Jensen Huang stays bullish on AI as chip stocks tumble

AI chip stocks have had a rough stretch. The Philadelphia Semiconductor Index fell for 8 straight trading days, its longest losing streak since 2008, and Nvidia dropped on 7 of the past 8 days. With borrowing costs rising, investors are questioning whether huge AI spending can last.

Amid the turmoil, Nvidia CEO Jensen Huang spoke out. He said AI's positive impact will soon outweigh investor worries, calling AI a deep change that will benefit every industry and country, and noting that it's all just beginning.

Huang expects returns from massive hardware investments to calm the market. He keeps telling investors not to be swayed by short-term news, urging them to focus on first principles and fundamentals.

Cloud provider CoreWeave, backed by Nvidia, was hit hard in the selloff. Its bond prices fell to levels often seen as a sign of financial distress, and its stock lost about a quarter of its value this week.