{"id":556413,"date":"2026-08-02T17:20:11","date_gmt":"2026-08-02T17:20:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/556413\/"},"modified":"2026-08-02T17:20:11","modified_gmt":"2026-08-02T17:20:11","slug":"jensen-huang-says-the-chip-industrys-usual-boom-bust-cycle-wont-hit-for-a-while-a-bullish-signal-for-ai-stocks","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/556413\/","title":{"rendered":"Jensen Huang Says the Chip Industry’s Usual Boom-Bust Cycle Won’t Hit for a While, a Bullish Signal for AI Stocks"},"content":{"rendered":"\n

The chip industry has historically been cyclical, going through cycles that average about four years. With semiconductor stocks<\/a> undergoing a correction after a period of large gains, it’s reasonable to ask if the cycle has peaked. <\/p>\n

Nvidia (NASDAQ: NVDA) CEO Jensen Huang doesn’t think so. In a recent sit-down with Axios co-founder Mike Allen, he said that he doesn’t expect a bust any time soon and that the semiconductor industry still has plenty of room to grow. <\/p>\n

Missed Nvidia in 2009? This Rare Signal Is Flashing Again.\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/a> <\/p>\n

\"Nvidia<\/a> Nvidia CEO Jensen Huang. Image source: Nvidia. Jensen Huang isn’t expecting a chip bust <\/p>\n

During the Axios interview, Huang said his core argument is that this chip boom is different because it’s not driven by consumer demand. As he puts it, “This is industrially driven, meaning the fundamental technology of computers is changing.” <\/p>\n

He says that AI is a new layer of infrastructure comparable to energy, the internet, roads, and railroads. This intelligence layer requires chips, making the current demand fundamentally different from consumer-driven demand cycles, in which more chips were needed for computers and phones. <\/p>\n

The most exciting part of Huang’s interview, at least for investors in AI stocks<\/a>, is his assessment of the semiconductor industry. He believes that it needs to be between five and 10 times larger than it is today. If he’s correct, that’s a great bull case for Nvidia and other chipmakers. <\/p>\n

Is Huang correct about the chip industry? <\/p>\n

As the CEO of the largest chipmaker, Huang’s not exactly an unbiased observer. He has a financial incentive to talk up demand for his company’s products. It’d be surprising to hear him say that the cycle has peaked and it’s downhill from here. <\/p>\n

There’s also valid skepticism about the AI build-out. Hyperscalers are spending hundreds of billions on data centers. Investors are understandably concerned about the sustainability of this spending — for example, Alphabet’s free cash flow turned negative for the first time in Q2 2026 due to $44.9 billion in capital expenditures (capex). <\/p>\n

That said, recent compute demand supports Huang’s expectations. Nvidia consistently exceeds expectations and raises revenue guidance each quarter. Intel also delivered excellent numbers in Q2 2026 with 25% year-over-year revenue growth. CEO Lip-Bu Tan called it the company’s strongest revenue growth in more than 15 years and tied growth to AI-driven compute demand. <\/p>\n

Huang believes the semiconductor industry is in an early cycle, not a late one. The best way to evaluate this is to monitor earnings releases from hyperscalers and chipmakers. If hyperscalers maintain or raise capex and chipmaker earnings continue to rise, both would indicate that the semiconductor industry remains in a boom period. <\/p>\n

Should you buy stock in Nvidia right now? <\/p>\n

Before you buy stock in Nvidia, consider this: <\/p>\n

The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $386,727!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,232,139!* <\/p>\n

Now, it’s worth noting\u00a0Stock Advisor’s total average return is 906% \u2014 a market-crushing outperformance compared to 208% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n

See the 10 stocks \u00bb<\/a> <\/p>\n

*Stock Advisor returns as of August 2, 2026. <\/p>\n

Lyle Daly<\/a> has positions in Alphabet and Nvidia. The Motley Fool has positions in and recommends Alphabet, Intel, and Nvidia. The Motley Fool has a disclosure policy<\/a>. <\/p>\n

Jensen Huang Says the Chip Industry’s Usual Boom-Bust Cycle Won’t Hit for a While, a Bullish Signal for AI Stocks<\/a> was originally published by The Motley Fool <\/p>\n","protected":false},"excerpt":{"rendered":"The chip industry has historically been cyclical, going through cycles that average about four years. With semiconductor stocks…\n","protected":false},"author":2,"featured_media":556414,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,273675,18973,111,139,1042,69,49726,145],"class_list":["post-556413","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-axios","tag-jensen-huang","tag-new-zealand","tag-newzealand","tag-nvidia","tag-nz","tag-semiconductor-industry","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/556413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=556413"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/556413\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/556414"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=556413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=556413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=556413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}