Nvidia Announces Higher-than-Expected Sales for Next-Gen Blackwell Chips

After a quarter in which Nvidia's sales nearly doubled, investors and analysts are wondering how long the chip maker, which generates $140 billion in annual revenue, can sustain such growth.

These hopes hinge on Blackwell, the name of Nvidia's family of server products based on its next-generation artificial intelligence chip. CEO Jensen Huang and CFO Colette Kress provided investors with several new data points on how the launch of Blackwell is shaping up during their discussion with analysts on Wednesday. The duo emphasized that the launch is on track and signaled that Blackwell sales in the coming quarters will be limited not by how much Nvidia can sell, but by how many chips and systems it can produce.

Huang stated, "Blackwell production is in full swing. We will deliver more Blackwell this quarter than we previously forecasted."

The comments from Huang and Kress also addressed concerns related to shipment delays spurred by reports claiming that Nvidia is making ongoing engineering changes to resolve issues within its systems.

In a statement on Wednesday, the company confirmed that some of Nvidia's most important end customers have already received Blackwell chips. Microsoft (NASDAQ:MSFT), Oracle, and OpenAI posted images of Blackwell-based server racks on social media, and on Wednesday the company reported that 13,000 Blackwell chips had been shipped to customers.

Huang noted, "At this point, there is still a lot of engineering work to be done. However, as you can see in all the systems that are coming online, Blackwell is in great shape."