New turn in Nvidia chip oversupply as WSJ report details clash

In November 2026, Nvidia told that Jensen Huang left as chief. The reports gave no cause for the exit.

Earlier: Jensen Huang resigns as chief executive of Nvidia

The Wall Street Journal reports that in August 2026, Jensen Huang, then chief of Nvidia, told Kress, the finance chief, about a threat to the firm. Large cloud providers will use other chips. Nvidia must get a very large quantity of wafers and memory. Huang called it an avalanche. Kress is the interim chief at this time. The report gives no word from Nvidia.

What Kress changed

Kress wanted less circular financing. In it, Nvidia gives money to help cloud providers and AI firms buy its chips. The first plan was a guarantee of about 8 gigawatts of OpenAI compute, with a maximum value of $250 billion.

The numbers

Kress cut the limit to about 4.25 gigawatts, a maximum of $125 billion. The report tells that Nvidia asked TSMC to decrease its chip purchases. Analyst Ed Zitron estimates that $200 billion or more of Nvidia chips are not in use in warehouses. This is an estimate, not a count.

What is not known

The report gives no word from Nvidia on these claims. The quantity of the oversupply is not given. Earlier reports by analysts described channel stuffing, in which chips go to buyers that do not use them.

Insight: The finance chief who cut the guarantees now leads Nvidia

In August, Kress cut the guarantee limit from $250 billion to $125 billion. At this time she is the interim chief, and Nvidia shares fell 14% on Thursday. This reads as a gain for the limit: the person who decreased the risk now leads, and more cuts can follow. Nvidia reports results on Tuesday.