Economics professor Steve Hanke has taken aim at Nvidia (NASDAQ: NVDA) CEO Jensen Huang, warning that the artificial intelligence (AI) sector may be dangerously overvalued. 

Hanke criticized Huang’s optimistic projections for AI firms, describing them as “on another planet” and suggesting that the forecasted revenues are unlikely to materialize. 

According to Hanke, the current excitement surrounding AI resembles past market bubbles, where investor expectations far outpaced economic realities, he said in an X post on November 2.

Hanke’s remarks came in direct response to Huang’s statements during a company presentation in Washington on October 28. 

Huang dismissed the notion of an AI bubble, arguing that the industry is undergoing a natural transition from traditional general-purpose computing to accelerated computing. 

He highlighted AI’s reasoning and research capabilities, claiming the technology now generates intelligence worth significant investment. 

“I don’t believe we’re in an AI bubble. <…> All of these different AI models we’re using — we’re using plenty of services and paying happily to do it,” he said. 

AI market hype 

Despite Huang’s reassurances, Hanke remains unconvinced. He argued that the AI market is driven more by hype than genuine financial sustainability, with projected revenues far exceeding the realistic profit potential of the technology.

Overall, Nvidia, the world’s most valuable company, has benefited from surging AI-related spending. 

However, its revenue remains heavily dependent on a small group of data center operators. Analysts warn that this concentration could amplify risks if AI investment slows or fails to meet expectations, raising concerns about a potential AI bubble.

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