As the global market is embroiled in debates over an "AI bubble," even the most successful company, Nvidia, is under unprecedented scrutiny. As the core supplier of AI infrastructure, every move Nvidia makes is regarded as a barometer for the health of the entire industry.
According to a report by Business Insider on Friday, Nvidia CEO Jensen Huang admitted during an internal meeting on Thursday that despite the company delivering an "incredible" report card, "the market is not appreciative." The head of the chip giant rarely acknowledged that Nvidia now faces an unsolvable dilemma: if its performance is outstanding, it will be accused of fueling the AI bubble; if its performance is poor, it will be seen as evidence of the bubble bursting.
During the meeting, Jensen Huang stated that market expectations for Nvidia have become so high that the company is caught in a kind of "no-win situation." He bluntly said: "If we deliver a bad quarterly report, even if it's just a little bit off, if it looks a little shaky, the whole world will collapse."
Trapped in a "No-Win Dilemma"
According to a recording of the meeting obtained by Business Insider, Jensen Huang elaborated on Nvidia's current predicament during the internal meeting on Thursday. "If we deliver a bad quarterly report, that's evidence of the existence of an AI bubble. If we deliver an excellent quarterly report, we're fueling the AI bubble," he said.
Jensen Huang pointed out that market expectations for Nvidia have become so high that no matter how the company performs, it is difficult to satisfy investors. He mentioned discussions online about the company's enormous economic impact: "You should check out some of the jokes on the internet. Have you seen any? We're basically supporting the entire planet—and that's not untrue."
He also cited some posts claiming that Nvidia's performance is helping the United States avoid an economic recession, highlighting that the market has already regarded this chip manufacturer as a key indicator of macroeconomic health.
Nvidia's earnings report released on Wednesday showed that third-quarter revenue accelerated by 62%, and the guidance for this quarter once again exceeded expectations. When the report was released, Jensen Huang refuted the growing narrative about an AI bubble. However, the market reaction was volatile: after the stock price rose on Wednesday (at one point by more than 6%), it fell again on Thursday (plunging 7%). The company's market value evaporated by about 500 billions of dollars within a few weeks.
Jensen Huang joked during the meeting about the "good old days" when the company's market value reached 5 trillions of dollars. "No one in history has lost 500 billions of dollars in a few weeks," he said. "You have to be worth a lot of money to lose 500 billions of dollars in a few weeks."
This market value fluctuation reflects that investors' confidence in the AI investment boom is wavering. Even in the face of strong performance data, the market still has doubts about its sustainability.
