Nvidia CEO Jensen Huang explains to Yahoo Finance that supply is unable to meet demand

Nvidia CEO Jensen Huang is facing a high demand for the company’s AI chips, but the real challenge lies in the limited supply. In an exclusive interview with Yahoo Finance, Huang emphasized the strong demand for Nvidia’s current Hopper AI platform, despite the upcoming transition to the more advanced Blackwell system.

Analysts had raised concerns about a potential lull in demand as customers awaited the release of the Blackwell units later this year. However, Huang revealed that Hopper demand continued to grow throughout the quarter, highlighting the overwhelming demand for Nvidia’s products.

The complexity of these chips poses a challenge for Nvidia in keeping up with the demand, with Huang acknowledging that every component of their data center is the most complex computer ever made.

Despite these challenges, Nvidia reported impressive first-quarter results, surpassing Wall Street forecasts with adjusted earnings per share of $6.12 on revenue of $26 billion. The company also announced a 10-to-1 stock split and a boost in quarterly dividend, leading to a 6% rise in Nvidia’s stock in extended trading.

Huang also discussed Nvidia’s position in AI inference, emphasizing the company’s strength in providing powerful solutions for inference tasks. He highlighted the growing sales to customers beyond major cloud service providers, with companies like Meta, Tesla, and pharmaceutical firms increasingly investing in Nvidia chips.

Overall, Nvidia’s strong performance and optimistic outlook for the future indicate a promising trajectory for the company in the rapidly evolving AI industry.