Strong Earnings Can't Save Stock Prices? Global Chip Stocks Plunge as Jensen Huang Reveals Market Trend: This Time Is Truly Different

U.S. and Taiwan stocks have recently experienced significant volatility. Despite strong earnings reports from benchmark companies like TSMC and Alphabet, Google's parent company, their stock prices continue to fall. Many investors are concerned that the AI-driven bull market may be nearing its end, and some even question whether the chip industry is entering a new downturn in the economic cycle. In response, NVIDIA CEO Jensen Huang, in a recent interview with U.S. media, stated that global demand for AI chips still vastly exceeds supply. He emphasized that the market is not facing a cyclical correction but a long-term demand surge driven by a comprehensive infrastructure upgrade, declaring, "This time is truly different from past industry bubbles."

Regarding recent market turbulence, many are questioning whether the semiconductor technology sector's golden era is over. When asked by Axios if the chip industry is about to collapse, Huang responded, "No, not in the short term." When the interviewer followed up, "Is this situation different?" Huang agreed, saying it is.

Huang pointed out that while the semiconductor industry has historically experienced cycles of boom and bust, the current demand driven by AI is not fueled by traditional consumer markets but by a structural transformation due to global infrastructure modernization. He explained that humanity already has infrastructure such as energy, networks, highways, and railways, but now it needs to build a new "AI intelligence layer." The foundation of this intelligent infrastructure relies on massive amounts of high-performance chips.

Huang believes that global demand for AI chips still far exceeds supply. The market is not experiencing an economic cycle but a long-term demand driven by a full-scale infrastructure upgrade. As a result, the semiconductor industry could grow to five to ten times its current size. He stated that the industry remains in a state of supply shortage and will require significant additional production capacity to meet global AI infrastructure needs. He dismissed concerns that AI will cause mass unemployment or threaten humanity as exaggerated. The real risk, he warned, is that businesses and workers may reject AI out of fear, missing opportunities to enhance competitiveness and productivity.

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