Nvidia CEO Huang Eliminates Fears Of Semiconductor Chip Shortage Despite AI Boom
by upasana sarbajna Business 25 August 2023
While Nvidia did not give any long-term affirmations on Wednesday, Huang confirmed that supply will “substantially increase for the rest of this year and next year.”
The Chief Executive Officer of Nvidia Corp. Jensen Huang, fresh off an optimistic quarterly report that had sent the shares of his company to a record high, eliminated one of the biggest concerns that the investors have: the production of the chips will not be able to keep up with the high demand.
While no long-term projections were given by Nvidia on Wednesday, Huang assured that the supply will “substantially increase for the rest of this year and next year.” The company has its trust in vendors like Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. for components. A lack of proper inventories was an estimated challenge for the growth of the company.
CEO Jensen Huang has firmly confirmed that the insatiable demand that they are facing for the chips will not be an issue as the key focus of the company is to increase supply.
In an interview on Wednesday, Huang highlighted that the company has been doing everything that it can to stay at the peak of the surging demand.
“We’re focused on increasing our supply,” Huang added. “We have to do that with great urgency, and we are.”
Nvidia has a roaring lead in the market for AI processors, which takes care of the increasing workloads that are needed to power AI tools such as OpenAI’s ChatGPT.
The position itself has made it the most valuable chipmaker in the world, whose market capitalization goes beyond $1 trillion. The shift to artificial intelligence is just the start, said Huang.
“Accelerated computing, which speeds through specific tasks by breaking them up into smaller parts and working on them in parallel, is taking over,” he further argues.
“The big mega theme is that the world’s computer data centers are transitioning to a new model, from general purpose computing to accelerated computing,” he added.