Nvidia CEO Assures No Chip Supply Issues Despite AI Expansion

Nvidia Corp. CEO Jensen Huang, who recently delivered a positive quarterly report leading to a surge in his company’s stock, addressed a major worry among investors by assuring that chip production will meet the growing demand.

While Nvidia did not provide long-term forecasts on Wednesday, Huang said that supply will “significantly increase towards the end of this year and next year”. The company relies on suppliers such as Taiwan Semiconductor Manufacturing Co. for components. and Samsung Electronics Co., and the lack of adequate inventory was seen as a challenge to its growth.

In an interview Wednesday, Huang emphasized that the company was doing everything it could to stay on top of growing demand.

“We are focused on increasing our offerings,” Huang said. “We need to do it very urgently, and we are.”

Nvidia is the market leader in AI processors that handle the heavy workloads needed to power tools like OpenAI’s ChatGPT. Its position has made it the world’s most valuable chip maker – with a market value of more than $1 trillion. And the transition to artificial intelligence is just beginning, Huang said.

Accelerated computing, he argues, speeds up the execution of certain tasks by breaking them into smaller parts and working on them in parallel.

“The big megatheme is that the world’s computer data centers are moving to a new model, from general-purpose computing to accelerated computing,” he said. Nvidia’s co-founder believes there is a trillion-dollar data center infrastructure around the world that needs to make this change. The company’s turnover in the last quarter was 13.5 billion dollars, which is more than double compared to the previous year.

Regarding the latest results, “the biggest thing of all was supply,” said Chris Mack, an analyst at Harding Loevner, which owns Nvidia shares.

Without enough components, Nvidia’s orders would have taken longer to fill — providing a main course for rivals such as Advanced Micro Device Inc. and Intel Corp., which are rushing to bring products to market. By increasing supply and responding to demand at an increasing rate, Nvidia is helping to keep customers hooked on its technology and reduce their tendency to look elsewhere, he said.

Huang is looking to take advantage of a sweeping change in information technology — something that doesn’t happen very often, he said. This kind of upheaval brings huge opportunities for companies with the right products to take advantage of them, Huang said.

“Every 15 years you see a new platform change,” he said. “It’s happening right now in real time.”