"Whether results are good or bad, it's the AI bubble"…Jensen Huang's 'candid vent'

Korea Economic Daily

Summary

Despite Nvidia announcing record earnings, the market remained cold amid the AI bubble controversy.
Both earnings per share (EPS) and revenue beat market expectations in an earnings surprise, but the stock's gains were limited to a short-lived rally.
Weaker expectations for rate cuts and warnings from U.S. Fed officials about overvalued assets are affecting investor sentiment.

Nvidia CEO Jensen Huang, who posted record-high results, reportedly expressed regret about the cold market reaction, citing the 'AI bubble' narrative.

On the 21st (local time), according to U.S. business outlet Business Insider, Huang described Nvidia's current situation in a meeting with employees the previous day as a 'no-win situation' and said, "If we report poor results, it becomes evidence that there is an AI bubble, and if we report great results, it fuels the AI bubble."

Huang noted that expectations for Nvidia are so high that even a small mistake would prompt reactions as if the world were ending. He said, "If we make even a small mistake or show the slightest sign of wavering, it would be as if the whole world had collapsed," and added, "Have you seen the internet memes (meme)? (Looking at the memes) we are, in effect, supporting the Earth."

An Nvidia spokesperson explained the intent behind Huang's remarks as, "Following another quarter of astonishing growth and overwhelming demand, it was a message to company members to 'stay focused and let the market do its own work.'"

Earlier, Nvidia announced on the 19th that its third quarter of its fiscal year (August–October) revenue increased by 62% year-on-year to a record $57.01 billion (about 83.4 trillion won). Earnings per share (EPS) were $1.3, and both revenue and EPS exceeded market expectations in an 'earnings surprise.' Huang had said, "We have entered the virtuous cycle of AI."

After Nvidia's strong results, investor sentiment, which had been cold while trying to dispel the AI bubble theory, seemed to revive, but the stock's rise was only a 'brief rally.' Weaker expectations for interest rate cuts and remarks by Fed Governor Lisa Cook targeting AI-related overvalued sectors — saying, "There is a high possibility that the prices of overvalued assets such as stocks will fall" — were interpreted as adding pressure.

Minseong Hong, Hankyung.com reporter mshong@hankyung.com