The market bears took full advantage of the powerful fatigue that has hung over the artificial intelligence sector for several weeks.
Red Friday on Wall Street and panic in Asia
Friday’s session in the U.S. delivered a ruthless blow to the valuations of giants – the immediate trigger was strong U.S. labor market data. Fear of a hawkish Fed decision and a rate hike only intensified concerns about an AI bubble bursting, which have been circulating in the media for several weeks.
Recent reports that Microsoft banned its developers from spending budgets using Claude Code electrified investors. The domino effect quickly spread to Asian markets as well. Monday’s opening in Seoul resembled a false start in the 100‑meter sprint – nerves simply took over.
The benchmark Kospi index plunged sharply, at one point losing almost 10%. Fear of an overheating AI market caused global funds to start liquidating their positions in tech stocks that had previously driven a spectacular bull run. Players who had recently bought everything without scrutiny, with “AI” in the name, suddenly began to panic and realize gains.
Nvidia shares fell on Friday by as much as 6.20%, landing at 205.10 USD.
Chart. Nvidia (NVDA) stock price.
Source: TradingView
See also: Nvidia, Intel and AMD on the brink? AI devours the familiar industry
Jensen Huang continues to heat the atmosphere: “Buy on the sale”
When blood is spilled on the trading floor and analysts race to paint bleak scenarios, true leaders do not bury their heads in the sand and see new opportunities. Jensen Huang, the charismatic CEO of Nvidia Corp., responded to market turbulence with the precision of an experienced strategist like Sun Tzu. Instead of assuring the stability of the AI sector, Huang stated that the temporary correction of Nvidia’s stock price is simply a market promotion that one should not miss out on.
“Regardless of what happened on the market, you should be very satisfied because now you can buy at lower prices. Everyone should be very excited,” added the Nvidia CEO, unequivocally cutting speculation about a supposed AI bubble burst.
For the Nvidia boss, the business fundamentals remain stable. He compared the current AI infrastructure to the birth of the WWW at the end of the 20th century. According to Huang, the technological breakthrough already changes the way we work, live, and spend leisure time, generating huge, long‑term demand for modern data centers and powerful graphics chips.
Huang’s vision is not just catchy slogans thrown at press conferences. Behind the market turmoil, Nvidia staged a key business duel by signing a long‑term strategic agreement with South Korean giant SK Hynix Inc.
The goal of this alliance is, of course, joint design and production of future generations of advanced HBM memory, essential for powering AI supercomputers. It’s a powerful blow to competitors, including Samsung Electronics Co., which also fights for a leading position in this highly lucrative segment.
Huang personally signed the pact, meeting in Seoul with the chairman of SK Group, Chey Tea‑won. This partnership gives Nvidia a guarantee of stable supply amid massive demand, and SK Hynix delivers huge profits in the billions of USD. The AI bubble does not burst – it simply grew slower for a moment.
See also: Trump in Beijing. Nvidia shares won’t escape the bull? The giant’s CEO counts on a US‑China agreement.
Source: Bloomberg.
