GBD 2016 Dementia Collaborators. Global, regional, and national burden of Alzheimer’s disease and other dementias, 1990-2016: a systematic analysis for the Global Burden of Disease Study 2016. Lancet Neurol. 2019;18:88–106.
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GBD 2016 Dementia Collaborators. Global, regional, and national burden of Alzheimer’s disease and other dementias, 1990-2016: a systematic analysis for the Global Burden of Disease Study 2016. Lancet Neurol. 2019;18:88–106.
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The AI chip leader released its much-anticipated Blackwell platform late last year.
The previous big release was the Hopper architecture, launched two years earlier, and the system drove major revenue gains.
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About a year ago, Nvidia (NASDAQ: NVDA) was facing one of its biggest moments ever. The artificial intelligence (AI) chip giant was launching its new Blackwell architecture, a system that was being met with “insane” demand as CEO Jensen Huang told CNBC at the time. The company announced Blackwell in March 2024 and the fourth quarter of the year was the first to include Blackwell revenue.
Blackwell was to be the first release of a new routine for Nvidia: launching chip or entire platform updates on an annual basis. Since that time, this new architecture has helped Nvidia’s earnings roar higher, with Blackwell data center revenue climbing 17% in the most recent quarter from the previous one. In the report, Huang said, “The AI race is on, and Blackwell is the platform at its center.” Meanwhile, Nvidia stock has reflected all of this, advancing 40% so far this year.
Now, it’s logical to wonder where Nvidia will be as this story progresses, for example, 24 months after the Blackwell launch. Here’s what history says.
First, though, let’s consider Nvidia’s path in the AI market so far. The company has always been a graphics processing unit (GPU) powerhouse, but in its earlier days, it mainly sold these high-performance chips to the gaming market. As it became clear that their uses could be much broader, Nvidia developed the CUDA parallel computing platform to make that happen — and then, as the potential of AI emerged, Nvidia didn’t hesitate to put its focus on this exciting market.
That proved to be a fantastic move as it helped Nvidia secure the top spot in the AI chip market — and the quality and speed of its GPUs has kept it there. All of this has resulted in several quarters of double- and triple-digit revenue growth as well as high profitability on sales — gross margin has generally surpassed 70% in recent times.
To keep this leadership going, Nvidia committed to ongoing innovation, with the promise of updating its chips once a year. The company kicked this off with the launch of Blackwell about a year ago, then released update Blackwell Ultra a few months ago. Next up on the agenda is the Vera Rubin system, set for release late next year.
All of these platforms operate together seamlessly, so customers don’t have to wait for a specific one and instead can get in on Nvidia’s current system and easily move forward with the latest innovations when needed. Still, as mentioned earlier, demand from big tech customers for the latest systems has been great — they want to win in the AI race and to do so aim to get their hands on the best tools as soon as possible.
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