Nvidia CEO Jensen Huang says customers keep ordering more AI chips than Nvidia can supply. Huang told the BG2 podcast in an interview released Thursday that new orders arrive "almost weekly and daily". Huang said Nvidia's order books keep growing as Nvidia increases supply.
Major cloud providers, newer AI cloud operators and equipment manufacturers have already placed substantial orders. Huang said customers forecast demand at least a year ahead. Huang said the largest customers plan two years ahead. However, Nvidia is allocating customers considerably less capacity than customers want. Huang said electricity shortages, unfinished data centers and manufacturing components also limit how quickly Nvidia can expand supply.
A steep technology stock selloff has raised doubts about how buyers will finance the industry's enormous expansion. Reuters reported that U.S. semiconductor stocks lost roughly $1.64 trillion in market value over six sessions as investors grew concerned about debt-funded AI infrastructure spending. Investors are questioning whether AI companies can generate enough revenue to support enormous borrowing. Nvidia shares fell 3.2% Wednesday. Nvidia shares traded lower again Thursday.
CoreWeave has roughly $50 billion in debt. Yields on some CoreWeave bonds have approached 16%, signaling growing investor concern about CoreWeave's finances. However, CoreWeave reported a $104 billion revenue backlog at the end of June. Nvidia owns approximately 10% of CoreWeave. Nvidia has agreed to purchase otherwise unsold CoreWeave computing capacity through 2032. Huang separately told Bloomberg Thursday that CoreWeave's strength is improving every day. Huang said he saw no need for additional financial support.
Huang pushed back in the BG2 interview on concerns that OpenAI and Anthropic must generate enough revenue to justify trillions in AI infrastructure spending. Huang estimated that frontier AI laboratories account for roughly 25% to 30% of Nvidia's computing activity. Other demand comes from conventional computing, startups and companies developing specialized applications. Huang said the laboratories do not need revenues anywhere near a trillion dollars to be successful.
Taiwan Semiconductor Manufacturing Co., Nvidia's primary chipmaker, reported a 68.7% increase in third-quarter profit Thursday, supporting Huang's demand argument. Traders on Polymarket assigned roughly 6% odds to a qualifying AI-industry downturn by December 31. The contract requires three severe events within 90 days, rather than merely a stock correction.
Nvidia CEO Jensen Huang Reveals AI Chip Demand Surpasses Supply
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Summary
Nvidia CEO Jensen Huang told the BG2 podcast that AI chip demand is outpacing supply, with new orders arriving almost daily. Major cloud providers and AI operators are pushing for more, but Nvidia can’t keep up due to power and infrastructure limits. Inflation data and AI + crypto news continue to shape the tech and financial markets as companies race to secure hardware.
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