Huang Renxun "Versailles" lamented: Products are too hot to make customers unhappy! NVIDIA Corporation (NVDA.US) saves US stocks again.

CEO Jensen Huang said at a technology conference organized by Goldman Sachs Group, Inc. on Wednesday that some customers are frustrated due to limited product supply, and relationships with these customers have become tense. Huang said, "Demand is very strong, everyone wants to be the first to receive the goods, everyone wants to receive the most products." "We may now have more emotional customers, and that's natural. The situation is a bit tense now, and we are working our hardest." He added that there is strong demand for the latest generation chip, Blackwell GPU, and suppliers are catching up. Furthermore, when asked if the massive investment in artificial intelligence provides a return on investment for customers - a concern during this artificial intelligence boom, Huang said that embracing "accelerated computing" is the only choice for enterprises. He pointed out that NVIDIA Corporation's technology accelerates traditional workload processing and can handle artificial intelligence tasks that old technologies cannot handle. Huang also mentioned that NVIDIA Corporation heavily relies on Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR for chip production, as the latter is leading in the chip manufacturing field. He added that most of the company's technology is self-developed and capable of shifting orders to other suppliers, but this change could lead to a decrease in chip quality. He said, "The sensitivity and ability to respond to our demands of Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR are incredible. We chose them because they are truly outstanding. But if necessary, we can of course use other suppliers." NVIDIA Corporation once again becomes the "savior" of the US stock market Huang's statement about the "huge demand for AI chips" on Wednesday can be said to have saved the US stock market, as major stock indexes completely erased their intraday declines and achieved a V-shaped rebound, with technology and chip stocks performing particularly well. Data shows that on Wednesday, NVIDIA Corporation initially fell slightly below $107 in early trading, but with Huang's speech, the increase continued and rose as much as 8.4% to surpass $117, with a daily high-low swing of up to 9%. NVIDIA Corporation closed up 8.15% on Wednesday at $116.91. Driven by NVIDIA Corporation's rise, the S&P 500 index turned from an early 1.6% decline to a rise of over 1%, the Dow Jones index turned from a 1.8% decline in early trading to a 0.3% rise, and the Nasdaq index turned from a 1.4% decline to a rise of over 2%, with a high-low swing of over 630 points or 3.8%, and the Philadelphia Semiconductor Index from a 1.4% decline to a nearly 5% rise. Analysts point out that this is the first time since October 2022 that the S&P 500 index and the Nasdaq 100 index completely erased intraday declines of at least 1.5%. It can be said that NVIDIA Corporation single-handedly erased the impact of the US August CPI data on the stock market earlier on Wednesday. NVIDIA Corporation's stock price has risen nearly 500% in the past 12 months. However, NVIDIA Corporation fell 14% last week, causing a $400 billion market cap loss. Investors are now starting to worry that the artificial intelligence boom that has been driving the US market higher may soon fade as economic growth slows down, and they are confused about whether the large-scale spending on artificial intelligence by companies will generate substantial returns. Therefore, many analysts say that Huang's speech was seen as an opportunity to calm investor nerves. Although it may sound a bit "Versailles," Huang's emphasis on the "significant demand for AI chips" played a key role in the reversal of NVIDIA Corporation's stock price and the US stock indices. Huang also said that generative artificial intelligence is still in its early stages and will expand into more areas beyond data centers, igniting imagination for future growth. Media reports point out that the recently released financial report of Oracle Corporation (ORCL.US) has made people realize that the demand for NVIDIA Corporation's AI chips is expected to remain strong. In addition, Musk's AI startup company xAI is using a large number of NVIDIA Corporation GPUs to build its Colossus AI training infrastructure. Meta has long planned to purchase NVIDIA Corporation chips worth billions of dollars by the end of this year. NVIDIA Corporation's customers also include Microsoft Corporation (MSFT.US), among others. These large tech customers focused on expansion are enough to make NVIDIA Corporation dominate the AI chip market. What is the outlook for NVIDIA Corporation's stock? Wall Street opinions vary NVIDIA Corporation's