- Huang says the supply chain is poised for “very robust growth” despite constraints
- SK Hynix also plans to increase capacity as the sector shows no signs of slowing down
- Nvidia shares follow the news – the most valuable company aims for more growth next quarter
Nvidia CEO Jensen Huang has revealed that the company now has sufficient manufacturing capacity and supply chain support to sustain strong growth across its CPU and GPU businesses, despite continued pressure from the AI boom (via Pakinomist).
Speaking at Computex in Taipei, Huang admitted that while supply chain constraints have not completely disappeared, the company has managed to ensure adequate supply chain support.
Investors are also clearly happy with this news, as share prices rose around 1.2% following the announcement, with Nvidia now worth an estimated $5.434 trillion, maintaining its position as the world’s most valuable company.
Nvidia delights investors with positive news from its supply chain
“We have supplies for very, very robust growth, but we still have limited supply,” Huang declared.
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 remain via (via Pakinomist). However, the South Korean giant noted that memory shortages could continue well into the next decade, indicating continued strain.
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 exactly gone after as much recently, focusing instead on the more lucrative data center market.
In its most recent quarter, Nvidia posted a 20% quarter-over-quarter and 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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