Why Jensen Huang Talking up Suppliers Is Worrying

Summary

Bloomberg Opinion columnist Shuli Ren discusses how Nvidia CEO Jensen Huang's glowing comments about suppliers have moved stock prices despite a lack of concrete details. She warns that the Taiwan market now looks expensive relative to the US on a P/E basis while being more cyclical, and that South Korean memory chip makers face an uncertain supercycle. Investors should be cautious rather than chasing the hype.

• Jensen Huang's supplier endorsements moved stocks significantly without detailed financial backing.
• Shuli Ren argues the AI supply chain hype overlooks stretched valuations and cyclical risks.
• Taiwan market's P/E now matches the US but carries lower earnings visibility and higher cyclicality.
• South Korean memory chip makers may not sustain earnings through 2028-2029 with the cycle only in year two.
• Caution is warranted on Asian chip stocks driven by optimism rather than fundamentals.