Nvidia Said To Be Tripling Production of World's Hottest AI Chip for 2024 — But Will Supply Chain Snags Bite?
Portfolio Pulse from Ramakrishnan M
NVIDIA Corporation (NASDAQ:NVDA) plans to triple the production of its H100 AI processor in 2024, despite ongoing supply chain disruptions. The company aims to deliver between 1.5 million and 2 million units, up from the 500,000 units expected this year. The move is a response to the high demand for AI processors, which are already sold out well into 2024. However, the tech sector, including major players like Hon Hai Precision Industry Co Ltd (OTC:HNHPF), Lenovo (OTC:LNVGF), and Taiwan Semiconductor Manufacturing Company (NYSE:TSM), continues to face supply chain challenges.
August 23, 2023 | 7:08 am
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POSITIVE IMPACT
NVIDIA's decision to triple the production of its H100 AI processor could boost its revenues and stock price.
The high demand for NVIDIA's AI processors and the company's plan to triple production could lead to increased revenues and a potential rise in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Taiwan Semiconductor Manufacturing Company could benefit from the projected growth in demand for AI server chips.
The demand for AI server chips is projected to grow by nearly 50% annually over the next five years, which could benefit Taiwan Semiconductor Manufacturing Company.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Hon Hai Precision Industry Co Ltd, also known as Foxconn, could be impacted by the ongoing supply chain disruptions in the tech sector.
As a major player in the tech sector, Foxconn could face challenges due to the ongoing supply chain disruptions, potentially affecting its stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Lenovo could face revenue drops due to a slowdown in demand for general-purpose servers.
With cloud service providers increasingly investing in AI infrastructure, demand for general-purpose servers is slowing down, which could lead to revenue drops for Lenovo.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50