- Huang says supply chain poised for ‘very strong growth’ despite constraints
- SK Hynix also plans to increase capacity as the sector shows no signs of slowing down.
- Nvidia shares rose on news: most valuable company eyes higher growth next quarter
Nvidia CEO Jensen Huang revealed that the company now has enough manufacturing capacity and supply chain support to sustain strong growth in its CPU and GPU businesses, despite continued pressure from the AI boom (via PakGazette).
Speaking at Computex in Taipei, Huang admitted that while supply chain constraints have not completely disappeared, the company has managed to secure sufficient supply chain support.
Investors are also clearly happy with this news, as share prices rose around 1.2% following the announcement, and Nvidia is now worth approximately $5.434 trillion, retaining its position as the most valuable company in the world.
Nvidia pleases investors with positive supply chain news
“We have supply for very, very strong growth, but we still have limited supply,” Huang said.
The news comes as the company ramps up production of its next-generation Vera Rubin systems: Huang indicated that the second half of 2026 is likely to be “very busy” for Nvidia’s manufacturing partners.
Separately, at the same event in Taipei, SK Hynix said it plans to double wafer capacity over the next five years as expectations for AI demand hold up (via PakGazette). However, the South Korean giant did note that the memory shortage could continue well into the next decade, indicating continued tension.
These comments came on the heels of Nvidia launching its new RTX Spark AI PC chip for the latest generation of AI PCs, a sector of the market that Nvidia hasn’t been pursuing as much lately, instead focusing on the more lucrative data center market.
In its most recent quarter, Nvidia posted a 20% quarter-over-quarter increase and an 85% year-over-year increase in three-month revenue, totaling $81.6 billion. This growth is also expected to continue, with Nvidia targeting $91 billion in revenue for its next quarter.
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