Report: Huang warned of an avalanche of excess Nvidia supply
Original title: Jensen Huang Admitted He Was Facing an "Avalanche" of Excess Wafers and Memory
Citing the Wall Street Journal, the site says cloud buyers shifting off Nvidia left prepaid TSMC wafers and memory oversupplied.
RespawnFirst, citing the Wall Street Journal, says Jensen Huang told colleagues in August 2026 that major cloud providers were moving to in-house chips while prepaid TSMC wafers and memory were arriving like an “avalanche.” The account says CFO Colette Kress, described as interim CEO, cut a proposed OpenAI compute backstop from about 8 gigawatts, up to $250 billion, to about 4.25 gigawatts, up to $125 billion. It also says Nvidia has contacted TSMC to wind down orders. Analyst Ed Zitron’s estimate that at least $200 billion of Nvidia AI chips sit idle is presented as his figure.
Unconfirmed: Leadership change, deal sizes, and the wafer glut are attributed to a WSJ report and analyst commentary, not Nvidia statements in this text.
- The reported clash with Colette Kress was in August 2026.
- Kress is described as Nvidia’s interim CEO after Huang’s exit.
- The signed guarantee cap is put at roughly 4.25 gigawatts, up to $125 billion.
- The piece says Nvidia asked TSMC to wind down chip orders.
- Ed Zitron estimates at least $200 billion of AI chips are idle.
From the original article
3 min read at respawnfirst.com
For the past two years, the narrative around inflated GPU and RAM prices has been the insatiable AI demand eating up wafer at TSMC and every module on Earth must go to AI data centers. However, the narrative is cracking ever since reports of channel stuffing and over commitments came out.
By oscarfr · respawnfirst.com
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