👉 Background: Nvidia is an American tech company that creates computer chips and software. They originally started creating tech for video games, but now they're the biggest supplier of AI hardware and software.

👉 What happened: Now, Nvidia has announced a huge $20.8 billion revenue for their second quarter. They're one of the few companies that have the expertise in building specialised AI chips at this stage - so their profit of $9.5 billion is a crazy increase of 843% year over year.

👉 What else: Now, they're facing insane levels of demand from all corners of the world and that's caused a shortage of chips. Looks like AI computing chips are the Taylor Swift tickets of the tech world...

What's the key learning?

💡Having significantly higher demand than supply seems like a good problem to have... at first. But this supply and demand imbalance puts them at risk if it remains in the long term.

💡Get this: there's currently at least 50% more demand for Nvidia's AI chips than they can supply for. And while Nvidia's got the head start on these chips, they risk one of their competitors swooping in on the remnant customers.

💡So Nvidia will want to ramp up its supply chain and manufacturing as fast as possible to capture the remainder of the market.

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