NVIDIA's Blackwell Chip Production Set to Skyrocket: What Traders Should Know for 2025

NVIDIA (NASDAQ: NVDA) is gearing up for an impressive upswing in its production capabilities with the anticipated launch of its next-generation Blackwell AI chip. A recent analysis by Morgan Stanley suggests that the revenue generated from Blackwell could very well outstrip that of the existing Hopper chips in the first quarter of 2025.

According to the investment bank’s analysts, insights gleaned from supply chain checks indicate that production output for the Blackwell chips could hit between 750,000 to 800,000 units in Q1 2025. This marks a significant increase from the estimated 250,000 to 300,000 units projected for the fourth quarter of 2024—nearly a tripling of output. Morgan Stanley estimates that this production surge will contribute an impressive $5 to $10 billion to NVIDIA's revenue in Q4 2024 alone.

NVIDIA CEO Jensen Huang recently described the demand for Blackwell chips as “insane” during an interview, indicating that clientele are clamoring for large quantities of these high-performance processors. This places Blackwell in a strategic position, especially since these new chips carry a notable price premium—ranging from 60% to 70% higher than their H200 counterparts. This premium pricing is poised to enable Blackwell to eclipse Hopper in terms of revenue in the upcoming quarter.

Looking ahead, NVIDIA is also gearing up to unveil its GB300 NVL72 server racks in June 2025, which are expected to bolster the company’s supply chain capabilities and further amplify demand for its Blackwell chips.

From a market perspective, Morgan Stanley views the accelerating production of Blackwell as bullish for stocks affiliated with NVIDIA's GPU supply chain. Companies like TSMC, KYEC, and ASE stand to gain significantly. Additionally, Aspeed may see benefits attributed to greater BMC (Baseboard Management Controller) content, though causal impacts from ongoing specification changes may introduce some uncertainty regarding the timing of this ramp-up.