Nvidia Corporation's (NVDA) stock and the broader market received a boost on Monday after CEO Jensen Huang made bullish comments about soaring demand for the company's AI chips.
Speaking at the Goldman Sachs Communacopia & Technology Conference, Huang said: "The demand on [chips] is so great, and everyone wants to be first and everyone wants to be most. We probably have more emotional customers today. Deservedly so. It's tense. We're trying to do the best we can."
Huang's remarks highlighting intense customer demand for Nvidia's AI products caused the company's shares to surge as much as 5.6% on the day, rising from a session low of $107 to a high of $113. His comments also helped lift the Nasdaq 100 index, which erased earlier declines to gain 0.1%.
The CEO's statement reinvigorated investor optimism around Nvidia's growth prospects in the booming artificial intelligence sector. While Nvidia's stock had pulled back in recent weeks amid concerns over economic risks and elevated valuations, Huang's comments underscored the company's powerful market position and the seemingly insatiable demand for its AI offerings.
However, Nvidia is also grappling with challenges such as increasing competition, regulatory scrutiny, and potential geopolitical risks related to its reliance on Taiwan-based chipmaker TSMC for production. Huang acknowledged these risks, noting that a conflict between China and Taiwan could disrupt Nvidia's access to a key supplier.