When the CEO of the world’s most valuable company tells you to back up the truck on his own sector, it pays to listen. Jensen Huang did exactly that recently, framing the latest pullback in AI stocks as a gift rather than a warning. The logic mirrors a principle Warren Buffett spent decades drilling into investors: if you liked the business at a higher price, you should like it more at a discount.
Huang told a global audience that the current weakness in AI equities represents a “huge buying opportunity”. That conviction lines up with what the underlying numbers at his own company are doing, and with what other large institutional allocators are signaling in real time.
NVIDIA: The Numbers Behind the Conviction
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) trades at roughly $209 after a 6% slide from May 11 through June 5.
The fundamentals supporting Huang’s conviction are difficult to argue with. NVIDIA’s most recent quarter, filed May 20, 2026, delivered revenue of $81.61 billion, up 85% year over year, with non-GAAP EPS of $1.87 against a $1.77 consensus. Data Center revenue alone reached $75.25 billion, up 92%, and Data Center Networking surged 199%. Free cash flow hit $48.55 billion in a single quarter. The full SEC 8-K filing details a company guiding to $91.0 billion in Q2 revenue and sitting on $119 billion in supply commitments.
Management is putting the balance sheet behind the conviction. The board authorized an additional $80 billion in share repurchases and raised the dividend from $0.01 to $0.25 per quarter. Roughly $20 billion was returned to shareholders in Q1 FY27 alone through buybacks and dividends. That level of capital return signals management’s confidence in sustained demand.
Huang’s Own Words Echo the Thesis
On the most recent earnings call, Huang described the moment as “the largest infrastructure expansion in human history” and said NVIDIA is “uniquely positioned at the center of this transformation as the only platform that runs in every cloud, powers every frontier and open source model, and scales everywhere AI is produced.” One quarter earlier he called Grace Blackwell “the king of inference today, delivering an order-of-magnitude lower cost per token.”
Partnerships back the rhetoric. OpenAI has committed to at least 10 gigawatts of NVIDIA systems, Anthropic to an initial gigawatt, and Meta to a multigenerational deal spanning millions of Blackwell and Rubin GPUs.
The Berkshire Signal on Alphabet
The institutional confirmation is just as telling. Alphabet (NASDAQ:GOOGL) recently announced an $80 billion equity raise to fund AI infrastructure, including a $10 billion private placement from Berkshire Hathaway. That commitment came under Berkshire CEO Greg Abel, who took the reins on January 1, 2026, and represents the kind of contrarian capital deployment value investors recognize on sight. Alphabet shares are down 7% over the past month yet up 120% year over year, with Google Cloud growing 63% in Q1 2026 and a backlog that nearly doubled to over $460 billion.
What to Watch Next
Prediction markets reflect crowd conviction in the dip narrative. Polymarket contracts price an 88% probability that NVDA finishes the week above $190, with $200 emerging as the consensus June price target at 59% conviction. Goldman Sachs CEO David Solomon recently described the market as being in “greed mode” with ample liquidity, and Goldman lifted its S&P 500 year-end target to 8,000.
The classic Buffett framing applies cleanly here: when a business with accelerating revenue growth, expanding margins, and $119 billion of forward supply commitments trades 6% lower than it did three weeks ago, the math does the talking. Huang is simply pointing at it.
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