Nvidia’s rollout of its Blackwell GPUs is progressing as planned, according to tech analyst Kunjan Sobhani from Bloomberg Intelligence. On February 26, 2025, Sobhani indicated that the company is expected to meet its fourth-quarter revenue expectations and may increase its first-quarter guidance due to a significant ramp-up in Blackwell GPU shipments.
- Nvidia's Blackwell GPU rollout is on track.
- Fourth-quarter revenue expectations likely to be met.
- Initial shipments to key customers began in 4Q.
- Increased capital spending from major tech companies.
- Profit margins may return to mid-70s.
Sobhani noted that Nvidia has addressed recent supply-chain delays and demand concerns from hyperscalers. Initial shipments to major clients began in the fourth quarter of 2024 and are expected to increase through the first quarter of 2026.
Nvidia’s Blackwell GPUs are crucial for the company’s growth strategy as they cater to the increasing demand for advanced computing power. The company has successfully navigated supply-chain challenges that previously raised concerns among investors. Sobhani highlighted that the stock has fully recovered from losses related to the DeepSeek incident, indicating renewed investor confidence.
Key points regarding Nvidia’s current situation include:
- Initial shipments to key customers commenced in Q4 2024.
- Increased capital spending from major clients like Meta, Microsoft, Amazon Web Services, and Google is expected to boost sales.
- Profit margins are projected to return to the mid-70s in the latter half of 2025.
As the demand for high-performance GPUs continues to rise, Nvidia’s ability to ramp up production and meet customer needs will be critical. The support from major tech companies is a positive indicator for Nvidia’s sales trajectory moving forward.
In summary, Nvidia’s Blackwell GPU rollout is on track, with initial shipments already underway and expected to increase significantly. The company’s efforts to overcome supply-chain issues and the backing of major tech firms position it well for continued growth in the coming quarters.
