Nvidia (NVDA) said Wednesday that its latest Blackwell AI chips have reached full-scale production, generating $11 billion in revenue during its fourth quarter.
“We delivered $11.0 billion of Blackwell architecture revenue in the fourth quarter of fiscal 2025, the fastest product ramp in our company’s history,” said Nvidia CFO Colette Kress in comments released with the chipmaker’s earnings results Wednesday after the bell.
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“Blackwell sales were led by large cloud service providers which represented approximately 50% of our Data Center revenue.”
Nvidia’s fourth quarter earnings surpassed Wall Street’s high expectations.
The chipmaker reported revenue of $39.3 billion, beating Wall Street’s estimate of $38.2 billion, with data center revenue reaching $35.6 billion, ahead of the $34.1 billion expected, according to Bloomberg consensus estimates. The AI chipmaker reported adjusted earnings per share of $0.89, more than the $0.84 expected.
CEO Jensen Huang said in a separate statement, “We’ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter.”
The commentary dispelled fears of further Blackwell delays. Production of massive server racks using the latest AI chips had been pushed back amid reports of overheating issues and glitches, which reportedly prompted Nvidia’s top customers — Microsoft (MSFT), Amazon (AMZN), Google (GOOG), and Meta (META) — to cut orders of Blackwell products. Those four customers alone purchased an estimated $44 billion worth of Nvidia GPUs in the 2024 calendar year, according to a DA Davidson analysis.
Evercore ISI analyst Mark Lipacis had suggested in a note earlier this week that Blackwell production could be pushed back to the middle of 2025. Nvidia’s commentary Wednesday addressed such concerns.
“Based on the Q4 numbers and the guidance, it seems like demand for Blackwell … is very, very strong, and one can assume is coming from the hyperscalers,” Ali Mogharabi, senior equity analyst at WestEnd Capital Management, told Yahoo Finance in an interview after the earnings report.
On the company’s earnings call, Kress added that sales to hyperscalers doubled year over year, adding, “Large CSPs [cloud service providers] were among the first to stand up Blackwell, with Azure, GCP [Google Cloud Products], AWS, and OCI [Oracle Cloud Infrastructure] bringing 200 [Blackwell] systems to cloud regions around the world to meet surging customer demand for AI.”
