Jensen Huang Admitted He Was Facing an "Avalanche" of Excess Wafers and Memory

Nvidia's former CEO Jensen Huang admitted in August 2026 that the company faced an "avalanche" of excess GPU wafers and memory as major cloud providers shifted toward developing their own in-house chips, contradicting the narrative that insatiable AI demand was driving GPU shortages. The admission came during a heated clash with CFO Colette Kress, who successfully reduced Nvidia's financial commitments to companies like OpenAI from $250 billion to $125 billion due to concerns about the company's oversupply and circular financing deals. Nvidia has since contacted TSMC to wind down chip orders, validating earlier reports that the industry's inflated GPU demand narrative was overstated.