Jensen Huang Says AI Will Kill Tasks, Not Jobs. Here's What That Means for Stocks Riding the AI Trade.

If that happens, consumers can continue to earn and spend money, which will keep the economy running smoothly.

Meanwhile, demand continues to heat up for critical AI infrastructure.

Nvidia (NASDAQ: NVDA) CEO Jensen Huang recently told Y Combinator's Startup School attendees that artificial intelligence (AI) isn't going to eliminate jobs. He said that tasks are more at risk, and this shift clears a major hurdle for the AI trade .

Bubble fears will weaken if AI doesn't replace jobs and automates various tasks instead. Here's how investors should interpret Huang's prediction.

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One of the concerns with artificial intelligence is that the technology will become so advanced that it will replace most workers. For instance, if Alphabet 's Waymo self-driving vehicles perform as well as humans, taxi and Uber drivers won't be able to find work.

Elon Musk is more bearish on that prospect and believes that universal high income via government checks will be required in the future. However, he also believes that everyone will end up with a penthouse because of AI, which is a bit of a stretch given resource distribution and other factors.

If AI creates job losses, consumer spending would drop sharply, and few people would be able to buy products and services from companies that made significant AI investments.