Nvidia demand continues to outweigh supply, JPMorgan says

Published 04/09/2025, 14:34

Investing.com -- Nvidia’s supply chain remains under pressure as demand for its AI chips continues to surpass availability, JPMorgan said following an investor meeting with Toshiya Hari, the company’s vice president of investor relations and strategic finance.

“Demand continues to outweigh supply, keeping lead times stretched but stable,” JPMorgan noted, adding that these remain measured “in quarters, not months,” underscoring the strength of AI spending more than two years into the current cycle. 

Nvidia reiterated that its upcoming Vera Rubin platform is on track for a second-half 2026 launch despite industry speculation of delays.

The firm highlighted that Nvidia’s FQ2 inventory increase, up 33% quarter-on-quarter to $8.7 billion, was in support of the Blackwell Ultra (BWU) ramp rather than a build-up of older GB200 chips. 

“The vast majority of the finished goods… has already shipped this quarter,” analysts wrote.

Networking is said to remain another growth driver, with attach rates in the “high-70s%/80% range.” 

JPMorgan said management emphasised that Nvidia does not bundle networking with compute but provides customers with system design flexibility.

On China, Nvidia has received U.S. government approval to export its H20 GPUs, but no purchase orders have been booked. 

According to JPMorgan, Nvidia has enough inventory to support $2 billion to $5 billion of H20 revenue in FQ3 if orders come through, which could imply guidance of $56 billion to $59 billion.

Looking ahead, JPMorgan believes rack production will inflect higher in the second half of fiscal 2026, with supply chain partners boosting capacity and an “ASP uplift from a mix shift towards BWU” adding further support.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.