Nvidia’s Huang says AI market turmoil ‘is going to pass’

Nvidia CEO Jensen Huang spent the end of a rough week for chip stocks defending one of his company's biggest customers and arguing that demand for AI is still strong. Nvidia shares held up better than most chipmakers during a broad selloff. Its key partner CoreWeave ↘ 0.44% could not hold on to the bounce it got from Huang's support.

"CoreWeave's strength is improving every day," Huang told Bloomberg at an event in Stockholm on Thursday, Oct. 15. "I'm optimistic. Their cost of capital is actually decreasing." He said he saw no need for Nvidia to step in with financial support for the company, according to U.S. News. In a podcast released the same day, Huang said customers were placing AI chip orders almost daily, Yahoo Finance reported.finance.yahoo.com+2

CoreWeave's debt in focus

CoreWeave shares fell 15.5% on Wednesday as yields on some of its bonds jumped, Kuwait Times reported. Hotter-than-expected U.S. inflation data, which raised bets on more Federal Reserve rate hikes, added to the selling. The price of insuring CoreWeave's debt against default implies a nearly 63% chance of default within five years, U.S. News reported. That is despite a deal under which Nvidia, which owns about 10% of CoreWeave, will buy any unsold capacity through April 2032.kuwaittimes.com+1

CoreWeave shares rose about 6% on Thursday after Huang spoke. They then fell almost 12% on Friday and lost about a quarter of their value over the week, CNN reported. Speaking in Berlin on Friday, Huang brushed off the turmoil. "All of this is going to pass," he told Bloomberg, adding that AI will "impact in a very positive way every single industry and every single country."bloomberg.com+1

Nvidia outperforms its peers

Nvidia rose slightly in premarket trading on Friday while Advanced Micro Devices ↗ 1.76%, Broadcom ↗ 1.78% and Intel ↗ 2.43% fell, TipRanks reported. Nvidia ended the regular session lower but fell much less than the wider sector. A closely watched semiconductor index dropped 3.8% on Friday, its eighth straight decline, and lost 11.4% for the week, its worst week since April 2025, CNN reported. The Nasdaq Composite fell 2.14% and the S&P 500 fell 1.09%, the worst week for both since June.tipranks.com+1

Ives sees a buying opportunity

Tech analyst Dan Ives called the pullback a chance to buy Nvidia rather than a warning about AI financing, Seeking Alpha reported via TradingView. He kept an Outperform rating and a $300 price target. Ives said demand for Nvidia's chips is limited more by supply than by what customers want to buy, and that much of it is backed by contracts and paid for with cash flow from the large cloud companies.tradingview.com

Some strategists are less sure. Barclays ↘ 2.72% strategist Emmanuel Cau warned that the best of the AI trade may be over as investors look harder at funding costs and returns, TipRanks reported. He also noted that chip demand remains strong.tipranks.com

"Weeks like this one have marked the entry points of this cycle, not the end of it," Ives said.