Nvidia CEO Jensen Huang remains optimistic about the revenue outlook for its upcoming Blackwell chips, despite the company’s troubled rollout.
The tech company beat revenue estimates, earnings per share and third-quarter guidance in its earnings report on Wednesday, officially recording another strong quarter.
Despite Nvidia’s win, Wednesday’s earnings report and subsequent conference call left some analysts clamoring for more information, particularly about the company’s Blackwell chip designs, which have been hit by production issues in recent months.
The company acknowledged this week that the Blackwell issues have forced rework and contributed to Nvidia’s lower gross margins.
Shortly after the first conference call, Citi projected that Blackwell’s possible delay would cause Nvidia’s profits to fall short of the $2 billion forecast it had secured over the past four quarters, Business Insider previously reported.
But in an interview with Bloomberg TV after the earnings call, Huang defended Blackwell’s rollout, saying the company had made “massive changes to improve revenue” and insisting the platform’s functionality was “great.”
“Today we’re taking Blackwell samples all over the world,” Huang told the outlet, “and showing people around the Blackwell system in action.”
The CEO reiterated that Nvidia has begun mass production of Blackwell, saying production shipments will begin in the company’s fourth quarter and that Blackwell revenue will reach “several billion dollars” and grow from there.
Interest in the next generation of chips remains high, but Blackwell’s production capacity is still weeks or months away from ramping up.
As a result, demand for the company’s current graphics processing unit, Hopper, remains “very strong,” Huang said during the earnings conference call.
But Huang told Bloomberg that AI spending is still on the rise.
“Next year is going to be a great one too,” he said.
