Nvidia CEO Jensen Huang recently remarked that the demand for artificial intelligence (AI) chips is on the rise. According to Huang, AI is the “rebirth of the industry,” with Taiwan playing a significant role in this development alongside partner Taiwan Semiconductor Manufacturing (TSMC). Huang stated, “Last year was the beginning. This year is going to be a huge year.”
As a result of this flourishing demand, Nvidia’s shares have seen a 0.6% increase to $617 in mid-day trading on Thursday. Over the past year, the stock has witnessed an impressive growth of 219%.
Facing supply constraints, Nvidia and its suppliers are working tirelessly to ramp up their chip production. Huang emphasized that scaling the capacity of AI is the greatest challenge in the field. He stated, “The demand is very strong. We’re working very hard – TSMC, all of our supply chain partners here – to keep up with the demand.”
Nvidia currently dominates the market for AI chips, attracting both start-ups and leading corporations. The company’s robust programming platform, CUDA, offers an array of AI-related tools that facilitate the development of AI projects. Moreover, Nvidia’s graphics processing units are particularly well-suited for the parallel computations necessary to train AI models and cater to customers.
With the continued surge in demand for AI chips, Nvidia is at the forefront of innovation in this domain.