Nvidia's Chip Demand Surge Amid AI Boom

Nvidia CEO Jensen Huang announced strong demand for its Blackwell chips, though there's an embargo on sales to China due to U.S. regulations. With partners like TSMC and Samsung, and competitors planning investments, the semiconductor sector anticipates a robust 'super cycle' driven by AI advancements.

Nvidia CEO Jensen Huang stated on Saturday that the semiconductor company's business is thriving due to significant demand for its advanced Blackwell chips. "Nvidia builds the GPU, but we also create the CPU, networking components, and switches, culminating in various chips integral to Blackwell," Huang explained at an event hosted by Nvidia's long-standing partner Taiwan Semiconductor Manufacturing Co (TSMC) in Hsinchu.

TSMC CEO C.C. Wei mentioned that Huang requested wafers, although the precise number remains confidential. Huang clarified there are "no active discussions" on selling Blackwell chips, Nvidia's leading AI product, to China, as the U.S. government has restricted such sales over concerns they might bolster China's military or AI industry.

In the midst of this, South Korea's SK Hynix disclosed it sold out future chip production and plans increased investments, anticipating an ongoing chip 'super cycle' propelled by AI growth. Samsung Electronics also reported engaging in "close discussion" to provide Nvidia with its upcoming high-bandwidth memory chips, HBM4.

(With inputs from agencies.)