Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang said the company has secured sufficient manufacturing capacity to support continued growth across its AI chip portfolio, even as industry-wide supply pressures persist.
Speaking at a press conference on the sidelines of Computex in Taipei on Tuesday, Huang said Nvidia is positioned to handle significant increases in demand for both its graphics processing units (GPUs) and central processing units (CPUs), Reuters reported.
“We have supply for very, very robust growth, but we’re still supply constrained,” Huang said.
Vera CPU Could Become Key Growth Engine
Huang highlighted Nvidia’s upcoming Vera data-center CPU as a potentially important contributor to future growth. The processor will compete against server chips from rivals AMD (NASDAQ:AMD) and Intel (NASDAQ:INTC) and is expected to play a central role in AI computing workloads.
The comments followed Nvidia’s unveiling of its RTX Spark chip for AI-enabled personal computers. Huang said the product forms part of the company’s collaboration with Microsoft aimed at reshaping the PC experience for the AI era.
Investors closely watch Nvidia as a gauge of AI infrastructure spending. While demand for its chips remains strong, Huang’s remarks suggest supply availability remains a challenge even as the company expands production capacity.
What’s Going On With NVDA Stock?
The chip designer’s shares ticked up 1% to 226.61 in pre-market trading on Tuesday, extending gains of over 6% from the previous session.
So far this year, NVDA stock is up 18.8%, while rivals AMD and Intel gained 128.3% and 177.6%, respectively, and Qualcomm (NASDAQ:QCOM) shot up by 32.38%.
According to Benzinga’s Edge Rankings, the stock scores highly on growth, quality and momentum, but its value score suggests it trades at a significant premium relative to traditional valuation metrics. The stock also maintains positive short-, medium-, and long-term price trends.
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