Nvidia (NASDAQ:NVDA) The moment all Nvidia watchers and investors have been waiting for has arrived. The tech giant is officially launching its Blackwell architecture and chips. Why is this so important? There are several reasons. First, Blackwell incorporates Nvidia’s latest innovations, demonstrating the company’s technological strength and thus potentially securing leadership in the artificial intelligence (AI) market. And second, the platform has the potential to transform customers’ AI projects, which should lead to further revenue growth for Nvidia.
As the AI boom progresses, the tech giant has proven itself to be at the heart of the development of this high-growth market. Nvidia dominates the AI chip market and is launching an entire portfolio of related products and services to form a complete AI empire. Blackwell’s release will be an important part of Nvidia’s big picture. Well, now that we’re nearing launch, here’s what to look out for.
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First, let’s briefly overview Nvidia’s story so far. The company’s graphics processing units (GPUs) currently generate revenue primarily from AI customers, but that wasn’t always the case. Just a few years ago, GPUs primarily served the video game market, and Nvidia’s revenue was a fraction of today’s levels. However, the GPU’s ability to process many tasks at once makes it ideal for uses other than gaming, and it has shown great potential in the field of AI.
NVDA Revenue (Annual) Graph
NVDA Revenue (Annual) Data by YCharts
As Nvidia expanded into these markets, including AI, its revenue increased and its stock price rose. Earnings have increased by triple digits in recent quarters, and NVIDIA stock is on track for a 2,300% gain over the past five years.
With the acquisition of Blackwell on the horizon, Nvidia and its investors can expect to benefit in terms of both revenue and stock performance going forward.
So let’s take a look at what we know so far about Blackwell’s release and what’s to look forward to. Nvidia has already begun offering this premier new platform to customers. In the third quarter, the company shipped 13,000 sample GPUs to customers. Also in the quarter, companies including Microsoft and Oracle posted on social media that they had begun accepting Blackwell.
“Microsoft Azure is the first cloud to run Nvidia’s Blackwell system with GB200-powered AI servers,” Microsoft Azure wrote on Oct. 8 on X (formerly Twitter).
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NVIDIA stated the following in its fiscal year 2025 third quarter financial results announcement on November 20th.
“Blackwell is now in the hands of all of our major partners, and each partner is ramping up their data centers. We are integrating Blackwell systems into our customers’ diverse data center configurations.”
Demand for Blackwell exceeds supply, so it may take time for Nvidia to serve all customers and maximize its revenue potential. However, there is reason to be optimistic about significant growth even in the early stages of product release. This comes as NVIDIA says it is “competing to scale up supply,” and predicts that Blackwell’s revenue for this fourth quarter could be billions of dollars higher than initially expected. This is because we do.
The next thing to look at is Nvidia’s customer trends. Have they successfully scaled up Blackwell? Are they delivering products and services powered by Blackwell to their customers?
Nvidia says it is now preparing to offer Blackwell to customers at scale. Therefore, it’s important to pay close attention to announcements and social media posts from cloud service providers and other major Nvidia customers for more information.
Nvidia has announced it will ramp up Blackwell production in the fourth quarter, marking a significant moment for the company. And of course, comments from Nvidia regarding the pace of launch and demand should give us a hint as to what to expect in the coming months.
Blackwell should also keep in mind that the opportunity extends far beyond this initial deployment period. And once you get past this stage, you should see even greater benefits. For example, NVIDIA’s gross margins are low, in the low 70% range, as the company manages startup logistics and expenses. But as production and delivery processes become more routine, that percentage will return to the mid-70% range.
All of this means that if you’re an Nvidia investor or potential investor, now is an important time to keep an eye on Nvidia. This announcement should set the tone for the coming quarters.
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Adria Cimino has a position at Oracle. The Motley Fool has positions in and recommends Microsoft, Nvidia, and Oracle. The Motley Fool recommends the following options: A long January 2026 $395 call on Microsoft and a short January 2026 $405 call on Microsoft. The Motley Fool has a disclosure policy.
Nvidia’s Blackwell announcement: Here’s what to watch next. Originally published by The Motley Fool
