Nvidia resolves Blackwell chip issues and continues to lead the AI market

The Nvidia company delivered another successful quarterly report, despite rumors of production delays and overheating problems with its new Blackwell chip. On the back of record revenues, Blackwell chips are already in the hands of customers such as Microsoft and OpenAI, strengthening Nvidia’s position in the artificial intelligence market.

Production issues and Blackwell launch

Blackwell was originally scheduled to ship in the second quarter, but due to identified “design flaws” the launch was delayed by several months. These issues led to lower yields of year-old chips, but Nvidia was able to resolve them quickly with the help of its partner, TSMC.

TSMC.

Nvidia CEO Jensen Huang said this week that production of Blackwell chips is now running “at full capacity.”

Nvidia’s CEO Jensen Huang said that production of Blackwell chips is now running “at full capacity.”

“We will ship more Blackwell than we had previously planned, as early as this quarter.”

According to analysts, many of the overheating issues have been resolved, and the chips have begun shipping to major customers including Microsoft and OpenAI. Blackwell sales are expected to bring in several billion dollars for Nvidia in the next quarter.

Nvidia’s financial success

Nvidia earned $35.1 billion for the third quarter, beating analysts’ forecasts of $33.2 billion. Although revenue growth was 94% year-over-year (down from a record 265% in previous quarters), the company continues to dominate the AI market.

The company’s revenue growth was 94% year-over-year (down from a record 265% in previous quarters).

The majority of revenue came from the data center segment, which brought in $30.8 billion (up 112% from last year). However, analysts warned that Blackwell’s production could cut margins because the new chips are more expensive to produce.

Analytics cautioned that Blackwell’s production could reduce margins because the new chips are more expensive to produce.

Blackwell’s importance to the AI industry

Blackwell is an advanced GPU that combines two chips in a single component, offering four times the performance and twice as many transistors as the previous Hopper model. The chip has become a key tool for training complex neural networks.

Nvidia remains a key hardware supplier to large IT companies such as Meta*, which is building a cluster of more than 100,000 Nvidia H100 chips. However, due to high demand, small startups still face a shortage of computing power.

Meta*.

The Future of Nvidia and the AI Market

The CEO of Nvidia is confident that the generative AI market will continue to grow over the next 12-18 months. Major players such as Amazon, Google and Microsoft, who are actively investing in cloud-based AI services, are playing an important role in this process.

Nvidia’s CEO is confident that the generative AI market will continue to grow in the next 12-18 months.

Nvidia is also expanding its presence in the enterprise sector by providing tools for creating AI assistants and agents. Customers include Salesforce, SAP and ServiceNow.

ServiceNow.

With continued growth in AI, Nvidia remains one of the most significant players, providing the infrastructure to further develop the technology and new opportunities.

Salesforce  SAP andServiceNow.

* Owned by Meta, it is recognized as an extremist organization in the Russian Federation and its activities are banned.