Nvidia defies potential delays in AI chips

Analysts remain optimistic about Nvidia's revenue and demand despite concerns over potential delays in the introduction of new artificial intelligence chips. Media reports indicate that delays of up to three months due to design flaws in the Blackwell chips could affect customers like Meta Platforms, Alphabet's Google, and Microsoft. Analyst Stacy Rasgon from Bernstein emphasizes in a statement that demand continues to rise and all major hyperscalers are increasing their investment outlooks. Should delays occur, Nvidia's existing 'Grace Hopper' chips could bridge the gap. "Nvidia's significant competitive advantage is currently so large that we do not believe a three-month delay will cause substantial market share shifts," Rasgon added. Nvidia, which controls over 80% of the AI chip market, remains a central player and beneficiary of the growing AI development sector. CEO Jensen Huang announced in May that the latest Blackwell series is expected to come to market in the second quarter. However, supply chain constraints persist as manufacturers like Taiwan's TSMC struggle to expand their capacities for complex techniques such as advanced packaging. Nvidia CFO Colette Kress also stated in May that demand for the Blackwell chips could exceed supply "well into next year." Despite minor delays, analysts at TD Cowen are confident that issues might be resolved through firmware or platform updates. The delays do not reflect on the impact on Nvidia's data center revenues in 2025, according to the analysts. A Nvidia spokesperson recently confirmed that demand for Hopper chips remains strong and production of Blackwell chips will ramp up in the second half of the year.