Huang Renxun: The wave of stock selling will pass, the AI revolution has just begun, and the return on huge hardware investments can ease market sentiment

AI stocks have been selling off recently. Huida CEO Huang Renxun emphasized that the AI ​​revolution will continue and has just begun. (File photo)

[Compiled by Wei Guojin/Comprehensive Report] Recently, artificial intelligence (AI) stocks have set off a selling trend. Huida CEO Jen-Hsun Huang attended an event in Berlin and emphasized, "All this will pass, and the reason is very simple. AI will bring changes and will have a very positive impact on every industry and every country. There is no doubt that this revolution will continue, and it has only just begun."

AI has a positive impact on every industry and country

Bloomberg reported that Huang’s comments are expected to put the brakes on the recent plunge in stocks related to chip manufacturers and AI infrastructure. Philadelphia Semiconductor fell for eight consecutive trading days, the longest decline since 2008, while Huida fell on seven of the eight trading days; memory stocks fell nearly 22% from the highest point of the band, falling into a bear market.

Please read on...

Although the market has doubts about the continued high borrowing costs and the sustainability of AI spending, Huang Renxun has always been optimistic about the AI market and its impact on the overall economy; he expects that the returns on huge hardware investments will eventually ease market uneasiness.

He pointed out that the market is full of noise and "despite the constant news, it will not change the fundamentals." Huida is the core enterprise of global AI infrastructure. It is the largest seller of AI accelerators and is involved in various related hardware, software and service fields.

Investors are reminded to focus on long-term value

This wave of selling has had the most severe impact on cloud computing service provider CoreWeave, of which Huida is one of the company's largest shareholders. CoreWeave's recent bond prices have plummeted to levels that the market regards as a sign of financial distress, and its stock market value has evaporated by nearly 25%.

Huang Renxun has repeatedly reminded investors not to focus only on short-term financial reports, but also to focus on the long-term value of AI technology; he said, "Always focus on the first principle of investment and continue to focus on fundamentals."

Grasp the economic pulse with one hand. Click here to subscribe to Free Finance Youtube Channel