Nvidia CEO Jensen Huang said he does not expect a chip industry bust any time soon, arguing that current semiconductor demand is industrially driven because "the fundamental technology of computers is changing." In an interview with Axios co-founder Mike Allen, Huang described AI as a new infrastructure layer comparable to energy, the internet, roads, and railroads, which requires chips and makes current demand fundamentally different from consumer-driven cycles. He believes the semiconductor industry needs to grow five to 10 times larger than it is today. The chip industry has historically been cyclical, with cycles averaging about four years, and semiconductor stocks have undergone a correction after large gains. Huang’s assessment is bullish for AI stocks, though he has a financial incentive to talk up demand. Recent earnings support his expectations: Nvidia consistently exceeds expectations and raises revenue guidance each quarter, while Intel delivered 25% year-over-year revenue growth in Q2 2026, which CEO Lip-Bu Tan called its strongest revenue growth in more than 15 years, tied to AI-driven compute demand. However, skepticism exists about the AI build-out, as hyperscalers spend hundreds of billions on data centers; Alphabet’s free cash flow turned negative for the first time in Q2 2026 due to $44.9 billion in capital expenditures. Huang believes the semiconductor industry is in an early cycle, not a late one.