.September 24, 2024 02:17:00 PM

NVIDIA is experiencing high demand for its Hopper and Blackwell GPUs, with Blackwell chips now in volume production due to strong interest from major customers. This has led to a more than 4% increase in the company’s shares.

Oracle has announced plans to build a Zettascale AI supercluster using 131,000 Nvidia Blackwell GPUs, providing 2.4 ZettaFLOPS of AI performance. This move has positively impacted Nvidia’s outlook and its semiconductor suppliers.

Oracle’s request for additional GPU supply at a recent event indicates optimism for the Asia-based AI semiconductor supply chain. TSMC’s CoWoS capacity is projected to increase to 80,000-90,000 wafers per month by 2025.

Demand for Nvidia’s Hopper H200 GPUs remains strong, particularly among smaller cloud service providers and sovereign AI projects, alleviating concerns about inventory buildup. Morgan Stanley estimates that over 450,000 Blackwell chips will be produced in Q4 2024, potentially generating over $10 billion in revenue for Nvidia.

Morgan Stanley acknowledges that Nvidia is working through technical challenges with its GB200 server racks, which is common for new product launches and is being addressed as part of the standard debugging process.