This week, NVIDIA CEO Jensen Huang made an important announcement regarding the company’s current performance in the global market. Conversations regarding the possibilities of an AI bubble happening seem to be in the air for the tech industry, which could be a concern for investors and shareholders alike. Recently, Google CEO Sundar Pichai addressed the same during a BBC podcast episode. There, Pichai stated that there could, in fact, be an AI bubble emerging.
With overwhelming investments and an ever-increasing demand for new variations of AI tools, Pichai shared that the ongoing revolution of AI may undergo a similar path like the Internet. Similar to the technology, AI may also experience the boom and bust of the bubble, which could be detrimental to investors. Nevertheless, Pichai’s acknowledgment of the AI bubble also comes with an assurance that it is part of the process and the world would acclimatize to the new technological change soon.
However, NVIDIA CEO Jensen Huang does not believe that the dangers of an AI bubble is nigh.
NVIDIA CEO Jensen Huang shrugs off AI bubble concerns
On Wednesday, NVIDIA CEO Jensen Huang addressed the recent speculations regarding the possibilities of an AI bubble. As reported by Wired, he said on an earnings call, “There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different.”
He stated with much optimism that NVIDIA’s position as the largest GPU chip manufacturer in the world will only propel their success in the AI age. Huang further mentioned that the company is prepared to cater to unprecedented demands from customers when the occasion rises.
Huang firmly believes that with the coming on AI across various industries as well as different aspects of daily life, NVIDIA will be an indispensable brand for all businesses. He said, “All industries, across every phase of AI, across all of the diverse computing needs in a cloud, and also from cloud to enterprise to robots.” Huang’s perspective at the topic of the AI bubble seems more oriented towards the market performance of the brand. However, Wall Street reacted with ambivalence towards the NVIDIA CEO’s words.
Related: Google CEO Sundar Pichai Raises Serious Concern Over AI Use
Jensen Huang’s dismissal of AI bubble may not reflect in company share
NVIDIA catapulted to fame with OpenAI’s debut of ChatGPT five years ago. It suddenly built in the market a demand for the company’s GPUs in order to train and utilize generative AI models. Although the past three years have brought NVIDIA to its current position, the past few weeks have not been kind to the company.
Recently, NVIDIA’s shares dropped about 10 per cent after it recorded its all-time high towards the end of October this year. On November 20, the company’s shares crawled 5 per cent upwards during the trading after-hours.
This came after NVIDIA announced its quarterly sales, which reflected the company’s brilliant performance in the market. The numbers may be a numerical reiteration of Huang’s dismissal of an AI bubble, but the gains have not been adequate for NVIDIA to recover for the recent sell-off.
One of the primary concerns of investors have been the company’s unsustainable approach to sales. Nevertheless, Huang is determined that NVIDIA’s partnership with Anthropic will fuel the company’s financial gains.
Also Read: Microsoft, NVIDIA, and Anthropic Announce Major AI Partnerships
