Nvidia CEO Jensen Huang Urges Investors to Buy AI Stocks at a Discount
During the sharp global technology stock sell-off in June, Nvidia CEO Jensen Huang told investors in Seoul that they should be happy to “buy at a discount.” Speaking to reporters on June 8, Huang asserted that the artificial intelligence infrastructure build-out remains in its early stages, framing market volatility as an investment opportunity rather than a systemic retreat, according to reporting from The Motley Fool.
The June Sell-Off and Nvidia’s Market Valuation
Market turbulence in early June followed a run-up in tech equities. On May 14, Nvidia stock peaked above $235 per share, pushing its market capitalization to $5.7 trillion before investor anxiety regarding AI spending saturation triggered a correction. Over the subsequent weeks, Nvidia shares dropped roughly 13% to 15%, while major hyperscalers like Alphabet and Amazon experienced sharp pullbacks, according to analysis by The Motley Fool.
Despite the price correction, Nvidia’s underlying financials remained robust. The company reported fiscal 2027 first-quarter earnings showing revenue surging 85% year over year to $81.6 billion, driven largely by a 92% spike in data center revenue to $75.2 billion. Trading at roughly 23.5 times fiscal 2027 projected earnings around the time of Huang’s comments, the stock offered a compelling valuation for long-term holders, particularly as major technology firms continued scaling up their infrastructure investments.
Hyperscaler Spending and Infrastructure Commitments
Huang’s optimistic outlook relies on multi-year capital expenditure plans from the world’s leading cloud providers. Major hyperscalers including Amazon, Microsoft, Meta Platforms, and Alphabet are projected to spend a combined $730 billion on artificial intelligence infrastructure throughout 2026. These investments shift much of the physical data center construction and operational cost onto Nvidia’s partners, insulating the chipmaker from immediate real estate and facility overhead.
Even so, supply chain obligations remain substantial. Nvidia recorded $119 billion in manufacturing, supply, and capacity commitments at the close of its fiscal first quarter, reflecting the massive scale required to secure next-generation production lines.
Evaluating the Post-Dip Market Performance
In the weeks following Huang’s remarks in Seoul, where he also finalized partnerships with South Korean memory chipmaker SK Hynix for next-generation AI components, market dynamics have shifted modestly. As of August 21, 2026, Nvidia shares traded at $214.72, yielding a modest gain that slightly lagged the broader S&P 500’s performance over the exact same timeframe. Wall Street analysts have steadily increased forward earnings estimates to $9.01 per share for fiscal 2027 and $13.00 for fiscal 2028, keeping valuation multiples stable near 23.8 times current-year earnings.
Diversified baskets of AI equities have occasionally outperformed single-stock holdings during this recovery phase, underscoring the interconnected nature of modern cloud infrastructure.
As the market awaits upcoming quarterly financial reports, the long-term thesis articulated in Seoul faces a continuous test of sustained corporate earnings growth.