{"slug": "nvidia-ceo-jensen-huang-denies-the-chip-boom-will-go-bust-soon-and-actually-the", "title": "Nvidia CEO Jensen Huang denies the chip boom will go bust soon and actually utters the infamous phrase ‘this time is different’", "summary": "Nvidia CEO Jensen Huang told Axios that the AI chip boom will not end soon, arguing that the current expansion is industrially driven rather than seasonal or demand-driven, and that the industry must grow five to ten times larger over the next decade. Huang acknowledged the infamous phrase 'this time is different' but insisted that the fundamental shift in computing justifies sustained investment, despite concerns over massive capital expenditures and negative cash flow at companies like Alphabet.", "body_md": "The semiconductor industry is notorious for going through boom-and-bust cycles, but [Nvidia](https://fortune.com/company/nvidia/) CEO Jensen Huang doesn’t think a downturn is imminent, although he echoed reasoning that’s been used to justify past bubbles.\n\nAfter chip stocks soared on the AI frenzy, they have sold off hard in recent weeks amid renewed fears about the sustainability of massive capital expenditures. That’s despite strong earnings and guidance from top chipmakers as well as persistent shortages due to insatiable demand.\n\nIn an [interview with Axios cofounder Mike Allen](https://www.youtube.com/watch?v=fr1IQspixmM), Huang was asked if the sector is due for a bust, and he replied “no, not for a while.” Allen then offered “so this time is different?”\n\n“This time is different because this is not demand driven,” Huang said. “This time is different because it’s not seasonal. It’s not demand driven means seasonal-demand driven. This is industrially driven, meaning the fundamental technology of computers is changing.”\n\nHe added that the world needs a whole new layer of infrastructure, namely AI, which requires chips, estimating that the industry must become five to 10 times larger over the next decade.\n\nOf course, coming from the CEO of the top AI chip supplier, such optimism is not surprising. But what’s notable is his endorsement of “this time is different.”\n\nThat’s been used in the past to argue why astronomical gains can continue on their trajectory and continue defying fundamentals or logic, such as during the dot-com bubble.\n\nThe phrase is now so infamous it’s considered a red flag whenever there’s even a hint of it creeping into buoyant forecasts, similar to now-rueful declaration of “mission accomplished.”\n\nMeanwhile, hyperscalers have been committing hundreds of billions of dollars a year on capital expenditures to build out AI infrastructure as quickly as possible.\n\nWhile they previously drew on their enormous cash-generating operations for the capex, it’s no longer enough anymore, and even [Alphabet recorded negative cash flow](https://fortune.com/2026/07/23/ai-big-tech-never-spend-more-than-earns-wall-street-hates-it/). As a result, tech giants are [issuing more debt](https://fortune.com/2026/07/17/ai-boom-debt-blitz-investor-demand-hyperscaler-bond-issuance/).\n\nHuang was pressed on whether he’s worried that Nvidia’s customers are tapping the bond market to buy his chips. He answered that he’s not, pointing to the shift in computing.\n\n“So this future is a whole new way of doing computing that’s fundamentally different than the past, and we need a lot more computers,” he explained.\n\nAI has also been profitable for companies like Anthropic, especially as customers discover how useful agents can be, Huang noted. AI is now at an inflection point, where more of the technology must be built as it generates profits and boosts productivity.\n\nHe acknowledged that the bubble will burst someday, but it won’t happen anytime soon as the AI buildout is still in the early stages.\n\nAnd the limited supplies of chips, land, power, and construction workers that are holding back even faster growth are actually beneficial, as they push out the timeline when supply eventually exceeds demand, Huang argued.\n\n“We basically are constrained in every single direction, in every single way,” he said. “That constraint is good. That constraint is what holds the system back. So that gives us plenty of time to go build out these infrastructure.”\n\n**Subscribe to Fortune Gulf Brief**. Every Tuesday, this new newsletter delivers clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it.", "url": "https://wpnews.pro/news/nvidia-ceo-jensen-huang-denies-the-chip-boom-will-go-bust-soon-and-actually-the", "canonical_source": "https://fortune.com/2026/07/25/nvidia-ceo-jensen-huang-chip-stocks-boom-bust-soon-this-time-is-different/", "published_at": "2026-07-25 17:22:26+00:00", "updated_at": "2026-07-25 18:06:09.638725+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-chips", "ai-infrastructure", "ai-startups", "ai-policy"], "entities": ["Nvidia", "Jensen Huang", "Axios", "Mike Allen", "Alphabet", "Anthropic"], "alternates": {"html": "https://wpnews.pro/news/nvidia-ceo-jensen-huang-denies-the-chip-boom-will-go-bust-soon-and-actually-the", "markdown": "https://wpnews.pro/news/nvidia-ceo-jensen-huang-denies-the-chip-boom-will-go-bust-soon-and-actually-the.md", "text": "https://wpnews.pro/news/nvidia-ceo-jensen-huang-denies-the-chip-boom-will-go-bust-soon-and-actually-the.txt", "jsonld": "https://wpnews.pro/news/nvidia-ceo-jensen-huang-denies-the-chip-boom-will-go-bust-soon-and-actually-the.jsonld"}}