At an internal meeting at Nvidia, Jen-Hsun Huang admitted: It's too difficult, "doing well is an AI bubble," "if it's slightly below expectations, the entire world will collapse."

Original author: Wall Street Journal, Bu Shuqing

As the global market is caught in the debate over the “AI bubble”, even the most successful company, Nvidia, is facing unprecedented scrutiny. As a core supplier of AI infrastructure, every move made by Nvidia is seen as a barometer for the overall health of the industry.

According to a report from Business Insider on Friday, Nvidia CEO Jensen Huang admitted during an internal meeting on Thursday that despite the company delivering an “incredible” earnings report, “the market is not appreciative.” This rare acknowledgment from the head of the chip giant highlights that Nvidia is currently facing a dilemma: outstanding performance is accused of fueling the AI bubble, while poor performance is viewed as evidence of the bubble bursting.

Jensen Huang stated at the meeting that market expectations for Nvidia have risen to a level that puts the company in a kind of “no-win situation.” He bluntly said: “If we deliver a bad quarterly report, even if it’s just a little bit off, and looks slightly unstable, the whole world will collapse.”

fall into a “no-win situation”

According to meeting recordings obtained by Business Insider, Huang Renxun elaborated on Nvidia's current situation during an internal meeting on Thursday. “If we deliver a poor quarterly report, it will be evidence of the existence of the AI bubble. If we deliver an excellent quarterly report, we are fueling the AI bubble,” he said.

Jensen Huang pointed out that the market's expectations for NVIDIA have risen to a level where it is difficult for the company to satisfy investors, regardless of its performance. He mentioned the discussions online about the company's immense economic influence, saying, “You should take a look at some of the jokes on the internet. Have you seen any? We are basically supporting the entire planet — this is not an exaggeration.”

He also cited some posts stating that Nvidia's performance is helping the United States avoid an economic recession, highlighting that the market views this chip manufacturer as a key indicator of macroeconomic health.

NVIDIA's financial report released on Wednesday showed a 62% acceleration in revenue growth for the third quarter, with guidance for this quarter exceeding expectations. Jensen Huang refuted claims about the growing AI bubble during the earnings announcement. However, the market reaction has been volatile: the stock price rose on Wednesday (initially over 6%) but fell again on Thursday (plummeting 7%). The company's market value has evaporated by about $500 billion in a matter of weeks.

At the meeting, Jensen Huang jokingly mentioned the “good old days” when the company's market cap reached $5 trillion. “Historically, no one has lost $500 billion in a few weeks,” he said, “you have to be worth a lot to lose $500 billion in a few weeks.”

This market cap fluctuation reflects that investor confidence in the AI investment boom is wavering, even in the face of strong performance data, and the market still has doubts about sustainability.