Nividia’s Chips – AI’s Backbone

Nvidia President Jensen Huang holding the Grace hopper superchip CPU used for generative AI. PHOTO: WALID BERRAZEG/ZUMA PRESS The only thing holding back Nvidia’s astonishing growth is its supply chain. The chip maker’s remarkable results in its past quarter show the company has effectively doubled in the past year, the WSJ’s Dan Gallagher writes in a Heard on the Street column, almost entirely because of demand for its microprocessors used in building generative AI technology. The company says its “demand visibility” extends into next year and that it expects to increase the availability of its chips over the next several quarters even as the broader semiconductor industry faces supply constraints. Nvidia says it has secured higher supply from its outsourced manufacturing providers for the rest of this year, with supplies expected to increase each quarter through the next year. Competitors are looking to challenge Nvidia’s dominance, and companies including Amazon have their own in-house chip efforts that aim to lessen their reliance on outside suppliers.