Nvidia has put to rest rumors of delays for its next-generation Blackwell AI chips, reassuring investors and tech enthusiasts alike. The company announced during its Q2 FY 2025 earnings call that Blackwell is on schedule, with production ramping up in Q4 and continuing into FY2026.
Yield Improvements and Revenue Projections
The tech giant confirmed making changes to the Blackwell GPU mask to enhance production yield. This adjustment, far from being a major redesign, is aimed at optimizing the manufacturing process using TSMC's 4NP node. Nvidia's confidence in Blackwell's trajectory is evident in its projection to ship several billion dollars worth of the new hardware in Q4 alone.
Hopper Remains Strong
While Blackwell generates excitement, Nvidia emphasized that demand for its current Hopper architecture remains robust. The company expects Hopper shipments to increase in the second half of FY2025, indicating a smooth transition between generations.
Gaming Sector Thrives
Amidst the AI fervor, Nvidia's gaming division posted impressive results. Q2 FY2025 saw gaming revenue reach a record $2.88 billion, up 8.8% quarter-over-quarter and 15.8% year-over-year. This growth is attributed to strong sales of GeForce RTX 40 series GPUs and increased demand during the back-to-school season.
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| Nvidia continues to thrive in the gaming sector, with record revenue driven by the popularity of its GPUs as CEO Jensen Huang supports the brand |
Market Impact
As Nvidia cements its position in the AI chip market, its performance continues to influence the broader tech sector. The company's Q2 earnings report was highly anticipated, with analysts suggesting it could trigger significant market movements. Nvidia's ability to meet or exceed expectations with Blackwell could have far-reaching implications for the entire AI and tech industry.
With Blackwell samples already shipped to customers and production set to scale, Nvidia appears poised to maintain its dominance in the AI chip market. The coming quarters will be crucial as the industry watches how Blackwell performs and how quickly it can be adopted by major tech players already lining up to integrate these next-generation AI accelerators.