Don’t mistake a CEO’s departure for the end of an entire tech revolution!

Whenever a major personnel change occurs at a tech giant, the market always seems to ask: Is the bubble about to burst?
This time, Jensen Huang’s departure from Nvidia has made investors even more concerned. After all, AI-related stocks have surged over the past few years, and many companies’ valuations have already priced in several years of future growth.
But two things must be distinguished: the long-term development of the AI industry and the short-term prices of AI stocks.
Artificial intelligence still has plenty of room to grow, and businesses need model training, inference computing power, and data center infrastructure. However, technological progress doesn’t mean every AI company can make money, nor does it mean all AI-related stocks deserve high valuations.
If investors start reassessing risk, companies with little revenue, few orders, and no business model may be more vulnerable than those with actual operations.
Nvidia’s management change could trigger a repricing of AI assets, but it doesn’t directly prove that the AI industry has lost its growth momentum.
To put it humorously, a restaurant owner’s resignation doesn’t mean the whole food street has to shut down; but if the restaurant was only attracting customers with its decor, then there’s real cause for concern. #每周来晒 and #JensenHuangResigns
When it comes to future AI investments, listen to the stories, but pay even closer attention to the financial reports. $NVDA