tech
Nvidia's Huang says no chip bust "for a while"
The CEO contends that the current boom has room to run even if the chip industry has a history of boom and bust.
TL;DR
- Nvidia CEO Jensen Huang believes the current chip industry boom is different and has room to run.
- The current boom is not demand-driven by consumers but is industrially driven by changing fundamental computer technology.
- A new AI infrastructure layer is needed globally, on top of existing infrastructure like energy and the internet.
- This AI infrastructure layer requires chips, suggesting the semiconductor industry needs to be 5-10 times larger than it is today.
- The industry is experiencing shortages because it's not cyclical consumer demand but fundamental infrastructure needs.
- Intel reported strong Q2 results with 25% revenue growth, driven by unprecedented demand for compute due to AI.