Amid a global sell-off in technology stocks, NVIDIA Corp.'s (NVDA) CEO Jensen Huang has framed the recent downturn not as a cause for alarm, but as a prime entry point, reiterating that the construction of AI infrastructure is only in its initial stages.
On Monday, South Korea's benchmark Kospi index experienced a significant decline as the AI-driven trading fervor that had fueled a global bull market showed clear signs of cooling. U.S. tech stocks also fell sharply on Friday due to market concerns over potential interest rate hikes.
Speaking to reporters in Seoul after meeting with SK Group Chairman Chey Tae-won, Huang stated, "We are at the beginning. Whatever happened in the stock market, you should feel really great about it because now you can get it on sale." He emphasized, "Everyone should be very excited."
Concurrently, NVIDIA and SK Hynix announced a multi-year agreement on Monday to jointly design next-generation AI memory chips. This news helped pare losses for stocks like SK Hynix. South Korean President Lee Jae-myung also commented on the same day, stating his belief that the Korean stock market remains undervalued.
AI Momentum Cools, Pressuring Tech Sector
The trigger for this round of tech stock selling is a combination of worries over overheated AI trading and expectations of potential Federal Reserve rate hikes, which have weighed on the previously surging global tech sector. South Korea's Kospi index followed the downward trend on Monday, having previously accumulated substantial gains from the AI-related investment boom. This reversal in market sentiment reflects investor doubts about whether returns from AI infrastructure investments can be sustained.
Addressing external skepticism about market volatility, Huang maintained his consistent stance. He stated that AI becoming global infrastructure is a "done deal," much like the internet did in its time. He believes the industry is still in the early phase of building the foundational infrastructure for AI, which will underpin a future AI-centric economy and drive sustained, massive demand for data centers and chips.
During his visit to Seoul, NVIDIA and SK Hynix announced the signing of a multi-year cooperation agreement to jointly develop next-generation memory chips for AI applications. This partnership is significant for SK Hynix—in the fiercely competitive high-end AI chip market against Samsung Electronics, this deep collaboration with NVIDIA helps solidify its leading position. Following the announcement, SK Hynix's stock price decline notably moderated, somewhat alleviating the day's pessimistic market mood.
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