Nvidia (NASDAQ: NVDA) the moment all Nvidia watchers and investors have been waiting for has arrived: the tech giant is about to officially launch its Blackwell architecture and chip. Why is this so important? For a few reasons. First, Blackwell includes Nvidia’s cutting-edge innovations, which demonstrate the company’s technological strengths and potentially secure its leadership in the artificial intelligence (AI) market. And second, this platform could be transformative for customers’ AI projects, and this should translate into more revenue growth for Nvidia.
As the AI boom has progressed, this tech giant has proven to play a central role in the development of this fast-growing market. Nvidia dominates the AI chip market and has launched a full portfolio of related products and services to form a complete AI empire. The Blackwell release will be an important part of the Nvidia picture. With the launch about to happen, here’s what to look out for.
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First, a quick look at Nvidia’s story so far. The company’s graphics processing units (GPUs) today primarily generate revenue from AI customers, but this wasn’t always the case. Just a few years ago, GPUs primarily served the video games market, and Nvidia’s sales were a fraction of today’s levels. But the GPU’s ability to process many tasks at once made it ideal for applications far beyond gaming – and it showed great potential in the field of AI.
NVDA revenue (annual) data according to YCharts
As Nvidia expanded into these markets, including AI, profits increased, as did stock performance. Profits in recent quarters have risen by triple digits and Nvidia stock is heading for a 2,300% gain over the past five years.
With Blackwell on the horizon, Nvidia and investors can see gains in both earnings and share price performance.
So let’s take a look at what we know so far about the Blackwell release and what to look out for in the future. Nvidia has already started bringing this new top platform to customers. In the third quarter, the company shipped 13,000 sample GPUs to customers. And also in the quarter, including companies Microsoft And Oracle posted on social media, saying they were starting to receive Blackwell.
“Microsoft Azure is the first cloud to run Nvidia’s Blackwell system with GB200-powered AI servers,” Microsoft Azure wrote on October 8 on X (formerly Twitter).
And Nvidia said in the company’s November 20 third-quarter 2025 earnings call:
“Blackwell is now owned by all of our major partners, and they are working to take their data centers to the next level. We are integrating Blackwell systems into our customers’ various data center configurations.”
Demand for Blackwell exceeds supply, so it may take some time before Nvidia can serve every customer and reach its maximum revenue potential. But there is reason to be optimistic about significant growth, even in the early stages of product launch. This comes as Nvidia says it is “racing to scale up offerings” – and has predicted that Blackwell’s revenue in this current fourth quarter could surpass its initial forecast of several billion dollars.
What we need to look at next are the trends among Nvidia’s customers: have they managed to scale Blackwell? Do they offer Blackwell powered products and services to their customers?
According to Nvidia, customers are currently preparing to offer Blackwell on a large scale. So it will be important to keep an eye out for any announcements or social media posts from cloud service providers and other major Nvidia customers for any details.
Nvidia has said it is now ramping up Blackwell production in the fourth quarter, making this a key moment for the company. And of course, any comments from Nvidia about launch pace or demand should give us clues as to what to expect in the coming months.
We should also keep in mind that Blackwell represents an opportunity that will extend well beyond this initial rollout period. And greater benefits should come once this phase is over. For example, Nvidia’s gross margin will be lower – in the low 70% range – as the company manages the logistics and costs of the launch. But once the production and delivery process becomes more routine, this will return to the mid-70%.
All this means that, if you’re an Nvidia investor or potential investor, this is a crucial time to keep an eye on the company – this launch should set the tone for the quarters to come.
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Adria Cimino has positions at Oracle. The Motley Fool holds positions in and recommends Microsoft, Nvidia, and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls to Microsoft and short January 2026 $405 calls to Microsoft. The Motley Fool has a disclosure policy.
Nvidia’s Blackwell launch: Here’s what to look out for was originally published by The Motley Fool
