Sell-off in tech stocks is a buying opportunity, Nvidia CEO says
Fears of overheating in the AI trade have cooled global tech stocks
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[SEOUL] Nvidia chief executive officer Jensen Huang called a global tech stocks sell-off that began last week a buying opportunity, saying the buildout of artificial intelligence has just begun.
South Korea’s benchmark Kospi Index tumbled on Monday (Jun 8) after investors pulled back from AI bets that have fuelled a bull market in global equities. Fears of overheating in the AI trade have cooled global tech stocks, with US peers tumbling Friday on concerns over a possible rate hike.
Huang, responding to questions about how that sell-off should be perceived, said the industry was still in the early stages of constructing infrastructure that will serve as the foundation of an AI-fuelled future.
On Monday, Nvidia and SK Hynix said they struck a multi-year agreement to design future generations of memory chips for AI, a win for a South Korean leader vying with Samsung Electronics in the red-hot arena. Stocks including SK Hynix pared losses after South Korean President Lee Jae-myung said Monday he believed the domestic market remained undervalued.
“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 said. “Everybody should be very excited,” he told reporters after meeting with SK Group chairman Chey Tae-won in Seoul.
Like many of his industry peers, Huang has consistently argued that AI will revolutionise broad swaths of the global economy and transform the way people work and live. That will in turn drive huge demand for the data centres – and 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,” he said. BLOOMBERG
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