“Nvidia reported that sales of new-generation Blackwell chips will exceed previous forecastsNvidia reports an increase in production of Blackwell chips, despite problems with server overheating. The company expects to beat revenue forecasts, even though demand for the chips outstrips supply.”, — write on: unn.ua
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The company Nvidia (NVDA), engaged in the development of Blackwell chips, said that their production is “boiling” and they plan to increase its volumes. Currently, Nvidia is struggling with overheating problems in its servers based on the Blackwell processor, which forces suppliers to adjust the design of the racks in which the servers themselves are placed. The company responded that design iterations are normal and expected. The report concerned a separate Blackwell design issue that Nvidia fixed over the summer, raising doubts on Wall Street about whether the chip would make it to customers in time. To which Nvidia (NVDA) said that the chips are already in the hands of all the main partners of the company. In the third quarter, Nvidia reported that cloud service providers such as Microsoft, Amazon and Google accounted for 50% of the chip maker’s data center revenue. And it is precisely on how quickly they receive chips from the company that the further growth of Nvidia depends.
However, the company is currently facing a problem with which it is actively fighting — supply restrictions. And all because of the fact that a large number of companies compete for microcircuits of the AI giant, which makes it difficult to meet demand.
“This is a case of demand exceeding supply,” Nvidia CEO Jensen Huang told analysts. “And that’s to be expected because we’re at the beginning of this generative AI revolution.”
According to Meta CEO Mark Zuckerberg, the social media giant trains its Llama 4 AI models on a server cluster made up of more than 100,000 Nvidia H100 chips.
The H100 is Nvidia’s previous generation Hopper AI accelerator. With Blackwell promising much better performance than Hopper, it stands to reason that big AI companies like Meta will be looking to get their hands on as many of these chips as possible.
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Nvidia reported earnings results that beat Wall Street estimates on Wednesday. Turnover jumped 94% year-over-year, and data center sales grew 112%. However, shares fell in early trading on Thursday.
This isn’t the first time the market has turned away from Nvidia after the company posted big revenue growth. Investors pulled back after the company’s latest earnings report, then rallied again in the weeks that followed, making Nvidia the world’s largest publicly traded company, overtaking Apple earlier this month.
We will remind
Nvidia investors expect stock volatility after its third-quarter report, which could change $300 billion in market value. Analysts forecast a drop in profitability to 74.4%.
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