The company’s advanced technology continues to drive strong market interest.
August 5 (Reuters) – Analysts have suggested that concerns about a delay in the release of Nvidia’s (NVDA.O) upcoming artificial-intelligence chips may be overstated. They believe the delay is unlikely to significantly affect the chip giant’s revenue or demand.
Media reports indicate that Nvidia’s Blackwell chips might experience delays of three months or more due to design issues, potentially impacting customers like Meta Platforms (META.O), Alphabet (GOOGL.O), and Microsoft (MSFT.O).
Despite recent concerns, “it is evident that demand levels are still increasing, with major hyperscalers continuing to expand their capital expenditure forecasts,” Bernstein analyst Stacy Rasgon wrote in a note on Monday. Rasgon also mentioned that if delays occur, sales of Nvidia’s older “Grace Hopper” chips should help bridge the gap. “Nvidia’s competitive advantage is so substantial at the moment that we don’t believe a three-month delay will lead to significant shifts in market share,” Rasgon added.
Nvidia, holding over 80% of the AI chip market, is uniquely positioned as both a leading enabler and a major beneficiary of the rapid growth in AI development. Nvidia CEO Jensen Huang had stated in May that the company’s latest Blackwell series of AI chips was expected to ship in the second quarter.
The supply of highly sought-after AI chips has remained limited as manufacturers like Taiwan’s TSMC (2330.TW) have struggled to keep up and increase capacity for complex processes such as advanced packaging.
Nvidia CFO Colette Kress had mentioned in May that demand for Blackwell chips might outstrip supply “well into next year.” Despite potential minor delays, TD Cowen analysts expressed confidence that these issues would likely be resolved through firmware or platform updates. They noted that the delays do not reflect the demand driving Nvidia’s data center revenue expected in 2025.
In May, Nvidia CFO Colette Kress stated that demand for Blackwell chips might surpass supply “well into next year.” Despite potential minor delays, TD Cowen analysts expressed confidence that these issues would likely be addressed through firmware or platform updates. They emphasized that these delays do not reflect the strong demand driving Nvidia’s data center revenue anticipated for 2025.
In response to a media report last week, an Nvidia spokesperson stated, “Hopper demand is very strong, broad sampling of Blackwell has begun, and production is on schedule to increase in the second half of the year.”