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Nvidia CFO Colette Kress assured that AI chip demand remains strong, driven by large and complex AI models, despite supply constraints for the upcoming Blackwell chip architecture.
The Blackwell chips, integral for AI systems, face supply shortages likely to persist well into Nvidia’s next fiscal year, although shipments have exceeded previous expectations.
Nvidia reported $19.3 billion in net income and $35.1 billion in revenue for Q3 FY2025, reflecting year-over-year growth of 109% and 94%, respectively, and projects $37.5 billion in revenue for the next quarter.
Nvidia dominates the AI chip market with 80% share but faces rising competition from AMD and tech giants like Amazon and Microsoft, which are developing their own AI chips.
Nvidia is exploring mergers, acquisitions, and new AI business models to utilize its significant cash flow, which totaled $56 billion over the past year.
Chipmaker Nvidia is seeking to shore up confidence in its ability to meet demand as supply concerns regarding AI chips rise.
“We are not near any point in time … where we are seeing any type of a slowdown, but [what] we are seeing right now is demand continues to be fueled a lot due to the size of [AI] models, the complexity of inferencing and we are still getting ready for our next [chip] architecture, Blackwell,” Nvidia CFO Colette Kress said, speaking at a keynote address at the UBS Global Technology and AI Conference in Scottsdale, Arizona on Tuesday.
Nvidia, the second most valuable publicly-traded U.S. company, has grown into a technology powerhouse fueling the rise of AI giants, including Microsoft, Google, Meta and Elon Musk’s xAI.
Despite her optimistic tone, Kress acknowledged some supply pressure on the company’s latest graphics processing unit, Blackwell. Considered an important building block for AI systems, graphics processing units are a type of chip designed to carry out rapid calculations.
“What we see in terms of our Blackwell [chip], which will be here this quarter, is also probably a supply constraint that is going to take us well into our next fiscal year for several quarters from now,” she said, while noting that this does not imply a slowdown.
Read the full article: Nvidia CFO looks to ward against AI chip supply constraints
