Here’s how Nvidia’s Jensen Huang answers the AI bubble question

Core Viewpoint - Nvidia's CEO Jensen Huang believes there is no AI bubble, stating that the industry is in the early stages of a ten-year development of a new computing platform, with AI now being profitable and useful for both consumers and corporations [1]. Group 1: Nvidia's Market Position - Nvidia became the first company to achieve a market capitalization of $5 trillion, highlighting its significant market presence [2]. - Nvidia shares rose in premarket trading, reflecting a 51% increase in stock value this year [4]. Group 2: AI Industry Insights - The S&P 500 index is nearing 7,000, driven by a rally in a few megacap tech stocks, leading to intensified debates about sector valuations and the term "bubble" being frequently used [5]. - Despite concerns about bubble valuations, many leading AI firms have funded their capital expenditures through strong operating cash flows, with the Big Four tech firms expected to generate over $200 billion in free cash flow after capex by 2025 [6]. Group 3: Regulatory Challenges - Huang addressed the potential export of Blackwell AI chips to China, noting that while he would like to sell them there, final approval rests with President Trump, and he acknowledged that China has its own AI chip production capabilities [3].