Huang said “this will all pass,” with Nvidia falling just 1%, while the tech sector as a whole lost more than $1 trillion in a single day.
AMD and Intel each fell nearly 6% as investors sold riskier chip names and held Nvidia, whose 56% net margin made it the safe haven of the group.
Oil surpassing $101 per barrel and the 10-year Treasury yield at 5.10% led to the selling, and these macroeconomic forces are ones that Huang’s AI optimism cannot counter.
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Jensen Huang, general manager of Nvidia (NASDAQ:NVDA), spent Friday October 16, 2026 touring Europe. At an event in Berlin, he gave investors a simple answer to a difficult session: “This will all pass, and the reason is very simple.”
BenBen Lam via YouTube
The interview was published after the close and the time he spoke was not disclosed, so his remarks should be read as having been made during the drop. Tech stocks lost more than a trillion dollars on the same day oil hit its highest level in five months.
The Nasdaq 100 fell 2.5% to 29,187.55, leaving it about 7% below its last all-time high. The S&P 500 lost 1.1% and the Philadelphia semiconductor index fell 3.8% for its eighth straight day of decline, its longest such streak since 2008.
Nvidia slipped just 1.43% to $214.13 and retained a market value of $5.17 trillion. It then rose 0.21% after hours to $214.57. What you need to decide is whether Huang’s confidence speaks to the forces that actually caused the sale.
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Huang proposed sentencing but no new figures
Huang added: “This is going to be transformative. It will have a very positive impact on every industry and every country. There is no doubt that this will continue, and we are only at the beginning.” He argued that the benefits of technology will soon outweigh investors’ concerns.
He made no new commitments. Huang announced no orders, no revised forecasts and no customers. His comments therefore reflect the point of view of a leader who has everything to gain from continued spending on AI.
His perspective still matters because he can view the order books, which outsiders cannot see. During the August earnings conference call, he said: “Right now we have 70% supply…Our demand is much higher than that.”
Investors held on to Nvidia and sold riskier chip names
AMD (NASDAQ:AMD) fell 5.95%, Intel (NASDAQ:INTC) lost 5.79%, Micron technology (NASDAQ:MU) fell 5.63% and Broadcom (NASDAQ:AVGO) fell 4.52%.
When investors reduced their risks, they kept the company that was making the biggest profits. Nvidia’s second-quarter revenue was $96.22 billion and its net margin was 55.6%.
His size also works against him. With earnings 43 times higher, much of the long-term performance is already accounted for, and a company of this size drags down the major indexes every time they fall.
Huang answered a different question than the one asked by the market
The sale was made thanks to oil and interest rates. West Texas Intermediate crude reached $101.91 per barrel on October 14, 2026 and the 10-year Treasury yield settled at 5.10% on October 15.
Higher yields raise the discount rate, the rate investors use to evaluate future earnings, and that hits highly valued growth stocks first. Huang’s argument is about technology, which therefore offers little protection if oil continues to rise and rates follow.
Financing is the other risk. Concerns about AI funding had already driven chip stocks lower before Oct. 16, and a spending cycle can disappoint even when the technology performs well. Management cited expected capital spending for the five largest hyperscalers of $1.3 trillion in 2027, and any reduction in that figure would matter more than any interview (we profiled seven vendors tracking the same expansion, from power to cooling, in a free report you can grab here).
What Nvidia’s Relative Strength Signals Ahead of November Earnings Report
Nvidia has held up better than its peers. It closed about 12% below its 52-week high of $243.37 and well above its low of $164.27. The way investors have sorted the chip group shows that Nvidia is the AI stock they trust the most under pressure.
NVDA Profit Explorer — 24/7 on Wall St.
Huang is probably right about demand, although the timing of the recovery depends on oil and yields that he can’t control. Expect more swings as the chip losing streak continues.
The results report expected on November 18 constitutes a test. Management has guided for third-quarter revenue of $108.0 billion, plus or minus 2%, with a gross margin near 74.0%.
If revenue falls below this range, or if management lowers its forecast of growth by around 70% for fiscal 2028, Huang’s prediction that the decline will pass will be wrong, and the bullish case for the stock weakens with that.
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