Nvidia CEO Jensen Huang urged investors during a June visit to Seoul to view a sharp global sell-off in technology stocks as a buying opportunity, asserting that the artificial intelligence infrastructure build-out remains in its early stages. Speaking to reporters on June 8, Huang stated that market participants should feel pleased with the downturn because it allowed them to “buy at a discount.”
Market Context and Stock Valuation
According to reporting from The Motley Fool, Nvidia’s share price had dropped roughly 13% from its May 14 closing price down to June 5, driven by investor anxiety that the artificial intelligence boom had outpaced immediate economic realities. Alongside Nvidia, fellow AI infrastructure players Alphabet and Amazon experienced steep pullbacks during the same broad market correction.
Despite the cooling stock prices, Nvidia’s underlying financials remained robust. Just three weeks prior to Huang’s comments in Seoul, the chipmaker reported fiscal 2027 first-quarter revenue soaring 85% year over year to $81.6 billion, fueled by a 92% surge in data center revenue to $75.2 billion. At the time of Huang’s June 8 remarks, the stock traded at approximately 23.5 times consensus fiscal 2027 earnings and 16.6 times fiscal 2028 earnings, metrics that analysts considered reasonable given the company’s rapid growth trajectory.
Performance Following Huang’s Guidance
Investors who followed Huang’s advice to buy the dip have seen positive returns, though performance varies depending on portfolio composition. According to market data analyzed by The Motley Fool, Nvidia’s shares climbed roughly 2.2% to 5.1% over the subsequent two and a half months, slightly outperforming the S&P 500 index over the same window.
Investors who broadened their approach to include a basket of major artificial intelligence hyperscalers—such as Microsoft and Amazon, which posted strong subsequent earnings gains—realized even higher returns, averaging roughly 8.5% over the same post-June 8 timeframe.
Infrastructure Spending Projections
Major hyperscalers including Amazon, Microsoft, Meta Platforms, and Alphabet are projected to spend a combined $730 billion on artificial intelligence infrastructure through 2026.
Nvidia itself reported generating $48.6 billion in free cash flow during its first fiscal quarter while keeping capital expenditures on property and equipment to roughly $1.8 billion. However, the company maintained $119 billion in manufacturing, supply, and capacity commitments at the close of the quarter to secure future production.
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