Jensen Huang Reveals That Demand For Nvidia GPUs Is 'Just So Strong' That Supply Takes A Hit

Nvidia NVDA CEO Jensen Huang discussed the company’s supply challenges due to the rising demand for its chips.

What Happened: During an exclusive interview, Huang emphasized that the demand for Nvidia’s graphics processing units (GPUs) is exceptionally high, but the supply cannot keep up, Yahoo Finance reported on Wednesday. He highlighted that customers are eager to deploy data centers using Nvidia’s GPUs to generate and save money immediately.

“People want to deploy these data centers right now,” Huang said.

“They want to put our [graphics processing units] to work right now and start making money and start saving money. And so that demand is just so strong.”

Nvidia is currently transitioning from its Hopper AI platform to the more advanced Blackwell system. Despite concerns from analysts about a potential demand lull, Huang noted that demand for Hopper has continued to grow even after the announcement of Blackwell.

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Huang further explained that the complexity of Nvidia’s chips is a significant factor in the supply constraints.

“Every component, every part of our data center, is the most complex computer the world’s ever made,” Huang said.

“And so it’s sensible that almost everything is constrained.”

Why It Matters: Nvidia’s recent financial performance highlights the company’s strong market position. Nvidia reported a significant beat-and-raise for the first quarter, announcing a 150% increase in its dividend and a 10-for-1 stock split. It surpassed Wall Street forecasts with adjusted earnings per share of $6.12 on revenue of $26 billion.

Furthermore, Nvidia’s strategic focus on AI is evident from its transition to the Blackwell system. This move positions the company to capitalize on the trillion-parameter era, offering richer solutions to its customers. CEO Jensen Huang emphasized the importance of expanding and enhancing their AI capabilities.

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Photo courtesy: Nvidia Corp on Flickr

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari