- NVIDIA (NVDA:US) CEO Jensen Huang pointed out during a closed-door event in Taipei that the return on investment in the field of artificial intelligence has fundamentally changed over the past six months. The current level of returns significantly exceeds market expectations, and he positively addressed concerns about a valuation bubble in the AI market.
- This high-level closed-door event was co-hosted by the investment institution Era and Chailease Holding, under the local financial magnate Andre Koo Sr. It attracted decision-makers from major global financial institutions, including Hillhouse Investment, PAG, and DBS Group. At the meeting, Jensen Huang emphasized that AI technology has created trillions of dollars in tangible and ecological value worldwide.
- Although Jensen Huang is strongly optimistic about the long-term profitability of AI, the global chip semiconductor sector has recently shown mixed performance. NVIDIA's stock price slightly retreated by 3.62%, TSMC (2330:TW) fell by 1.65%, SK Hynix (7709:KR) plunged by 9.17%, while Micron Technology (MU:US) rose by 1.45% against the trend.
Jensen Huang Responds Positively to Market Bubble Concerns
At a special event in Taipei, NVIDIA CEO Jensen Huang reiterated the long-term value of AI investment to representatives of top global investment institutions present. Huang stated that recent market doubts about AI's massive capital expenditure and its profitability model are being dispelled by actual data. He noted that in just the past six months, the return on investment (ROI) in AI has been completely reshaped, with current profitability showing strong performance. Regarding some market analysts' claims that the industry is entering a valuation bubble, Huang believes that given the technology has created trillions of dollars in both book and actual value for the global industrial ecosystem, excessive skepticism about its ROI lacks deep industry data support.
Closed-Door Meeting Gathers Global Buy-Side Capital
It is understood that this high-profile event was co-hosted by the billionaire-backed investment institution Era and Chailease Holding, under local financial magnate Andre Koo Sr., and was held at the Mandarin Oriental Hotel in Taipei. The event gathered over 300 core decision-makers from the capital markets, including representatives from major institutions such as Hillhouse Investment, PAG, and DBS Group. Analysts pointed out that Jensen Huang's choice to make public statements at such a buy-side institution-concentrated occasion aims to consolidate institutional investors' confidence in the semiconductor supply chain and AI infrastructure construction, alleviating the temporary loosening of chips caused by excessive previous gains.
Reshaping Core Supply and Demand Relationships in the Industry Chain
While explaining the path to technology monetization, Jensen Huang particularly emphasized the importance of NVIDIA's deep collaboration with the global semiconductor supply chain. In his speech, he specifically mentioned key partners such as Micron Technology (MU:US), SK Hynix (7709:KR), and TSMC (2330:TW). From an industry chain perspective, the supply capacity of advanced packaging and high-bandwidth memory (HBM) remains a key variable determining the shipment volume of AI computing chips. If upstream wafer foundry capacity continues to be tight or memory chip technology yields fall short of expectations, the hardware supply side may face temporary bottlenecks, thereby affecting the revenue realization of related companies.
Capital Expenditure Cycle and Cross-Asset Pricing Variables
The global macro market is currently closely watching the capital expenditure cycle of tech giants. Some fixed-income market analysts point out that if tech companies' investment in computing infrastructure remains high, it will have a profound impact on the cash flow structure of the global tech sector. If large tech companies' performance in future quarters fails to consistently meet high growth expectations, the valuation premium in the equity market may face systemic corrections. Conversely, if the commercialization of AI applications exceeds market consensus, it is expected to further drive revenue growth for supply chain-related companies, thereby supporting the continuation of high valuation systems and having a marginal transmission effect on overseas liquidity allocation at the macro level.
