Nvidia Boss Dismisses AI Bubble Fears as Tech Valuations Soar

Jensen Huang, the influential founder and chief executive of Nvidia, has moved to quell growing unease over soaring valuations within the technology sector amid mounting warnings of potential asset bubbles in global equity markets.

Speaking to The Times during a high-profile visit to London, where he was awarded the Queen Elizabeth Prize for Engineering by the King, Huang said, “We are all in a bubble, the question is where are you in that phase I believe we are in the beginning of the build out It just happens to be with very large numbers”

Huang dismissed concerns that stock markets are poised for a significant correction. Despite Nvidia’s shares slipping 18 per cent to close at 19521 dollars and reducing the company’s value to 475 trillion dollars, he argued that the economic footprint of artificial intelligence is unprecedented. “Ultimately AI is the first technology in history that has the opportunity to directly benefit a hundred trillion dollars of the world’s economy,” he said.

As Nvidia recently became the first company ever to eclipse the 5 trillion dollar market capitalisation mark, investor sentiment has shifted between exuberance and caution. Huang attributes the momentum to the urgent need for businesses to overhaul computer infrastructure in the race to implement artificial intelligence at scale. He argues that as long as AI remains highly effective and profitable, the investment cycle will intensify and every major technology and computer company will seek to build capacity for the AI era.

While some market observers have sounded alarms, the sector’s leaders forecast only the beginning of this transformative period. Huang maintains that Nvidia’s valuation is a reflection of the firm’s extraordinary impact across industries and its contribution to reshaping the technological landscape.

There are, however, voices urging prudence The International Monetary Fund and the Bank of England have each flagged risks of a ten per cent market drop, while Borge Brende of the World Economic Forum raised the spectre of AI and crypto asset bubbles alongside rising debt Brende also warned of disruption to white collar jobs as AI-driven automation accelerates, but acknowledged that such technological revolutions typically boost productivity and, over time, lead to prosperity gains across society