NVIDIA Chief Executive Officer Jensen Huang said that investors’ concerns about a possible shortage of chips due to exceeding by the level of demand for these products the pace of production are not justified, and noted that there is no reason for any anxiety about this.
The tech giant refrained from predicting the processes in the industry in the long term. At the same time, Jensen Huang said that the volume of chip shipments will increase significantly before this year and in 2024. In this case, the company relies on component suppliers, including Taiwan Semiconductor Manufacturing and Samsung Electronics. The lack of sufficient stocks of chips was considered by experts and investors as an obstacle to the growth of the technology giant’s business.
Jensen Huang on Wednesday, August 23, during a conversation with media representatives, said that the company is taking all possible measures to ensure the volume of production activities that guarantee the satisfaction of growing demand. He also informed about the firm’s focus on increasing supplies, noting that this is a task that must and will be completed urgently.
NVIDIA is currently the market leader in artificial intelligence processors that can handle large workloads. This product is necessary to work with tools such as ChatGPT from OpenAI. Jensen Huang stated that the company’s position made it the most valuable chip manufacturer in the world. Separately, he stressed that the transition to AI is a process at the initial stage of implementation. This clarification can be regarded as an unambiguous hint that the company’s position will improve, the business will grow and the demand for products will only increase against the background of objective technological realities.
According to Jensen Huang, accelerated computing, which increases the speed of performing certain tasks by segmenting them according to the principle of dividing a single whole into smaller parts and working on them in parallel, is becoming increasingly popular. He noted that at present there is a trend of transition of the world’s computer data centers to a new model, from general-purpose computing to accelerated.
The head of NVIDIA believes that the infrastructure of data centers around the world worth $1 trillion should contribute to the introduction of new trends in the practical plane. He also noted that such landmark periods of historical scale, when the transition from one technological model to another is carried out, occur rarely and present huge opportunities to companies whose products are necessary for the implementation of the corresponding process. According to him, every 15 years there is a change of platform, and now it is the turn of the next transition.
NVIDIA is the first semiconductor company in the world, whose market value has reached the $1 trillion mark. The tech giant ended the second quarter of 2023 with excellent financial performance. Investors expected that the period from April to June would confirm the long-term nature of the high demand for chips. The results exceeded expectations.