Jensen Huang dismisses AI bubble concerns, says Nvidia sees a fundamental computing shift

Nvidia chief executive Jensen Huang has dismissed concerns of an AI bubble, setting out a three-point argument to explain why he believes the industry’s rapid expansion is grounded in structural change rather than hype. As per CNBC, he stated that from Nvidia’s vantage point the company sees something fundamentally different, emphasising that the shift underway is far greater than chatbots and reflects a transformation in how global computing is done, which in turn is driving soaring demand for GPUs.

As quoted by CNBC, Huang said the first reason lies in the decline of Moore’s law, noting that the long-held expectation of CPUs becoming faster and cheaper has effectively run its course. He said sectors such as banking, e-commerce and advertising, which traditionally relied on CPU-heavy systems, are now moving to GPU-driven infrastructure, significantly increasing demand for Nvidia’s chips.

His second point concerned the evolution of modern recommendation engines. Huang stated that these systems, responsible for deciding which programme, product or advertisement appears next on digital platforms, are shifting towards generative AI. He said that this shift again moves workloads away from CPUs and onto GPUs. The third argument focused on the rise of agentic AI systems such as ChatGPT, Gemini and Grok. Huang said these tools are increasingly able to make decisions on behalf of users, a capability that requires ever-greater levels of computing power.

Huang informed that taking these trends into account leads to the conclusion that the computing resources available to fuel this new era of agentic AI are far more limited than perceived and that the demand for Nvidia’s technology is fully justified.