Jensen Huang stated that the demand for Blackwell chips is "crazy", NVIDIA rose more than 1% after hours
Comments say that Jensen Huang's speech eased concerns about the delay in Blackwell chip production. Three weeks ago, after Jensen Huang exaggeratedly affirmed that the demand for Blackwell was too high in his speech, NVIDIA's stock rebounded by 9% intraday, leading to a V-shaped reversal in the US stock market
NVIDIA's latest generative artificial intelligence (AI) architecture chip has received positive news.
After the U.S. stock market closed on Wednesday, October 2nd, NVIDIA CEO Jensen Huang stated in an interview with CNBC that the Blackwell architecture chip has been "fully put into production" and the demand for Blackwell chips is "insane."
Following Huang's statement, NVIDIA's stock price rose by nearly 1.6% on Wednesday and further increased by about 1.6% in after-hours trading.
In response to Huang's remarks, some traders commented on social media platform X that Huang alleviated concerns about production delays of Blackwell, predicting that NVIDIA's stock price may close above $120 on Thursday. Thursday might be a good day to go long on NVIDIA.
In fact, after reports surfaced a month ago about NVIDIA possibly delaying the shipment of Blackwell chips, the production and demand trends of NVIDIA's latest mass-produced architecture chips have attracted more attention and affected the stock market.
Reports in early September indicated that due to design flaws, the most advanced AI chip in the Blackwell series would be delayed by three months or more, with mass shipments of Blackwell potentially postponed to the first quarter of next year. NVIDIA later responded that the strong demand for Hopper chips and the production schedule for Blackwell chips remained unchanged.
Three weeks ago, Huang's statement regarding the demand for Blackwell directly led to a V-shaped reversal in the U.S. stock market on that day.
On September 11th, at a technology conference organized by Goldman Sachs, Huang exaggeratedly affirmed the massive demand for Blackwell. Huang said at the time that NVIDIA is collaborating with all global data centers, cloud service providers, and computer manufacturers.
"So, this means we have a huge responsibility. Many people rely on us, and expectations for us are high. The demand is very strong, and delivering our components, technology, infrastructure, and software is emotionally very important to many people. Because this directly affects their income, directly affects their competitiveness Therefore, today we may have more emotionally invested customers who are in great need of our products and are very excited."
He then mentioned Blackwell's production and demand, saying,
"NVIDIA 'bears a great responsibility and strives to do its best. We are making every effort to promote the production of Blackwell, which is now in full swing."
"We will start shipping in the fourth quarter and expand production capacity in the fourth quarter, continuing to expand next year. The demand for Blackwell is too high, everyone wants to be the first company to own it, everyone wants to have the most capacity, everyone wants to be ahead."
During Jensen Huang's speech, NVIDIA's stock price, which had fallen slightly in early trading on September 11th, rose steadily, breaking through $117.00 at one point, with an intraday increase of 8.4%, rebounding 9% from the intraday low. In the end, NVIDIA closed up 8% that day, marking its largest daily gain in six weeks, with a market value soaring by $250 billion in a single day, recovering most of the decline since August 30.
Driven by NVIDIA's rebound, on September 11th, the three major U.S. stock indexes collectively turned higher during the trading session. The S&P 500 index, which initially fell 1.6%, turned higher and rose by over 1%, the Dow, which initially fell nearly 744 points or 1.8%, turned higher by 0.3%, and the Nasdaq, which had fallen 1.4% at one point, later rebounded by over 2%, rising by 3.8% from the daily low.
Wall Street CN subsequently mentioned that analysts believe Jensen Huang's speech "answered the big question in investors' minds." His emphasis on the "enormous demand," even with somewhat boastful and exaggerated descriptions, happened to be the key driver behind NVIDIA and the U.S. stock indexes' major turnaround. Huang also informed the audience that generative AI is still in its early stages and will expand into more areas beyond data centers, igniting imagination for future growth