NVIDIA’s new Blackwell architecture significantly boosted the company’s Data Center compute revenues, contributing nearly 70% of the segment, which increased by 73% year-over-year to $39 billion in the first quarter of fiscal 2026. The architecture is designed for AI tasks and is already being utilized by major companies like Microsoft, Google, and OpenAI. NVIDIA anticipates that hundreds of AI factories worldwide will be powered by Blackwell chips, which they claim deliver 30 times faster inference than prior systems.
Despite facing challenges from competitors Advanced Micro Devices (AMD) and Intel, both of whom are developing alternative AI platforms, NVIDIA’s dominance remains strong due to its integrated approach combining hardware, networking, and AI software. AMD’s Instinct MI300X and Intel’s Gaudi 3 chips offer competitive features, but NVIDIA’s Blackwell continues to lead in overall performance and adoption.
