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Nvidia feels optimistic about its supply chain
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- Huang says the supply chain is primed for "very robust growth" despite constraints
- SK Hynix is also planning to increase capacity as sector shows no signs of slowing down
- Nvidia shares are up following the news – the most valuable company is targeting more growth next quarter
Nvidia CEO Jensen Huang has revealed the company now has enough manufacturing capacity and supply chain support to sustain strong growth across its CPU and GPU businesses, despite ongoing pressure from the AI boom (via Reuters).
Speaking at Computex in Taipei, Huang admitted that while supply chain constraints haven't entirely disappeared, the company has managed to secure sufficient supply chain support.
Investors are also clearly happy with this news, as share prices rose around 1.2% following the announcement, with Nvidia now worth an estimated $5.434 trillion, retaining its position as the world's most valuable company.
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Nvidia pleases investors with positive news from its supply chain
"We have supply for very, very robust growth, but we're still supply constrained," Huang declared.
The news comes as the company ramps up production for its next-generation Vera Rubin systems – Huang indicated that the second half of 2026 is likely to be "very busy" for Nvidia's manufacturing partners.
Separately at the same event in Taipei, SK Hynix said it plans to double wafer capacity over the next five years as expectations for AI demand remain via (via Reuters). However, the South Korean giant did note that memory shortages could carry on well into the next decade, indicating continued strain.
These comments came immediately after Nvidia launched its new RTX Spark AI PC chip for the latest generation of AI PCs – a sector of the market that Nvidia hasn't exactly been going after so much recently, with it instead focusing on the more lucrative data center market.
Are you a pro? Subscribe to our newsletterContact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsorsBy submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.In its most recent quarter, Nvidia posted a 20% quarter-over-quarter and 85% year-over-year rise in three-month revenue, totaling $81.6 billion. This growth is also expected to continue, with Nvidia targeting $91 billion in revenue for its next quarter.
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TOPICS Nvidia AI CATEGORIES AI Platforms & Assistants
Craig HaleWith several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!
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