Nvidia is likely sold out of Blackwell until the end of next year, but this has not yet impacted its earnings reports, likely due to issues mostly centering on data center infrastructure around the chips. Despite strong demand for Blackwell and Nvidia's ability to deliver despite production issues, analysts at D.A. Davidson warn that a decline in demand for Nvidia compute is inevitable as customers begin to scrutinize their return on investment on AI compute.
Key takeaways:
- Nvidia's modest guidance for its fiscal fourth quarter is expected to be surpassed due to strong demand for its new artificial intelligence platform, Blackwell.
- Despite supply constraints, Nvidia expects Blackwell demand to exceed supply into fiscal year 2026, and the company is likely "sold out" of Blackwell until the end of next year.
- Nvidia's shares are up over 198% so far this year, and the company's strategy of offering guidance it knows it can beat by a small margin is expected to help maintain this rally.
- Analysts at D.A. Davidson warn that despite near-term demand, a decline in demand for Nvidia compute is inevitable as customers begin to scrutinize their return on investment on AI compute.