Nvidia’s (NASDAQ:NVDA) President and CEO, Jensen Huang recently pledged to meet Japan’s rising chip demand. The race for artificial intelligence has meant that demand for AI processors in countries like Japan and China is rising. This demand is further fueled by new government initiatives that bolster the AI initiative.
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In a bid to ride this AI wave, Japan had earmarked around 2 trillion yen ($13.60 billion) for chip investment last month. Some of these funds are expected to be used by chip foundry, Rapidus to manufacture chips in Japan’s northern island of Hokkaido while some amount will be used to support Taiwanese chipmaker TSMC (TSM).
As Japan rushes to redevelop its semiconductor infrastructure, the demand for AI processors, more specifically Nvidia’s graphics processing units (GPUs) is heating up. The chip giant’s President and CEO, Jensen Huang, addressed the company’s efforts to meet this high demand amid a recent visit to the country.
After meeting the Japanese Prime Minister Fumio Kishida, Huang commented, “Demand is very high, but I promised the prime minister we will do our very, very best to prioritise Japan’s requirements for GPUs.”
What is the Prediction for Nvidia Stock?
Analysts remain bullish about NVDA stock with a Strong Buy consensus rating based on 31 Buys and three Holds. The average NVDA price target of $661 implies an upside potential of 41.4% at current levels even as NVDA has surged by more than 200% year-to-date.
