Nvidia CEO Jensen Huang recently expressed enthusiasm over the overwhelming demand for the company's next-generation AI chip, Blackwell. In an interview with CNBC's "Closing Bell Overtime," Huang described the eagerness for the chip as "insane." Mentioning the intense competition, he noted that everyone is vying to be the first to acquire these advanced computing solutions. This high anticipation translated positively into the financial markets, as evidenced by Nvidia's shares climbing approximately 3% on Thursday morning following Huang's remarks.
The Blackwell chip is attracting significant interest, particularly from major players like OpenAI, Microsoft, and Meta, who are heavily investing in AI data centers. These centers are essential for running advanced AI-driven products such as ChatGPT and Copilot. The chip's price is projected to be between $30,000 and $40,000 per unit, reflecting its cutting-edge capabilities and strategic importance for companies at the forefront of AI innovation.
Nvidia has clearly positioned itself as a leader in the AI sphere, riding the wave of the industry's boom. The company's stock has seen an impressive 150% rise year-to-date, driven by strong financial performance and a substantial increase in revenue. During the fiscal second quarter, Nvidia saw its revenues soar by 122% compared to the previous year, reaching $30.04 billion. Looking ahead, the company anticipates earning $32.5 billion in sales in the current quarter, further cementing its robust financial trajectory.
In the interview, Huang emphasized Nvidia's commitment to innovation under rapid technological advancements. He highlighted the company's strategy to enhance capabilities, boost throughput, and optimize costs and energy efficiency. With everything progressing as planned, Huang conveyed confidence in Nvidia's path to achieving these goals, underlining the company's dedication to sustaining its leadership in AI technology.
The company's financial outlook continues to be promising, with Chief Financial Officer Colette Kress indicating an expectation to generate multiple billions in Blackwell revenue starting in the fourth fiscal quarter. Moreover, Huang shared plans for Nvidia to annually update its AI platform, aiming to enhance performance by two to three times, which will likely propel the company's innovative journey further.
