Demand for 's (NASDAQ: NVDA) AI chips is proving insatiable. The launch of ChatGPT from OpenAI late last year opened the AI floodgates by demonstrating the power and potential of generative AI. The latest AI tech can generate text, write code, produce images and videos, mimic voices, and do all sorts of other things.

Both training and using AI models requires an incredible amount of computational horsepower. NVIDIA's GPUs are well suited for the task, and they've become the de facto standard for AI workloads. The company offers a family of data center products, and it's working to ramp up supply to meet surging demand.

NVIDIA expects its second-quarter revenue to rocket to $11 billion, up from $7.19 billion in the first quarter, largely due to this AI boom. NVIDIA doesn't manufacture its own chips but instead relies on third-party foundries like TSMC and Samsung. TSMC has the technological edge, so if NVIDIA wants the most advanced manufacturing process for its ultrapricey AI chips, TSMC is the only game in town.

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Source Fool.com