Nvidia revealed that its next-generation Blackwell chips are expected to surpass earlier sales projections, signaling robust demand from AI developers. Following a quarter where Nvidia’s revenue nearly doubled, CEO Jensen Huang and CFO Colette Kress emphasized Blackwell’s pivotal role in sustaining growth during a Wednesday call with analysts.
Huang confirmed that production is ramping up, stating, “We will deliver this quarter more Blackwells than we had previously estimated.” Despite reports of engineering delays, Nvidia assured investors that the rollout remains on schedule, with early shipments already reaching major clients like Microsoft, Oracle, and OpenAI. So far, 13,000 Blackwell chips have been delivered, primarily for testing and preparation ahead of large-scale shipments.
Huang explained that initial shipments allow companies to adapt their systems and software, with volume shipments expected to begin this quarter. The CEO projected even higher shipment numbers in subsequent quarters, underlining Blackwell’s strategic importance.
While Nvidia’s stock dipped slightly, analysts view the company’s optimism about Blackwell as a stabilizing factor. Huang acknowledged that demand continues to outpace supply, attributing the shortfall to manufacturing constraints. The supply chain involves partners like TSMC, SK Hynix, and Micron, reflecting the complexity of ramping up production for a high-demand product.
Huang also noted that Blackwell’s gross margins are currently lower than Nvidia’s average due to production complexities, but he expects improvements as the product matures. The chip, offered as a standalone component or as part of complete server configurations, is poised to replace Nvidia’s current AI chip, Hopper, in creating next-generation AI models.
Nvidia expects Blackwell sales to eventually surpass those of Hopper. Huang highlighted this transition, stating, “The next generation starts at 100,000 Blackwells,” setting the stage for an AI-driven growth trajectory.
Featured image courtesy of The National
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