During an internal meeting on September 28, 2023, Nvidia CEO Jensen Huang expressed concerns about the company’s precarious position in light of rising fears surrounding a potential AI bubble. Despite Nvidia reporting record earnings, Huang noted that the stock market’s reaction has not reflected the company’s impressive performance. This sentiment was captured in audio reviewed by Business Insider, where Huang stated, “The market did not appreciate our incredible quarter.”
Nvidia recently announced that it has “visibility” into approximately $500 billion in revenue for the remainder of 2025 and into 2026. However, the investor response was unexpectedly negative, with shares rising initially on the day of the earnings report before closing down by about 3%. This volatility highlighted broader concerns affecting the technology sector, particularly those associated with AI investments.
Huang elaborated on the extreme expectations placed upon Nvidia, suggesting that Wall Street views the company as a barometer for the AI industry. According to him, investors are caught in a dilemma: if Nvidia performs poorly, it signals an AI bubble, but if it excels, it is seen as contributing to the bubble. He remarked, “If we delivered a bad quarter, it is evidence there’s an AI bubble. If we delivered a great quarter, we are fueling the AI bubble.”
The turbulent market environment followed a release of mixed economic data. A job report indicated stronger-than-expected hiring in September but also showed a rising unemployment rate, adding to uncertainty regarding the U.S. Federal Reserve‘s potential interest rate cuts in December. With the earnings season winding down, many investors seem to be locking in profits from earlier gains, leading to a sell-off in major tech stocks, including Nvidia.
In the meeting, Huang acknowledged the pressure that comes with Nvidia’s high market value, which has made it the world’s most valuable public company. He humorously referenced the memes circulating online that depict Nvidia as the linchpin of the global economy, stating, “We’re basically holding the planet together—and it’s not untrue.” This level of expectation has made earnings announcements a high-stakes event for the company.
Despite the challenges, Huang maintained a positive outlook on Nvidia’s core business, emphasizing the strength of its underlying operations. He dismissed the notion that Nvidia is responsible for the speculative aspects of the AI market, asserting that the company’s role is to provide the necessary infrastructure for others rather than to dictate market valuations.
Huang also injected humor into the discussion, reflecting on Nvidia’s fluctuating market valuation. He quipped about the company having once reached a peak valuation of $5 trillion, stating, “Nobody in history has ever lost $500 billion in a few weeks.” His comments underscored the dramatic swings in Nvidia’s stock price amid current market conditions.
As Nvidia navigates this challenging landscape, Huang’s insights reveal the delicate balance between innovation, investor expectations, and the realities of market dynamics. The company’s ability to deliver on its ambitious revenue forecasts will be closely watched by both the market and its stakeholders in the months ahead.
