Jensen Huang, the CEO of Nvidia (NASDAQ: NVDA), dropped a bombshell on March 23 when he said artificial general intelligence (AGI) has already been achieved in a Lex Friedman podcast appearance.
Furthermore, the executive explained he believes that the technology could now potentially run fully-fledged companies or create apps that billions of customers might use. Huang’s comments were, apparently, made in reference to the broader industry and not the semiconductor giant itself, and made particular note of OpenClaw.
AGI is a loosely defined concept that describes artificial intelligence (AI) that has reached or surpassed human intelligence. Though an imperfect shorthand, one can think of artificial general intelligence in terms of Data from Star Trek, Cylons from Battlestar Galactica, or Durandal from the Marathon video game series by Bungie.
This particular breakthrough is simultaneously a core part of the argument behind the hundreds of billions committed and trillions planned for investments in AI, as it would all but ensure a complete transformation of the global economy and human society.
Nvidia stock reacts to AGI claims
Elsewhere, Nvidia stock hardly moved despite the implications of the comment. On Monday, March 23, NVDA shares rallied 1.59% from $172.93 to $175.68, though the move arguably has more to do with the wider market rebound.
Similarly, the extended session leading to March 24 had, by press time, only a limited impact, considering Nvidia stock is up just 0.034% and changing hands at $175.74.
Nvidia stock price one-day chart with March 24 pre-market. Source: GoogleSuch a lack of impact can be attributed to various factors, including Jensen Huang’s own comments.
Why Nvidia stock isn’t soaring despite Huang’s AGI claims
Specifically, after making the bold claim, the CEO of the blue-chip chipmaker concluded that ‘AGI” has ‘0%’ chance of being able to run a company such as his – a comment that, in a nutshell, completely invalidates the previous comment.
Additionally, the entire discussion appears incompatible with Jensen Huang’s comments from earlier in March, in which the Nvidia executive opined that the semiconductor giant will have more employees in the future, not fewer.
It is worth remembering that a key marketing strategy for the AI industry is that the technology will eventually be able to replace human workers, thus, at worst, keeping revenue level while reducing expenditure.
Still, it is equally worth noting that artificial intelligence also has the potential to improve the quality of life of humans by ensuring they work fewer hours for the same or better pay due to technologically enhanced productivity. Still, such an outcome is inconsistent with the trend observable since the final decades of the previous century.
Chart showing the relationship between productivity and wages between 1948 and 2025. Source: Economic Policy InstituteIs the AI industry going to crash in 2026?
Lastly, there are other factors limiting the potential Nvidia rally, even if CEO Huang was not overstating the success of AI research.
For example, the performance of big tech stocks in 2026 showcases that investors are increasingly uncertain about the sector’s road to profitability and whether the sky-high valuation of various companies is justified.
Surveys hinting that AI adoption, on average, has no discernible positive impact on productivity and OpenAI’s own alleged internal reports estimating a $14 billion loss in 2026 serve to exacerbate the prevailing fears. Similarly, the ongoing private credit crisis is adding to the systemic risks.
Even more recently, growing resource supply chain disruptions arising from the Iran war are likely to put physical constraints on the semiconductor industry and, by extension, the AI sector.
So far, helium has been at the center of attention as a major source of the gas in the Persian Gulf has been cut off, but the energy shortage – a shortage that is likely to get worse – also plays a role.
Featured image via Shutterstock
Source: https://finbold.com/nvidia-ceo-claims-agi-has-been-achieved-is-nvda-stock-about-to-soar/
