Nvidia Corp's CEO Jensen Huang has characterized the recent worldwide decline in technology stocks as a favorable moment for investors to purchase shares, emphasizing that the development of artificial intelligence infrastructure is only in its initial phases.
The selloff, which started last week, was partly triggered by a significant drop in South Korea's primary Kospi Index on Monday as investors reduced their positions in AI-related investments that had previously driven a rally in global markets. Concerns about an overheated AI sector have led to a cooling off in tech stocks globally, with U.S. technology companies also experiencing notable declines on Friday amid worries about potential interest rate increases.
When asked about how to interpret the market downturn, Huang stated that the industry is still at the beginning of building the necessary infrastructure to support an AI-driven future. In a related development, Nvidia Corp and SK Hynix Inc. announced a multi-year partnership on Monday to collaborate on designing next-generation memory chips specifically for AI applications. This agreement represents a significant achievement for SK Hynix as it competes with Samsung Electronics Co. in the highly competitive semiconductor sector. Following remarks by South Korean President Lee Jae Myung, who expressed his belief that the domestic market was still undervalued, shares of companies including SK Hynix recovered some of their earlier losses.
“We’re at the beginning of it, and whatever happened to the stock market, you should be very happy because now you can buy at a discount,” he said. “Everybody should be very excited,” he told reporters after meeting with SK Group Chairman Chey Tae-won in Seoul.
Like many of his industry peers, Huang has consistently argued that AI will revolutionize broad swaths of the global economy and transform the way people work and live. That will in turn drive huge demand for the data centers — and chips — needed to power future AI services.
“It is a foregone conclusion that AI will be infrastructure for the world, just like the internet was infrastructure for the world,” he said.