Nvidia is seeing unprecedented demand for its next-generation artificial intelligence chip, Blackwell, according to CEO Jensen Huang. In a recent interview with CNBC’s “Closing Bell Overtime,” Huang described the demand as "insane," with companies racing to be the first to get their hands on this cutting-edge technology. Nvidia’s shares responded positively, rising by about 3% on Thursday following Huang’s remarks.
Priced between $30,000 and $40,000 per unit, the Blackwell chip is highly sought after by major players like OpenAI, Microsoft, and Meta—companies that are building AI data centers for products such as ChatGPT and Copilot. This intense interest comes as Nvidia continues to ride the wave of the AI boom, with its stock up roughly 150% this year alone. The company's financial performance reflects this surge, with fiscal second-quarter revenue skyrocketing to $30.04 billion, up 122% year-over-year. Nvidia is projecting even stronger results for the current quarter, anticipating sales of $32.5 billion.
Huang emphasized that the rapid advancements in AI technology are allowing Nvidia to push its innovation even further. “At a time when the technology is moving so fast, it gives us an opportunity to triple down,” he said, adding that the company's focus is on increasing capabilities, improving efficiency, and cutting costs. Everything, according to Huang, is "on track."
Looking ahead, Nvidia’s CFO Colette Kress revealed that the company expects to generate billions in revenue from Blackwell during the fourth fiscal quarter. Nvidia also plans to update its AI platform annually, aiming to boost performance by two to three times with each iteration. This aggressive approach positions Nvidia as a key player in the AI revolution, as demand for advanced AI infrastructure continues to soar globally.