Q2 revenue and earnings per share announced at the end of August both significantly exceeded expectations. Q2 revenue increased by 122% year-over-year, with an adjusted (NON-GAAP basis) earnings per share of $0.68, up 152% year-over-year, compared to analyst expectations of $0.64. However, in the second quarter, the degree to which NVIDIA Corporation outperformed performance metrics was the smallest in the past six quarters. As for overall performance expectations, NVIDIA'sThe Corporation is expected to have a revenue of around $32.5 billion in the third quarter of October, which is a potential increase of about 80% from the same period last year, higher than the analysts' average expectation of $31.7 billion. However, the market has set a shocking high expectation for NVIDIA Corporation's Q3 revenue, reaching $37.9 billion, which has raised concerns about its explosive growth slowing down to some extent.After the release of the latest financial report, the stock price of NVIDIA Corporation experienced significant fluctuations, partly due to a series of weak US economic data. In addition, the high price of NVIDIA Corporation also contributed to some investors' lack of confidence in the company, with the price-to-earnings ratio of NVIDIA Corporation slightly higher than 56x after the performance announcement, which was close to 80x in July. However, according to Goldman Sachs Group, Inc.'s renowned analyst Toshiya Hari, NVIDIA Corporation was oversold last week. Toshiya Hari maintained a "buy" rating on NVIDIA Corporation this week. He stated, "Although the recent performance of NVIDIA Corporation has not been great, we still have a positive outlook on this stock. Firstly, the demand for accelerated computing remains very strong. We tend to spend more time on mega-cap enterprises, such as Amazon.com, Inc., Alphabet Inc. Class C, Microsoft Corporation, but you will see that the demand is expanding to enterprises, and even sovereign states." Goldman Sachs Group, Inc. pointed out that with profound technological changes such as artificial intelligence, "making judgments based on short-term costs and returns will be futile." The focus will be on the long term. Goldman Sachs Group, Inc. estimates that by the second half of 2025, generative artificial intelligence will begin to make a substantial contribution to industry growth. In discussing NVIDIA Corporation, Toshiya Hari stated, "Their competitive position remains very solid, and we do believe that in the commercial chip sector, NVIDIA Corporation is the top choice, even compared to custom chips, they have an advantage in innovation speed." However, Citigroup stock strategist Scott Chronert believes that NVIDIA Corporation may be turning into a less exciting, more standard large growth stock. He warned last week when NVIDIA Corporation experienced a significant drop, "By simply looking at the deceleration in future guidance growth rates, it seems that its most profound performance and fundamental impact on the broader market may have already happened." Huang Renxun's substantial sale of NVIDIA Corporation stock not to "escape at the peak" It is worth noting that Huang Renxun's recent substantial sale of NVIDIA Corporation stock has sparked speculation about whether he is "escaping at the peak". It is reported that in a series of transactions from June 13 to September 4, Huang Renxun sold nearly 5.3 million shares of NVIDIA Corporation stock at a price of 120,000 shares per transaction, totaling approximately $633 million. Data shows that Huang Renxun has been selling NVIDIA Corporation stock worth about $14 million almost every day in recent months. However, Huang Renxun's recent stock sales were all carried out through 10b5-1 trading rules, which means that the stock sales were not panic selling or so-called "escaping at the peak". According to the latest document from the US Securities and Exchange Commission (SEC) on September 5, these transactions are part of a 10b5-1 rule trading plan established earlier this year. According to the plan arrangement, Huang Renxun will sell up to 6 million shares of NVIDIA Corporation stock by March 31, 2025. Regarding why Huang Renxun is selling NVIDIA Corporation stock in such large quantities, a former US company executive analyzed, "He may have to sell some stocks to pay taxes, or for other daily expenses or expenses for buying properties, because his cash compensation may not be enough to cover these expenses. Moreover, Huang Renxun holds too many shares of NVIDIA Corporation's stock, and the portion sold is only a very small part of what he holds, not enough to suggest that he is trying to create a high-volume sale." Huang Renxun is the largest individual shareholder of NVIDIA Corporation, holding approximately 3.5% of the company's outstanding shares as of August 9.