Over the past two years, semiconductor designer Nvidia (NASDAQ:NVDA) has become a household name thanks to its leading position in the artificial intelligence (AI) revolution. The company’s mainstay is its proprietary hardware called graphics processing units (GPUs). Metaphorically speaking, the GPU is essentially the engine that powers the entire AI vehicle.
Nvidia’s wealth of GPUs has been the biggest catalyst for the company’s rapid rise to becoming one of the world’s most valuable businesses. This new growth has allowed Nvidia to consistently generate billions of dollars in profits and free cash flow over the past few quarters. The company is constantly investing in strengthening its research and development (R&D) initiatives and is poised for its next big opportunity.
I’m, of course, talking about Nvidia’s long-awaited next-generation GPU architecture known as Blackwell.
Let’s take a look at why Blackwell’s announcement is such a big moment for Nvidia in 2025. We’ll also reveal another secret Nvidia asset that’s currently largely unreported. In the long run, this other product could become even bigger than Blackwell.
Blackwell is expected to deliver a host of new capabilities for data workload training and inference for more sophisticated generative AI applications.
One of the biggest achievements of the AI movement in recent years has been the rise of large-scale language models (LLMs). Meta Platforms, Amazon, Alphabet, and Microsoft have all invested in or developed their own LLMs. Additionally, each of these “Magnificent Seven” members is a customer of Nvidia and relies heavily on the company’s GPU and data center services.
With this in mind, it’s no surprise that big tech companies have jumped to the forefront of Blackwell’s order book. In fact, demand is so high that Blackwell is reportedly selling out over the next 12 months.
Research analysts at Morgan Stanley and Piper Sandler model Blackwell’s sales to fall between $5 billion and $8 billion in the fourth quarter. At the high end of this estimate, this would represent 45% of Nvidia’s total revenue from computing and networking products in the fourth quarter of last fiscal year. And that’s because of just one product.
While Blackwell is clearly a big deal, Nvidia has something else up its sleeve that deserves a little more attention.
Image source: Getty Images.
One tech-savvy media personality is Beth Kindig, CEO of I/O Fund. A few days ago, Kindig posted on X (formerly Twitter) that Blackwell’s successor, Rubin, is “rumored to be rolling out 6 months ahead of schedule, as early as early 2026.” .
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That’s correct. Nvidia is already working on a successor to Blackwell. If the demand themes discussed above are any indication of what’s to come for Nvidia, I think there’s a good chance that the launch of the Rubin architecture will be a huge success.
Wedbush Securities research analyst Dan Ives recently suggested that investment in AI infrastructure could exceed $1 trillion in just three years. Thanks to Blackwell, and now thanks to Rubin, I think NVIDIA is in a good position to gradually gain market share.
While anything could happen during Rubin’s manufacturing or quality assurance process, we are encouraged that we are ahead of schedule (so far). The one-two punch of Mr. Blackwell and Mr. Rubin could help Nvidia further separate itself from a fiercely competitive environment, while reaccelerating sales growth and profit margins.
Competition is also increasing from companies like Advanced Micro Devices and some of Nvidia’s own customers, but I think Nvidia is laying the foundation it needs for sustained growth. Longer term, I still see Nvidia as one of the cornerstones of the entire AI story and am optimistic as the company continues to invest in strategic innovation.
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John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. Alphabet executive Suzanne Frye is a member of The Motley Fool’s board of directors. Randi Zuckerberg is a former head of market development and spokesperson at Facebook, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool’s board of directors. Adam Spatacco has held positions at Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: A long January 2026 $395 call on Microsoft and a short January 2026 $405 call on Microsoft. The Motley Fool has a disclosure policy.
“Blackwell could be Nvidia’s hottest ticket in 2025, but this other opportunity could be even bigger in the long run” was originally published by The Motley Fool
Adnan is a passionate doctor from Pakistan with a keen interest in exploring the world of politics, sports, and international affairs. As an avid reader and lifelong learner, he is deeply committed to sharing insights, perspectives, and thought-provoking ideas. His journey combines a love for knowledge with an analytical approach to current events, aiming to inspire meaningful conversations and broaden understanding across a wide range of topics.
