Nvidia’s Huang Says AI Buildout Will Keep Chip Downturn at Bay

The semiconductor industry has traditionally moved with consumer-electronics demand, inventory corrections and capital-spending cycles. Nvidia Chief Executive Jensen Huang argues that the current expansion is different: generative AI is forcing data centers to shift from conventional computing to accelerated computing, while companies and governments build an entirely new layer of AI infrastructure. That transition could support chip demand well beyond a typical cyclical rebound.

Huang said recently that the AI industry remains in the early stages of infrastructure deployment, making a near-term semiconductor downturn or an imminent bursting of an AI bubble unlikely. He estimated that the global chip industry could grow to five to 10 times its current size over the next decade as computing infrastructure is rebuilt. Huang did not provide a specific revenue figure, investment amount or annual timetable for that expansion.