Nvidia CEO: The strong demand for Blackwell is causing supply shortages and putting strain on customer relationships.

He told the audience at the Goldman Sachs Technology Conference in San Francisco, 'The demand is too high. Everyone wants to be the first to get it. Everyone wants to place the largest orders. Our customers are quite excited. It's understandable that things are tense. We are doing our best.'

Huang Renxun told the audience that there is strong demand for the latest generation of Blackwell chips. Nvidia has outsourced the physical production of the hardware and suppliers are working hard to meet the deadlines.

Data center operators use Nvidia's chips to develop and run artificial intelligence models. The fervent demand for such services has driven Nvidia's sales and stock prices soaring. After rising by 239% in 2023, the stock has more than doubled this year.

On Wednesday, Nvidia rose 8.1% to $116.91 in the New York market, marking the largest single-day increase in six weeks.

The company relies on a small number of customers, with most of its revenue coming from datacenter operators Microsoft and Meta.

Someone asked Huang Renxun whether the massive investment in artificial intelligence by customers can generate returns. In the technology industry's AI frenzy, this has always been a concern.

However, he said that companies have no other choice but to embrace 'accelerated computing'.

Huang Renxun said that Nvidia's technology can accelerate traditional workloads and handle artificial intelligence tasks that cannot be addressed by old technologies.

Huang Renxun said that Nvidia heavily relies on Taiwan Semiconductor to produce its most important chips, as Taiwan Semiconductor is, in many ways, the best company in this field.

However, the tense geopolitical situation has raised the risk in Taiwan, and some worry that mainland China may attempt an attack on Taiwan, which could sever Nvidia's connection with this key supplier.

Huang Renxun said that most of Nvidia's technology is developed by himself, so Nvidia should be able to transfer orders to other suppliers. However, he said that such adjustments may lead to a decline in chip quality.

He said that Taiwan Semiconductor's agility and responsiveness to demand are incredible, and they are chosen as suppliers because they are great, but if necessary, of course, they can switch to other people.