Nvidia’s stock experienced a significant surge on Thursday, jumping as much as 5% following CEO Jensen Huang’s bullish comments about unprecedented demand for the company’s next-generation Blackwell GPU chips. The stock settled at approximately 3% gains, trading at $122.47 by mid-morning, continuing an extraordinary year that has seen shares rise 149% year-to-date, making Nvidia the second-best-performing S&P 500 stock in 2024.
In a revealing interview with CNBC on Wednesday evening, Huang characterized the demand for Blackwell chips as “insane,” addressing concerns about production delays that had emerged earlier in the year. The CEO firmly stated that “Blackwell is in full production, Blackwell is as planned,” putting to rest worries about small redesigns that had caused slight delays in the chip’s rollout to customers. Huang noted that the challenge isn’t production capacity but rather the overwhelming demand: “Everybody wants to have the most and everybody wants to be first.”
The CEO’s comments align with statements from Nvidia’s largest customers, including Oracle cofounder Larry Ellison, who revealed earlier this month that he and Elon Musk “begged” Huang for more GPU chips during a dinner meeting. Ellison’s memorable quote—“Please take our money. We need you to take more of our money”—underscores the desperate scramble among tech giants to secure AI computing infrastructure.
Huang also reaffirmed Nvidia’s ambitious roadmap of delivering faster and more efficient GPU chips annually. He explained that the performance leap from Hopper to Blackwell represents a two to three times improvement, which translates to either doubling customer revenues or effectively decreasing costs every two to three years. This rapid innovation cycle positions Nvidia as the cornerstone of the AI infrastructure buildout.
Beyond hardware, Huang emphasized Nvidia’s comprehensive approach to AI computing, noting the company’s involvement across the entire technology stack—from GPU chips to software to networking components. He described this as “a brand new way of doing computing” and positioned Nvidia as dedicated to reinventing every layer of the technology stack to ensure companies worldwide can benefit from AI technology. This holistic strategy differentiates Nvidia from competitors and strengthens its moat in the rapidly expanding AI market.
Key Quotes
Demand for Blackwell is insane.
CEO Jensen Huang made this statement during a CNBC interview, characterizing the unprecedented level of customer interest in Nvidia’s next-generation AI chips. This comment directly drove the stock’s 5% surge and signals continued strength in AI infrastructure spending.
Blackwell is in full production, Blackwell is as planned. Everybody wants to have the most and everybody wants to be first.
Huang addressed concerns about production delays and redesigns, reassuring investors and customers that manufacturing is on track. The statement reveals that demand, not supply, is the primary constraint facing the company.
Please take our money. We need you to take more of our money.
Oracle cofounder Larry Ellison recounted what he and Elon Musk told Huang during a dinner meeting, illustrating the desperate competition among tech giants to secure GPU allocation. This anecdote demonstrates how AI chips have become the most sought-after commodity in technology.
This is a brand new way of doing computing, and we’re dedicated to build the entire stack and reinvent every layer of the technology stack so that every company in the world can benefit from this revolutionary new technology we call AI.
Huang articulated Nvidia’s comprehensive strategy beyond just chip manufacturing, positioning the company as an end-to-end AI infrastructure provider. This vision explains Nvidia’s premium valuation and competitive moat in the AI era.
Our Take
Nvidia’s position in the AI revolution has evolved from chip supplier to essential infrastructure provider, and Huang’s comments reveal a company confidently managing scarcity to maximize long-term value. The “insane” demand characterization isn’t hyperbole—when billionaires are literally begging for product allocation, traditional supply-demand dynamics have broken down. What’s particularly noteworthy is Nvidia’s commitment to 2-3x annual performance improvements, which creates a perpetual upgrade cycle that locks customers into continuous spending. This isn’t just about selling chips; it’s about controlling the foundational layer of AI computing. The 149% year-to-date stock gain reflects market recognition that Nvidia has achieved something rare: a genuine monopoly in the most important technology transition of our generation. However, this dominance also makes Nvidia vulnerable to geopolitical risks, competition from custom chips, and potential customer backlash over allocation practices. The next 12-18 months will reveal whether this demand sustains or represents peak AI infrastructure spending.
Why This Matters
This development is significant for the AI industry as it confirms that the AI infrastructure boom shows no signs of slowing down. Nvidia’s dominant position in AI computing hardware makes it a bellwether for the entire sector, and Huang’s comments suggest demand is outstripping even the most optimistic projections. The “insane” demand for Blackwell chips indicates that major tech companies are racing to build AI capabilities, viewing access to cutting-edge GPUs as a competitive necessity rather than an option.
The willingness of billionaire executives like Larry Ellison and Elon Musk to “beg” for chips reveals the strategic importance of AI infrastructure in the current technology landscape. This supply constraint could reshape competitive dynamics, favoring companies with early access to Nvidia’s latest hardware. Furthermore, Nvidia’s commitment to annual performance improvements of 2-3x suggests the AI capabilities gap between leaders and laggards will continue widening. For businesses, this signals that AI investment is becoming table stakes, while for workers, it underscores the accelerating pace of AI-driven transformation across industries. The stock market’s enthusiastic response reflects investor confidence that AI spending will remain robust for years to come.
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