Nvidia CEO Huang Says AI Boom Will Hit 'Period of Digestion' in Two to Three Years

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Nvidia Corp. CEO Jensen Huang said the artificial intelligence infrastructure boom will eventually produce more computing capacity than the market needs, but he does not expect that turning point for another two to three years. Speaking on The Ezra Klein Show, Huang said demand and supply will eventually invert and markets will slow into a "period of digestion" that could last six months, nine months or a year, though he added it will not happen next year or in the next couple of years. He also argued that AI labs should not release systems they cannot control. Nvidia reported second-quarter revenue of $96.2 billion, up 106% from a year earlier, while Data Center revenue surged 117% to $89 billion. TrendForce estimates the world's nine largest cloud providers will spend more than $886.7 billion this year, up about 90%, before capital expenditures climb to roughly $1.3 trillion in 2027, and it raised its 2026 AI server shipment growth forecast to nearly 31%. Former Fidelity fund manager George Noble compared the boom to "dot-com and subprime all merged in one," and Reuters reported investors are demanding higher yields on AI-linked debt as hyperscalers prepare for another surge in borrowing. A Polymarket market puts the probability of an AI-industry downturn by Dec. 31 at 10%, resolving "Yes" only if at least three specified stress events occur within 90 days, including Nvidia falling 50% from its all-time high, the SOXX semiconductor ETF falling 40%, or the bankruptcy of OpenAI or Anthropic. Nvidia shares closed Wednesday down 1.5% at $225.51 and were about 1% lower in Thursday premarket trading.

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Artificial Intelligence▲ · 1 stocks
NVIDIA Corporation
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CEO Huang says AI infrastructure demand will eventually invert into a 'period of digestion' in two to three years, while Nvidia's Q2 revenue jumped 106% and Data Center revenue rose 117%.

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