nvidia poised for stock surge amid blackwell architecture buzz

2025-02-25 nvidia

Santa Clara, Tuesday, 25 February 2025.
analysts predict nvidia’s stock will jump following the february 26 earnings report, fueled by the launch of the blackwell architecture. the report may reveal the initial success of blackwell, a customizable platform of seven chips where demand has already surpassed supply. nvidia’s ceo described the demand as ‘insane’. despite a recent dip after a chinese startup spent $6 million on lower-priced chips, major players like meta and alphabet reaffirm ai spending, signaling continued confidence in nvidia’s market dominance. the company anticipates surpassing its earlier revenue forecast thanks to blackwell.

market dominance and competitive edge

Nvidia’s robust position in the AI chip market underpins analysts’ optimism [1]. The company’s gross margin, exceeding 70%, showcases its pricing power and efficient operations [1]. Wedbush’s Dan Ives indicated that Nvidia’s customers have maintained their AI spending plans, reinforcing the company’s stability [1]. Despite a temporary setback when DeepSeek’s $6 million investment in lower-priced chips triggered a 16% stock decline, this appears to be an isolated incident [1]. Consultant SemiAnalysis estimates DeepSeek actually invested over $500 million for chips alone [1].

blackwell architecture and production capacity

Nvidia has secured over 70% of Taiwan Semiconductor’s (TSM) advanced CoWoS-L packaging capacity to meet the robust demand for its Blackwell architecture GPUs [3][8]. Analysts predict Blackwell chip shipments will increase by more than 20% per quarter, with annual shipments potentially exceeding 2 million units [8]. The CoWoS-L technology offers improvements in performance, yield, and cost compared to previous solutions [8]. This technology will be used in Blackwell chips, including the B200/B300 series for high-performance computing and the RTX 50 series for the consumer market [8].

strategic shifts and future outlook

Nvidia plans to gradually discontinue its Hopper architecture H100/H200 chips as Blackwell production ramps up, with the transition expected by mid-year [3][8]. Taiwan Semiconductor anticipates its revenue from advanced packaging will exceed 10% in 2024, up from 8% in 2023, with gross margins above the company average [8]. Institutional analysts suggest that the U.S. Stargate plan will stimulate demand for AI servers, further boosting Nvidia’s orders from Taiwan Semiconductor [3][8]. Major cloud computing service providers’ sustained demand for AI chips will also support Nvidia’s performance [8].

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Blackwell architecture Stock prediction