Nvidia (NVDA) CEO Dispels Fears of Running Out of Chips During AI Boom
Aug 24, 2023 - bloomberg.com
Nvidia Corp. CEO Jensen Huang has assured investors that chip production will keep up with demand, despite concerns over inventory shortages. While the company did not provide long-term projections, Huang stated that supply will "substantially increase for the rest of this year and next year." Nvidia relies on vendors such as Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. for components, and a lack of adequate inventory was previously seen as a potential obstacle to its growth.
This announcement comes after an upbeat quarterly report that led to a surge in the company's shares. The demand for AI chips is high, and Nvidia is focused on increasing supply to meet this demand. Huang's statement has helped to alleviate fears about the company running out of chips during the AI boom.
Key takeaways:
Nvidia CEO Jensen Huang has assured that chip production will keep up with demand.
Despite not giving long-term projections, Huang stated that supply will substantially increase for the rest of this year and next year.
Nvidia relies on vendors such as Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. for components.
A lack of adequate inventory was seen as a challenge to Nvidia's growth run.
