(Source-cio.economictimes.indiatimes.com)
Nvidia Corp. is experiencing an overwhelming demand for its cutting-edge technology, which is creating frustration among its customers. Jensen Huang, CEO of the company, acknowledged that tensions are running high due to the scramble for a limited supply of Nvidia’s latest generation of Nvidia Chip Demand, Blackwell. Speaking at a Goldman Sachs technology conference in San Francisco, Huang highlighted the emotional climate among customers. “The demand is so great, and everyone wants to be first and the best,” he said. “We probably have more emotional customers today. It’s tense.”
Skyrocketing Demand for AI-Driven Nvidia Chip Demand
Nvidia has seen a massive surge in demand for its chips, which are vital for data center operators developing artificial intelligence models. The booming interest in AI-related technology has led to a sharp rise in the company’s sales and stock price. Nvidia’s shares have more than doubled this year, with an 8.1% increase to $116.91 on Wednesday alone. However, much of its revenue comes from a small pool of major customers, including tech giants like Microsoft and Meta Platforms.
Despite concerns about the return on investment for companies pouring money into AI technology, Huang stressed that accelerated computing is inevitable. Nvidia’s technology allows businesses to speed up conventional data processing tasks while also tackling AI workloads that older technology can’t handle. “It’s not just AI, it’s everything — accelerated computing is here to stay,” Huang emphasized.
Dependency on TSMC Amid Geopolitical Tensions
A significant portion of Nvidia’s success relies on Taiwan Semiconductor Manufacturing Co. (TSMC), which produces its most advanced chips. Huang praised TSMC’s ability to meet Nvidia’s high standards, saying, “Their agility and capability to respond to our needs is incredible.” However, geopolitical concerns, particularly around China’s claim over Taiwan, pose risks to this key partnership. If tensions escalate, Nvidia could face supply chain disruptions.
While Nvidia has the capability to shift production to other suppliers, Huang admitted this could result in a decline in chip quality. Nonetheless, he expressed confidence that Nvidia could adapt if necessary, though it would not be ideal.
Also, Read – The Enterprise weird
