Yesterday, Nvidia CEO and founder Jensen Huang took part in the Goldman Sachs technology conference, and his traditionally emotional statements had a favorable effect on the company’s stock price, which rose by 8.15% at the end of trading. Among other things, the issue of Nvidia’s dependence on TSMC’s Taiwanese enterprises was discussed.
Image source: NVIDIA
It’s no secret that the latter company’s efforts to develop operations outside of Taiwan are driven in part by geopolitical tensions over the island, which Chinese authorities consider part of its territory, and nervousness among foreign customers has forced TSMC to build plants in the United States, Japan and Germany. According to Jensen Huang, his company keeps enough intellectual property to itself to switch from one chip manufacturer to another if necessary. At the same time, the yield level, cost and performance level of chips may suffer, but it will still be able to provide supplies if necessary.
Regarding chips with Blackwell architecture, the head of Nvidia said that they are produced in mass quantities, the company will begin delivering them in the fourth quarter and then begin scaling them, continuing to do so next year. The demand for chips is high, each customer wants to receive them first and in large quantities, so some customers allow themselves some emotional manifestations of their dissatisfaction. Nvidia is doing everything it can to meet demand for its chips.
The Nvidia founder also added that participants in the information technology market have little choice but to switch to the use of generative artificial intelligence. At Nvidia, for example, programmers no longer write code manually, but use systems that help generate it, and this is becoming the new norm in the profession.
In the server segment, the equivalent of $1 trillion in data centers will require a transition to faster computing, as the head of Nvidia notes, and in general, artificial intelligence will begin to replace some human skills. For example, robots will begin to replace people on assembly lines, and in the field of technical support services for customers, live specialists will be replaced by chatbots. Data centers will become denser in terms of specific performance per unit of footprint. The company is ready to offer the market a new generation of computing accelerators every year. Nvidia shares rose 8.15% after such statements by the company’s CEO, showing the largest single-session gain in six weeks.