NVIDIA sees no signs of shortage of chips

Earlier this week, NVIDIA dazzled the market as the company's fiscal Q2 2024 earnings came in at $13.51 billion, a massive increase of 88 percent versus the same period a year ago. It's unusual to see a company the size of NVIDIA grow so fast but the current AI boom is driving a massive spike in demand for the company's GPUs.

DigiTimes reports there NVIDIA CEO Jen-Hsun Huang says fears of production being unable to keep up with demand are ungrounded:

Nvidia Corp. Chief Executive Officer Jensen Huang, fresh off an upbeat quarterly report that sent his company's shares to a record high, dispelled one of investors' biggest concerns: that chip production won't keep up with demand.

The chart below illustrates how fast demand for NVIDIA's data center products has grown over the past couple of years. Datacenter GPU sales have nearly tripled over the past year. It's also interesting to see how gaming is now a relatively small, but not unimportant, part of NVIDIA's total revenue. It used to be the other way around.