$NVIDIA(NVDA.US) CEO Jensen Huang just weighed in on the AI selloff that has hammered chip stocks all week

"All of this is going to pass"

The comment crossed as a Bloomberg headline Friday afternoon, right as $NVIDIA(NVDA.US) wrapped up a 6.6% weekly drop. Shares closed at $214.13, down 1.4% on the day, after finishing last Friday at $229.28

It is the latest in a string of reassurances from Huang on his European tour. On Thursday he told Bloomberg in Stockholm that "CoreWeave's strength is improving every day" and that its cost of capital is actually decreasing

On the BG2 podcast released Thursday, he said new orders are arriving "almost weekly and daily," that frontier labs like OpenAI and Anthropic make up only about 25% to 30% of $NVIDIA(NVDA.US)'s computing activity, and that they "don't have to be anywhere near a trillion dollars in revenues to be successful"

The market is not buying it yet. US chip stocks had lost about $1.64T in market value over six sessions as of Thursday per Reuters, the VanEck Semiconductor ETF $SMH fell another 3.4% today, and the Nasdaq dropped 2.1% to close out its worst week since June

Huang is probably right that AI demand does not disappear because yields went up, and $NVIDIA(NVDA.US) is one of the few names in this trade sitting on real profits. But this selloff was never about whether customers want GPUs. It is about whether the debt funded buyers can keep paying for them with the 10 year near 5%, and no CEO quote fixes that. The tell is still $Coreweave(CRWV.US) and the neocloud bond market, not $NVIDIA(NVDA.US)'s order book

Source: StockMarket.News