According to Zhito Finance, with its ai chips, $NVIDIA (NVDA.US)$ has surpassed $Microsoft (MSFT.US)$and $Apple (AAPL.US)$to become the global company with the highest market cap. Its latest generation Blackwell chip may be its most significant moment. Wedbush Securities analyst Dan Ives referred to this release as the "LeBron of chip releases" and noted the "huge demand trajectory" for nvidia's latest chip.

Earlier this year, the fate of the company's latest chip seemed to be in jeopardy due to production issues that delayed shipments by months. Last Sunday, media reports stated that overheating issues occurred when connecting Blackwell chips on nvidia's server racks.

During the third-quarter earnings conference call held last week, the chip giant did not mention this issue, instead assuring investors that Blackwell has been fully mass-produced "after successfully implementing large-scale changes," and that the Blackwell products delivered by the company this quarter would exceed previous expectations.

According to chief financial officer Colette Kress, nvidia shipped 0.013 million GPU samples to customers in the third quarter. The company's CEO Jensen Huang stated that shipments of Blackwell could have reached several billion dollars. Huang remarked, "You can see that, based on all the systems being built, Blackwell is doing very well."

nvidia's revenue for the third quarter was $35.08 billion. The company's datacenter division accounted for most of this, at $30.77 billion. While it has long been a gaming company, its gaming revenue for the third quarter was only $3.3 billion. The company's profit was $19.31 billion.

Hunter Wolf Research noted: "I believe Blackwell has the ability to drive nvidia's future growth, and nvidia will continue to benefit from the rapid expansion of the datacenter market."

Kress stated that although the initial gross margin of the Blackwell chip is expected to be around the lower end of the 70% range, it is anticipated that the gross margin will increase to around the mid-range of 70% as production scales up.

The company's initial popular ai product is the H100 chip. The H100 was released in 2022 and started slowly until the demand surged during the ai boom that began in 2023. Nvidia stated that the H200 chip launched last year achieved the fastest product growth in the company's history. The company expects that the demand for its H series chips will continue for most of next year.

When the company first announced its H100 chip, its quarterly revenue was only around 8 billion dollars. When it launched the H200 chip, the quarterly revenue was less than 20 billion dollars.

Ives added, "The production and demand for Blackwell looks strong, and Jensen Huang's very optimistic comments during the conference call will become the focus of Wall Street's attention, which will send the bears back to their caves. Blackwell represents the next frontier for Nvidia and the entire ai revolution."

Editor/Somer