Nvidia Corp. NVDA CEO Jensen Huang is upbeat about the company's latest Blackwell chips after the company delivered better-than-expected results in the March 2024 quarter.
What Happened: Huang is all fired up about the company's recently launched Blackwell chips, revealing that not only is the production already underway, but that the company will start seeing revenue from these new AI super chips this year itself.
"We will see a lot of Blackwell revenue this year," Huang said, answering a question during the company's post-earnings call with analysts.
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He revealed that while Blackwell is under production, shipments will begin in Q2, and installations in data centers will be visible in Q4.
But Nvidia is not stopping here with just one Blackwell chip – Huang revealed that newer versions are in the pipeline, too.
"After Blackwell… we have other Blackwells coming," Huang said, adding that the update timeframe has been kept short at a "one-year rhythm."
"It's going to be terrific."
One of the reasons behind the shorter upgrade cycle, according to Huang, is that Nvidia's customers "need to make money today." He added that these customers will be able to buy new chips as and when they come and "performance average" their way into it.
Huang also noted that the Blackwell platform "forms the foundation for trillion-parameter scale generative AI."
Why It Matters: Nvidia's blowout performance in the first quarter has top tech analysts excited about the chip designer's prospects.
Key Banc Capital Markets analyst John Vinh said Nvidia's Q1 performance shows the "AI revolution" is real, while Deepwater Asset Management's Gene Munster thinks that the "Nvidia party is turning into a rager."
Reacting to Nvidia's performance, Wedbush's Dan Ives thinks the tech industry is headed for trillion-dollar valuations, as traditional data centers evolve to become AI factories.
Price Action: Nvidia's shares surged nearly 7% in premarket trading on Thursday, after closing at $949.50 on Wednesday, according to Benzinga Pro.
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Photo courtesy: Nvidia
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