEO Jim Hong remains optimistic, believing that the positive impacts of AI will quickly overpower investors’ concerns. “Everything will pass, and the reason is simple. AI will bring profound changes, having a very positive effect on all industries and every country. There is no doubt that this process will continue, and everything has just begun.”
Just before Hao Huang made the above remarks, the chip and AI infrastructure sector experienced a turbulent week. The Philadelphia Semiconductor Index fell for 8 consecutive days, setting the longest streak since 2008; Nvidia also fell on 7 of the past 8 trading days. As borrowing costs rise, investors are beginning to worry about whether the massive expenditures in the AI sector can be sustained.
Hong Quanjin has always been optimistic about the future of the AI market and the role AI plays in driving the overall economy. He expects that the returns from large-scale hardware investments will help ease market concerns. “Some recent news have indeed caused market fluctuations. As we all know, there is news every day, but these news will not change the fundamentals.”
According to IT Home, CoreWeave, a cloud computing service provider supported by NVIDIA investments, has suffered particularly severe damage during this sale. The bond price of CoreWeave has recently fallen to levels that are typically considered signs of financial trouble, and its stock price also dropped by about a quarter this week.
Hong Quanjin has repeatedly reminded investors not to be influenced by short-term news, but to focus on the long-term value of AI technology. In an interview, he once again emphasized: “Always focus on the first principles. Always pay attention to the fundamentals.”