Nvidia's Blackwell era will test the world's most valuable company in a highwire act
Nov 21, 2024 - businessinsider.com
Nvidia's new flagship AI chip, Blackwell, is in full production with 13,000 samples shipped to customers last quarter. However, the company faces challenges in meeting the high demand due to the chip's complex supply chain and the need for high performance. The Blackwell chip is a "full-stack" system with customizable configurations to cater to a diverse AI market, requiring Nvidia to efficiently manage a widespread supply chain and ensure high performance to meet customer expectations.
Despite these challenges, Nvidia remains ahead of its rivals like AMD in the AI accelerator market. However, the company's high valuation and investor expectations put pressure on the success of the Blackwell chip. Any failure to meet these expectations could potentially lead to a fall in Nvidia's market position.
Key takeaways:
Nvidia's new flagship AI chip, Blackwell, is now in full production with 13,000 samples shipped to customers last quarter.
The company must navigate complex supply chains and meet high performance expectations to deliver Blackwell successfully.
Despite strong third-quarter earnings, investors remain cautious due to the challenges Nvidia faces with the production and performance of Blackwell.
While Nvidia currently dominates the AI accelerator market, the company must meet high investor expectations to maintain its position and market share.
