Nvidia Corp. chief executive Jensen Huang has described the recent global tech stocks selloff as a buying opportunity, asserting that the artificial intelligence revolution is still in its infancy. Speaking to reporters in Seoul, Huang emphasized that the industry is only at the beginning of constructing the infrastructure needed for an AI-driven future.
Market Turmoil Amid AI Concerns
South Korea's benchmark Kospi Index experienced a sharp decline on Monday as investors retreated from AI-related bets that have driven a prolonged bull market in global equities. Fears of overheating in the AI trade have cooled tech stocks worldwide, with U.S. counterparts dropping on Friday due to concerns about a potential interest rate hike.
Huang's Optimistic Outlook
When asked how investors should interpret the selloff, Huang replied, "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 added, "Everybody should be very excited." Huang made these comments after meeting with SK Group Chairman Chey Tae-won in Seoul.
On Monday, Nvidia and SK Hynix Inc. announced a multi-year agreement to co-design future generations of memory chips for AI applications. This partnership is a significant win for SK Hynix, which is competing with Samsung Electronics Co. in the high-stakes AI chip market. Following the announcement, stocks including SK Hynix pared some losses after South Korean President Lee Jae Myung stated that the domestic market remains undervalued.
AI as the Next Global Infrastructure
Like many of his industry peers, Huang has consistently argued that AI will transform broad sectors of the global economy and fundamentally change how people work and live. This transformation will drive enormous demand for data centers and the 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," Huang said.
The selloff, which began last week, has rattled investors but Huang views it as a temporary setback. He believes the long-term prospects for AI remain strong, and the current dip presents a strategic entry point for investors. With the AI buildout still in its early stages, Huang's comments reinforce the narrative that the sector has substantial room for growth.
