Nvidia CEO Jensen Huang said the semiconductor sector won’t experience an imminent downturn, citing industrial-driven rather than seasonal demand as the reason for his optimism. He estimates the industry must become five to ten times larger over the next decade to meet artificial intelligence infrastructure needs. Hyperscalers are committing hundreds of billions of dollars annually in capital expenditures to build out AI infrastructure, with Alphabet even reporting negative cash flow. Huang acknowledged a bust will eventually occur, but argues that constraints in chips, land, power, and construction workers are extending the timeline. The phrase « this time is different » has become a notorious red flag in finance, notably during the dot-com bubble.
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