Recently, the AI chip king NVIDIA has received a lot of news, attracting market attention.
On Wednesday local time, Nvidia CEO Huang Renxun revealed that with the help of TSMC, the design defects of Nvidia's latest Blackwell AI chip have been fixed and are expected to be shipped in the fourth quarter. In addition, the company also announced the launch of an AI supercomputer called Gefion in Denmark, mainly used in fields such as drug development and disease diagnosis.
However, with the arrival of the new earnings season, the market is currently most concerned about Nvidia's performance, and its financial report is expected to be released on November 20th.
Analysts optimistically predict that based on the rapid development of artificial intelligence driving a surge in chip demand and Nvidia's market leader position, the company's third quarter revenue will increase by 83% to reach $33.1 billion.
Blackwell AI chip design flaw fixed
On Wednesday local time, Nvidia CEO Huang Renxun revealed that with the help of long-term manufacturing partner TSMC, the design flaws of its latest Blackwell AI chip have been fixed.
Huang Renxun said, "The design flaws were functional, but they resulted in a very low yield rate. This is 100% Nvidia's fault
He also mentioned that in order to ensure the normal operation of computing devices based on Blackwell, Nvidia designed seven different types of chips from scratch and had to be put into production at the same time, and TSMC helped Nvidia recover from production difficulties by restoring Blackwell's production.
This chip was launched in March this year and was originally scheduled to be shipped in the second quarter, but was postponed due to design defects. Although there were rumors that the defect had caused tension between Nvidia and TSMC, Huang Renxun refuted this.
At the recent Goldman Sachs conference, Huang Renxun stated that the repaired chips will be shipped in the fourth quarter of this year.
Tianfeng International analyst Guo Mingchi predicts that the shipment volume of Blackwell chips in the fourth quarter will be between 150000 and 200000 pieces, and it is expected that the shipment volume will significantly increase by 200% to 250% in the first quarter of 2025, reaching 500000 to 550000 pieces.
In addition, Nvidia announced yesterday that it has launched an AI supercomputer called Gefion in Denmark. This supercomputer, driven by 1528 GPUs, was jointly developed by NVIDIA, the Novo Nordisk Foundation, and the Danish Export and Investment Fund.
It is understood that Gefion is mainly used in fields such as drug development, disease diagnosis, treatment, and complex life science challenges, and can be used by researchers from both the public and private sectors in Denmark.
Gefion will become a smart factory, a new industry that has never existed before, and it is at the top of the IT industry, "said Huang Renxun
The market is eagerly anticipating
As the new season of financial reporting begins, the market is eagerly anticipating Nvidia's financial report. The company's financial report was released relatively late and is expected to be released on November 20th.
Bloomberg's tracking data shows that Wall Street analysts expect Nvidia's third quarter revenue to grow 83% to $33.1 billion; Earnings per share will reach $0.74, a year-on-year increase of 84%.
Based on the rapid development of artificial intelligence driving a surge in chip demand and Nvidia's market leader position, Wall Street analysts generally indicate that they remain bullish on Nvidia until the next quarter's financial report is released.
Last Friday, Bank of America raised its target price for Nvidia from $165 to $190.
Bank of America analyst Vivek Arya said that in addition to the growth of the entire artificial intelligence market, Nvidia's strength in the field of enterprise artificial intelligence, namely its partnerships with companies such as Microsoft and Accenture, is another factor that has contributed to its success. Arya believes that NVDA is the preferred partner for enterprise artificial intelligence hardware and software.
Wedbush analyst Dan Ives also agrees with this view, pointing out that with the explosive growth of AI use cases, there is a wave of enterprise spending, and Nvidia is leading the market. In addition, Ives predicts that technology stocks will rise another 20% in 2025, as the tech bull market has just entered the next stage led by the artificial intelligence revolution.
In terms of market performance, Nvidia's stock price has recently broken through a historical high.
On October 21st local time, Nvidia's stock price rose more than 4% to $143.71, with a market value exceeding $3.5 trillion for the first time, just one step away from the top valued Apple Inc.