Nvidia unveiled its next-generation Blackwell Ultra accelerator at a press event in Santa Clara on Friday, with Chief Executive Jensen Huang claiming the new chip delivers 50% better large-language-model training performance and 38% better inference performance than the original Blackwell B200 launched a year earlier. Initial production shipments are scheduled for August, with volume ramp through Q4.
The announcement was accompanied by what Huang described as "unprecedented" pre-order commitments. Microsoft, Meta Platforms, Alphabet, Amazon Web Services, and Oracle have collectively pre-committed roughly $42 billion in 2026 Blackwell Ultra deliveries, according to figures shared during the event. Nvidia shares jumped 4.8% to $138.42 on the news, lifting market capitalization back above $3.4 trillion.
TSMC Production Doubled
Taiwan Semiconductor Manufacturing Company has doubled wafer-start capacity for Nvidia's 4nm-derived production node compared with original Blackwell, and Huang revealed that TSMC has agreed to dedicate three additional CoWoS advanced-packaging lines exclusively to Nvidia through 2027. The committed capacity should support deliveries of approximately 4.2 million Blackwell Ultra GPUs in calendar 2026.
Memory partner Micron Technology said it has secured 65% allocation of Nvidia's HBM3E and forthcoming HBM4 memory orders, edging out SK Hynix and Samsung. Micron shares rallied 6.2% to $128.55 on the disclosure, while SK Hynix ADRs slipped 2.3% in U.S. trading.
Sovereign AI Demand Accelerates
Beyond hyperscaler demand, Nvidia disclosed sovereign-AI bookings of approximately $11 billion across 24 countries, with Saudi Arabia's HUMAIN, the United Arab Emirates' G42, France's Mistral, and Japan's SoftBank-backed Sakana AI all signing multi-billion-dollar agreements. The sovereign category, which barely existed two years ago, is now Nvidia's third-largest end market behind cloud and enterprise.
Bank of America analyst Vivek Arya raised his Nvidia price target to $185 from $165, citing what he called "an accelerating second wave" of AI infrastructure spending. Morgan Stanley's Joseph Moore maintained Nvidia as his top semiconductor pick with a $175 target, while warning that competition from custom silicon at Google, Meta, and Amazon could pressure margins by late 2027.