Nvidia's "Blackwell" Chips Propel Stock Rebound Amid Strong Q3 Performance
1min read Nvidia, the leading AI chipmaker, recently reassured investors about the progress of its next-generation "Blackwell" chips, promising that they are on track and set to launch as planned. Following what could have been a potential cause for jitters, Nvidia's confidence in its new product line provided a much-needed boost, resulting in a notable rebound in its stock price.
Despite the initial post-market slump where Nvidia’s shares dropped more than 5%, the company's assurances seemed to have mollified investor concerns. As a result, pre-market trading saw Nvidia bounce back by approximately 2%, erasing previous losses. This optimistic sentiment also had ripple effects on broader indices, with the S&P 500 and Nasdaq futures rising, reflecting Nvidia's influential role in the tech sector.
On the back of Nvidia's recently unveiled financial results for its fiscal third quarter of 2025, the anxiety among investors was evident when performance exceeded consensus estimates but failed to meet the lofty highest forecasts. The company reported $35.08 billion in revenue, a robust 94% increase year-over-year, and GAAP net income of $19.31 billion, exceeding analyst predictions.
CEO Jensen Huang emphasized the high demand for both the current generation of "Hopper" GPUs and the forthcoming "Blackwell" chips, underscoring their pivotal place in reinforcing Nvidia’s market stronghold. Huang stated that Blackwell is fully in production and poised to experience significant demand over the coming quarters.
Echoing Huang's remarks, Nvidia's CFO, Colette Kress, confirmed that the Blackwell chips are slated for shipment beginning this quarter, with accelerated distribution set for the upcoming year. Kress acknowledged certain supply constraints for both Hopper and Blackwell systems, but remained optimistic about overcoming these hurdles.
The anticipation surrounding Blackwell, coupled with Nvidia's strong third-quarter performance, has set high expectations for the company's forthcoming quarters. As investors watch closely, Nvidia's progress in deploying Blackwell will likely play a critical role in its financial trajectory, highlighting its strategic importance in the burgeoning AI landscape.