NVIDIA (NVDA) CES Financial Analyst Q&A summary

Production and ramp of Vera Rubin and Grace Blackwell

• Vera Rubin is now in full production, with shipments and revenue recognition expected to begin in the second half of the year.

• The ramp for Vera Rubin is expected to be faster than previous generations due to extensive pre-production de-risking and supply chain preparation.

• Vera Rubin integrates entirely new components, including HBM4 and co-packaged optics, representing a significant technological leap.

• Grace Blackwell transition has been smooth, with strong adoption and ongoing build-outs.

• Next year is anticipated to be the Vera Rubin year, with shipments at scale.

Supply chain, demand, and margin outlook

• Demand remains exceptionally strong, with the company growing at a rate equivalent to a large chip company each quarter.

• Extensive investments and partnerships across the supply chain, including prepayments and direct VRAM procurement, have secured component availability.

• Margins are expected to remain in the mid-70% range, supported by the value delivered through co-design and system-level innovation.

• The company maintains flexibility in architecture to adapt to rapidly evolving workloads, supporting margin sustainability.

• Supply for China will be managed separately to avoid impacting other regions, with government licensing processes ongoing.

Technology and product innovation

• Extreme co-design across chips, networking, and software enables 10x improvements in performance and cost efficiency.

• BlueField-4 SmartNIC and DOCA software are driving leadership in networking and storage for AI factories.

• New context memory storage controllers address bottlenecks in AI inference, creating a new high-performance storage market.

• The company is investing across the stack, from hardware to open models, and leveraging acquisitions like Groq and Fabrica for specialized capabilities.

• Continuous R&D and internal disruption are prioritized to maintain technological leadership.