Dan Ives, a prominent tech analyst, took to social media on Thursday to express his enthusiasm for Nvidia Corp.’s NVDA next-generation Blackwell chips.
What Happened: Ives described the chips as “The LeBron of chip releases,” highlighting their rapid market ramp-up and absence of overheating issues, contrary to recent reports. He further characterized Nvidia’s earnings as a “press release that should be framed and hung in the Louvre.”
Despite Ives’ positive outlook, recent reports have indicated that Nvidia’s Blackwell AI chips are facing overheating problems when integrated into server racks designed to accommodate up to 72 chips. The Information reported that Nvidia has requested suppliers to adjust rack designs to mitigate these issues.
Why It Matters: The enthusiasm expressed by Ives comes at a crucial time for Nvidia. CEO Jensen Huang has predicted that Blackwell will surpass the company’s Hopper GPUs in shipments by 2025, underscoring the strategic importance of these chips. Despite overheating concerns, Nvidia’s stock has shown resilience, even amid delays in Blackwell’s production and missed fourth-quarter whisper numbers, as noted by Gary Black, managing partner of The Future Fund.
Meanwhile, the chipmaker reported a 94% year-over-year increase in revenue, reaching $35.1 billion, exceeding the anticipated $33.12 billion. Additionally, the company's earnings per share were 81 cents, surpassing the projected 75 cents.
Despite these strong financial results, investor concerns arose due to a slowdown in sales compared to previous quarters.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy of Nvidia
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