Jensen Huang Says AI Demand Is “Off the Charts.” The Money to Pay for It Isn’t
Chip stocks have been under pressure recently. During Thursday’s trading session, the Philadelphia Semiconductor Index plunged by nearly 7%, and all 30 of the index’s stocks finished the day in the red. Sector leader Nvidia (NASDAQ:NVDA) fell about 4.5%, as investors seem increasingly skeptical that the AI spending spree will last for years.
On that same day, Nvidia’s CEO Jensen Huang said in an interview that demand from “neoclouds,” companies that rent out Nvidia-powered computing capacity, is off the charts. But he also said that the money needed to build the capacity the market demands is far greater than what is actually available.
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