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Wells Fargo says Nvidia ‘so much more than GPUs’ after next-gen chip announcement


Nvidia (NASDAQ:NVDA)’s latest announcements at Computex in Taiwan have further proved that the chipmaker is “so much more than GPUs,” Wells Fargo analysts highlighted in a Sunday note.

During his keynote address at National Taiwan University, Nvidia CEO Jensen Huang unveiled a new Blackwell Ultra chip for 2025 and a next-generation platform in development called Rubin for 2026. The company also announced the widespread adoption of its Spectrum-X Ethernet AI-optimized networking platform.

Wells Fargo analysts believe the Spectrum-X Ethernet platform is particularly noteworthy for its ability to support 512 radix scaling by 2025 with the Spectrum-X800 Ultra and 102.4T silicon, which will scale up to millions of GPUs by 2026 with the Spectrum-X1600.

“Nvidia emphasized that Spectrum-X will move to an annual cadence,” the note added.

Meanwhile, the newly-revealed Rubin platform, expected in 2026, will include cutting-edge components such as the NVLink v6 switch, Vera CPUs, and the CX9 SuperNIC. The Rubin GPU will feature 8 HBM4, while the “Rubin Ultra” will come with 12 HBM4 chips. .Furthermore, the technology behemoth also announced it will launch its DRIVE platform with Mercedes in 2025 and Jaguar-Land Rover in 2026. Wells Fargo analysts noted the importance of these partnerships, saying they are viewed as “inflection points for Nvidia’s Auto segment.”

The investment bank pointed out several more takeaways from the event, including Nvidia’s emphasis on NVDA Inference Microservices (NIMs), which leverage an installed base of hundreds of millions of CUDA GPUs.

“CUDA has now reached a virtuous cycle; underpinned by a +5 million developer ecosystem spanning across almost every industry,” analysts added.

In addition, Wells Fargo mentioned that Nvidia’s next-generation Blackwell GPUs are already in production, with sample shipments expected in the second fiscal quarter of 2025 and revenue ramping in the second half of 2025. These GPUs have significantly improved energy efficiency, reducing energy per token created by more than 300 times over the past eight years.

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