Nvidia Demand Outpaces Supply 12-to-1, Analyst Says
Nvidia's financial performance continues to improve despite its sluggish year-to-date returns. The chipmaker's revenue surged by 85% year over year in its fiscal 2027 first quarter, while net income more than tripled during that period.
Tech analyst Dan Ives suggests a significant mismatch between Nvidia's current stock price and its financial performance. 'Demand to supply today is 12 to 1 for their chips,' he said on CNBC, adding that physical AI hasn't even started to play out yet.
The shortage of Nvidia's chips is driven by tech giants' commitment to high capital expenditures for artificial intelligence (AI). Alphabet, Amazon, and Microsoft have all raised their projected capital expenditure guidance in recent months, with a significant portion going towards AI-related spending.