After an excellent quarter, where Nvidia’s sales nearly doubled, reaching an impressive $140 billion annual revenue run rate, all eyes are now focused on Blackwell—Nvidia’s next-generation AI chip family that promises to revolutionize artificial intelligence computing.
During a recent analyst call, CEO Jensen Huang and CFO Colette Kress provided exciting insights into the Blackwell rollout. The message was clear and confident: production is in full swing, and demand is unprecedented. Huang boldly stated that they will deliver more Blackwell chips this quarter than previously estimated, signaling strong momentum in the AI hardware market.
Early adoption by tech giants is already underway. Microsoft, Oracle, and OpenAI have begun receiving initial Blackwell chips, with 13,000 units already shipped. These early samples are crucial for customer testing and system integration, setting the stage for full-scale deployment in the coming quarters. Huang emphasized that while these initial chips are just the beginning, the company expects exponential growth, promising to ship more Blackwells in each successive quarter.
The chip’s launch comes with some interesting dynamics. Nvidia acknowledges that demand currently exceeds supply—a champagne problem that underscores the rapid acceleration of generative AI technologies. The company has assembled an impressive network of manufacturing partners, including TSMC, Amphenol, Vertiv, SK Hynix, and Micron, to meet the surging global demand.
Financially, Nvidia anticipates “several billion dollars” in Blackwell revenue this quarter, with projections exceeding initial expectations. While gross margins might be slightly lower in the short term, the company confidently predicts margin improvements as the product matures and production scales.
Perhaps most tellingly, Huang provided a glimpse into the future of AI computing. He noted that while the current generation of Hopper chips served around 100,000 units for foundation model development, the next generation of Blackwell is set to start at the same scale. This suggests not just an incremental improvement, but a fundamental leap in AI computational capabilities.
As the generative AI revolution continues to unfold, Nvidia’s Blackwell looks poised to be a critical enabler of the next wave of technological innovation. The tech world will be watching closely as this cutting-edge chip family rolls out and reshapes the landscape of artificial intelligence.
