Nvidia CEO Jensen Huang dismisses tech market turmoil as temporary after $1tn selloff

Jensen Huang projects calm in Berlin after broad tech decline

Nvidia Chief Executive Jensen Huang has dismissed a steep global technology selloff that wiped out more than $1 trillion in market value in a single day, telling investors in Berlin that the turmoil is temporary.

Speaking at an event on Friday 16 October 2026 during a European tour, Huang directly addressed the sharp downturn across equity markets. "All of this is going to pass, and the reason for that is very simple," Huang said, adding that artificial intelligence remains at an early stage. "It’s going to be transformative. It’s going to impact in a very positive way every single industry and every single country. There’s no question it will continue, and we’re at the beginning of that."

The remarks came as rising oil prices and surging US Treasury yields triggered a heavy wave of profit-taking in high-valuation technology companies. On 14 October, West Texas Intermediate crude reached $101.91 a barrel, while the 10-year US Treasury yield touched 5.10% on 15 October. Higher bond yields increase borrowing costs and raise the discount rate used to value future earnings, hitting high-growth chipmakers particularly hard.

Chip stocks decline as market jitters spread

Despite the macroeconomic pressures, Nvidia held up significantly better than its semiconductor peers during the Friday session. The Philadelphia semiconductor index fell 3.8%, marking its eighth consecutive day of losses—its longest falling streak since 2008.

While rivals such as AMD, Intel, Micron, and Broadcom suffered major drops of between 4.5% and 6%, Nvidia declined by just 1.43%, retaining a market valuation of $5.17 trillion.

The relative resilience of Nvidia reflects investor trust in its dominant earnings profile. In its fiscal second quarter, Nvidia reported revenue of $96.22 billion with a net profit margin of 55.6%.

Upcoming earnings present next test for AI sector

Although Huang offered strong conviction about the underlying trajectory of AI infrastructure, he did not disclose new customer contracts, revised financial forecasts, or updated order details during his remarks in Germany.

Market focus now turns to Nvidia's upcoming fiscal third-quarter financial results, scheduled for release on 18 November. Management previously guided to quarterly revenue of $108.0 billion, plus or minus 2%, with a gross margin near 74.0%.

Executives have also highlighted that capital expenditure by the top five hyperscaler tech companies is projected to reach $1.3 trillion in 2027. Whether Huang’s calm outlook holds true will largely depend on whether these massive infrastructure budgets remain intact despite macroeconomic headwinds.