Nvidia’s Jensen Huang Says AI Sector ‘Long, Long Away’ From Big Short-Style Collapse: Report

In an interview with Sky News, Nvidia CEO said the AI sector is in early growth stages, far from a collapse.

• Nvidia CEO Jensen Huang's comments come after Big-Short investor Michael Burry revealed short positions against Nvidia and other AI companies. 
• Huang emphasized that AI requires extensive infrastructure investment, which has increased capital expenditure.
• He added that Nvidia has already seen “great returns” from its own AI operations.

Nvidia CEO Jensen Huang reportedly said on Wednesday that the artificial intelligence sector remains far from a market collapse akin to the Big Short, despite warnings from investor Michael Burry. 

“We are long, long away from that,” Huang told Sky News, emphasizing that AI is still in the early stages of a “very long build out.” Huang noted that AI is unique in requiring significant infrastructure investment, which is why the capital expenditure has been increasing across the board. 

"I would say that we're in the beginning of a very long build out of artificial intelligence.”
– Jensen Huang, CEO and Co-Founder, Nvidia

Nvidia’s stock edged 0.5% lower in pre-market trade amid broader weakness in the market. On Stocktwits, retail sentiment around the AI bellwether trended in ‘bullish’ territory, accompanied by ‘high’ levels of chatter over the past day. 

Nvidia’s ‘Great Returns’ On AI

Huang also said that Nvidia has already seen “great returns” from its AI-related operations, driving further expansion. Huang noted that better training of AI has led to much "better" and "useful" answers, and that means "the AIs have become profitable".

“When something is profitable, the suppliers want to make more of it, and that’s the reason the infrastructure build-out is accelerating,” he said.

Michael Burry’s Concerns

Huang’s comments come amid recent market turbulence. Scion Asset Management’s Michael Burry revealed significant short positions against Nvidia and other tech stocks earlier this week as he returned to social media after more than two years to warn of a potential bubble.  "Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play," he wrote on X.

Huang is not the only CEO to dismiss Burry’s concerns. On Tuesday, Palantir CEO Alex Karp called out Burry's bet, arguing that shorting the two companies that are actually making money from AI is illogical. 

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