Nvidia’s latest chip generation, Blackwell, is performing well, with the company reporting strong revenue growth fueled by surging demand for AI infrastructure. Revenue for the quarter ending in October rose 94% year-over-year to $35.1 billion, surpassing analysts' expectations of $33.25 billion. Although growth slowed compared to the previous quarter, Nvidia’s guidance of $37.5 billion for the current quarter aligned with Wall Street’s $37 billion projection. Despite this, Nvidia's shares dipped 1.4% in after-hours trading, reflecting high investor expectations amidst ongoing AI hype.

CEO Jensen Huang addressed concerns about Blackwell overheating issues, emphasizing the chip’s strong performance and surpassing sales forecasts for the quarter. "Blackwell is in great shape," Huang assured, crediting the supply chain team for increasing availability despite constraints with manufacturing partner TSMC.

The company’s data center segment, driven by demand for AI chips like Hopper and Blackwell, saw a 112% revenue increase to $30.8 billion. Major customers, including hyperscalers like Microsoft, Google, and Meta, are rapidly integrating Blackwell chips into their infrastructure. CFO Colette Kress noted fierce competition among these companies to adopt the new technology first.

Nvidia’s market value has surged to $3.6 trillion, with its shares up over 200% this year, largely due to the AI boom. The company’s gross margins held steady at 75%, and its adjusted net income reached $20 billion, exceeding expectations. Analysts predict that demand for Blackwell chips will outpace supply well into 2026.

As a major player in the AI and tech sectors, Nvidia’s results continue to serve as a barometer for the broader technology market, with companies heavily investing in AI infrastructure.