Nvidia has consistently surpassed Wall Street's revenue expectations over the past eight quarters, cementing its position at the center of the generative AI revolution. However, with analysts projecting a slower growth pace, Nvidia's ability to navigate delays and supply chain challenges for its latest AI chips, the Blackwell series, will be crucial. For its fiscal Q3, sales are expected to surge 82.8% year-on-year to $33.13 billion—a remarkable figure but marking the slowest growth in six quarters. Looking ahead, fourth-quarter growth is forecasted to decelerate further to 67.6%, driven by challenges in scaling up Blackwell chip production. Analysts remain divided on the revenue potential of these chips, with estimates ranging from $5 billion to $13 billion.

Supply chain constraints are casting uncertainty on Nvidia’s ability to meet demand, with its manufacturing partner, TSMC, highlighting capacity tightness into 2025. Despite these hurdles, Nvidia's dominance in the AI chip market, where it holds an 80% share, remains unchallenged. Its CUDA software framework, now a multi-billion-dollar recurring revenue stream growing over 100% annually, further strengthens its market position. With major cloud providers like Microsoft and Amazon investing heavily in AI infrastructure, Nvidia’s GPUs are poised to remain in high demand. As Nvidia prepares to report its Q3 results, investors are watching closely, with the company’s performance likely to influence the broader rally in AI-related stocks.