Nvidia (NVDA) CEO Hwang In-hoon said that the competition for limited supply has left some customers frustrated and heightened tension. Nvidia products have become the hottest products in the tech world. “There is so much demand for it, everyone wants to be number one, and everyone wants the most,” he told the audience at a Goldman Sachs Group tech conference in San Francisco. “We probably have more emotional customers right now. Well deserved. This is tense. We're doing the best we can.”

He told the audience that the company's latest generation of chips, called Blackwell, is in strong demand. The Santa Clara, California-based company is outsourcing physical hardware production, and Nvidia's suppliers are catching up, he said.

Data center operators use Nvidia's chips to develop and run artificial intelligence models. The fervent demand for such services drove sales and stock prices to soar. The company's stock price has more than doubled this year after rising 239% in 2023. On Wednesday, the stock rose 8.1% to $116.91 in the New York market, the biggest one-day gain in six weeks. But most of the company's revenue depends on a few customers, such as data center operators such as Microsoft (MSFT) and Meta Platforms Inc. (META).

Wong In-hoon was asked if large-scale AI spending provided customers with a return on investment. Amid the artificial intelligence boom in the tech industry, this has always been a matter of concern. But he said companies had no choice but to embrace “accelerated computing.” Nvidia's technology accelerates traditional workloads — data processing, and artificial intelligence tasks that older technology can't handle, he said.

Huang Renxun said that Nvidia relies heavily on TSMC to produce its most important chips because the company is far ahead in this field. But geopolitical tensions have also increased risk. He said he developed most of the company's technology himself, which should allow Nvidia to shift orders to other suppliers. However, he said, such changes may cause his chip quality to decline. “TSMC's agility and responsiveness to our needs is incredible,” he said. So we use them because they're great, but if necessary, of course, we can always suggest others.”

Hwang In-hoon's speech was exactly what the market wanted to hear. Nvidia's strong overnight trend also successfully led to a V-shaped reversal in US stocks.

The S&P 500 index rose 1.1%, and the Nasdaq 100 rose 2.2%. Both indicators fell by more than 1.5% in the intraday period. Fawad Razaqzada of City Index and Forex.com said, “The stock market initially fell after the CPI was announced, then rebounded, as low buyers re-entered the market. “Historically, however, September has been challenging for the stock market, and as we move deeper into the month, things may prove to be the case once again.”

Skyler Weinand of Regan Capital (Regan Capital) believes that as uncertainty recedes, we should expect “smoother sailing” after the Federal Reserve cuts interest rates for the first time and the general election.