Nvidia CEO Jensen Huang says demand for its chips is ‘insane’

Key recommendations

• Nvidia CEO Jensen Huang said demand for the company’s AI chips is “insane” in an interview with CNBC Wednesday.

• Chipmaker Nvidia is expanding its partnership with IT consulting firm Accenture to help companies use artificial intelligence, the companies announced on Wednesday.

• Nvidia’s stock has more than doubled since the start of the year as the companies race to build their AI infrastructure.

Demand for Nvidia’s ( NVDA ) AI chips is “crazy,” CEO Jensen Huang said in a televised interview Wednesday afternoon.

Huang spoke during an interview on CNBC on news of an expanded partnership with IT consulting firm Accenture (ACN) to help companies use artificial intelligence (AI) technology, the companies announced Wednesday.

Shares of Nvidia, which closed 1.6 percent higher on Wednesday, more than doubled their value since the start of the year as companies raced to buy the company’s technology and build AI infrastructure. Accenture shares rose 1.2 percent on Wednesday and have gained about 1.5 percent in 2024 so far.

As part of the agreement, Accenture will form a new business group with consultants trained to help clients build custom AI solutions and capabilities with Nvidia technology, as well as the Meta (META) Llama collection of open-source AI models.

“This partnership allows us to cover a large part of the world’s demand for AI,” Huang said, adding that “this is the beginning of a new wave called enterprise AI.”

Wedbush analyst Dan Ives compared Nvidia’s moves to build an ecosystem of partners to those of technology patents Microsoft ( MSFT ) and Oracle ( ORCL ), suggesting they could help strengthen Nvidia’s market position.

Read the original article on Investopedia.