The Philadelphia Semiconductor Index experienced the longest continuous decline since 2008, and Hwang In-hoon calmly responded: Short-term fluctuations will not change the long-term growth prospects of AI

The Zhitong Finance App learned that in the face of the recent continuous sell-off of artificial intelligence (AI) related stocks, Nvidia (NVDA.US) CEO Huang Renxun is still full of confidence in the long-term development prospects of the AI industry. He said that although the market currently has concerns about the sustainability of AI investments, investors' doubts will eventually subside as the technology gradually shows great potential to transform the global economy.

In an interview at an event held in Berlin, Germany, Hwang In-hoon said, “This will all be over. The reason is very simple. AI will bring about change and have a very positive impact on every industry and every country. There's no doubt that this trend will continue, and we're just getting started.”

When Hwang In-hoon made these remarks, stocks related to the global AI industry chain were undergoing drastic adjustments. Over the past week, the stock prices of chip makers and AI infrastructure companies have continued to be under pressure, and market concerns about whether the AI investment boom will continue to heat up.

According to the data, the much-publicized Philadelphia Semiconductor Index has been falling for eight consecutive trading days, setting the record for the longest continuous decline since 2008. Meanwhile, Nvidia's stock price closed down on 7 of the past eight trading days, reflecting a marked decline in investors' risk appetite for AI-related stocks. One of the main reasons for the recent market sell-off is that investors are beginning to question whether technology companies can maintain a huge scale of AI capital expenditure for a long time against the backdrop of continued high financing costs.

As the world's largest technology companies continue to invest huge sums of money to build AI data centers, the market is increasingly concerned about when these investments can generate sufficient revenue and profits, and whether related companies can maintain the pace of expansion in a high interest rate environment. Among them, AI cloud computing service provider Coreweave (CRWV.US) became one of the companies hardest hit by the recent sell-off wave.

As an AI cloud computing company supported by Nvidia, CoreWeave recently faced investors' concerns about its debt burden and ability to finance. The prices of some of the company's bonds have fallen to levels commonly seen as a sign of financial distress, and the stock price has fallen by a cumulative total of about 25% this week. Both CoreWeave's equity and debt are under pressure, further exacerbating market concerns that AI infrastructure construction is highly dependent on external financing.

However, Hwang In-hoon does not believe that recent market fluctuations mean that the AI industry's long-term growth logic has fundamentally changed. He said investors should differentiate between short-term market news and long-term fundamentals. “There is indeed some unsettling news recently. Everyone knows that news comes out every day, but it doesn't change the fundamentals.”

As the world's largest supplier of AI accelerators, Nvidia is at the core of global AI infrastructure construction. The AI chips it produces are widely used in the training and operation of large-scale models. At the same time, the company has also expanded its business into related hardware, software and services in recent years.

With the gradual promotion of AI technology in various industries, Nvidia is expected to benefit not only from large technology companies' investment in computing power infrastructure, but also from the growth in long-term computing demand brought about by the popularity of AI applications.

Hwang In-hoon believes that the current market is paying too much attention to the huge upfront investment required for AI infrastructure construction, yet it may have underestimated the economic returns these investments can generate in the future.

In his view, as AI gradually changes the way companies operate, improves production efficiency, and promotes the development of new applications, the long-term value of related investments will become more clear, thereby easing investors' current doubts about the scale of AI spending and profit prospects.

In fact, despite recent drastic adjustments in AI-related stocks, Huang Renxun has repeatedly publicly expressed his optimism about the industry's prospects and called on investors not to be disturbed by short-term market fluctuations. In this interview, he once again emphasized that judging the development prospects of the AI industry should return to technical and economic fundamentals, rather than pay too much attention to short-term changes in market sentiment. “Focus on the principle of primacy and focus on fundamentals,” Hwang In-hoon said.