Nvidia's Huang Tells Bloomberg AI Market Rout Will 'Pass'

Jensen Huang spent part of his Berlin visit telling Bloomberg's Emily Chang that the AI stock sell-off was noise.

"All of this is going to pass, and the reason for that is very simple," Huang said. "It's going to be transformative. It's going to impact in a very positive way every single industry and every single country." He added that "we're at the beginning of that," and urged investors to "Stay focused on first principles."

Behind the reassurance: the Philadelphia Semiconductor Index just fell for an eighth straight session, its longest losing streak since the 2008 financial crisis, and Nvidia shares themselves closed down in seven of the past eight. The pressure point everyone wants Huang to address is CoreWeave, whose 2032 notes have been trading at a yield near 15% against a 9.625% coupon, with credit default swaps around 1,000 basis points, implying a five-year default probability approaching 63%.

Huang was ready for that one. "CoreWeave's strength is improving every day," he told Bloomberg. "I'm optimistic. Their cost of capital is actually decreasing." It is an unusually specific statement for a vendor to make about a customer's public bond market.

Our tracker has had the financial side of this story moving fast all week: CoreWeave's co-founders have sold $3.3 billion of stock since the March IPO, and Anthropic is reportedly marketing a $9 billion chip-debt deal to Blackstone at 10%-plus yields. Neither Bloomberg nor Huang put a date on when the current rout ends.