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Blackwell might be Nvidia's hottest ticket in 2025, but this other opportunity could be even bigger in the long run

    Semiconductor designer for the past two years Nvidia (NASDAQ: NVDA) has become a household name thanks to its leading position in the artificial intelligence (AI) revolution. The company's bread and butter is a unique piece of hardware called the graphics processing unit (GPU). To use a metaphor, GPUs are essentially the engine that powers the AI ​​vehicle as a whole.

    Nvidia's wide range of GPUs has been the biggest spark for the company's meteoric rise to one of the world's most valuable companies. This new growth has helped Nvidia generate billions in profit and free cash flow on a consistent basis in recent quarters. The company has been investing relentlessly in enhanced research and development (R&D) initiatives and is on the cusp of its next big opportunity.

    Of course, I'm talking about Nvidia's highly anticipated next-generation GPU architecture known as Blackwell.

    Let's take a look at why the launch of Blackwell is such an important moment for Nvidia in 2025. I'll also reveal another advantage that Nvidia has up its sleeve that's getting little attention at the moment. In the long run, this other product could even be bigger than Blackwell.

    Blackwell is expected to offer a new set of capabilities and features aimed at training and inferring data workloads for more advanced generative AI applications.

    One of the biggest products of the AI ​​movement in recent years has been the rise of large language models (LLM). Metaplatforms, Amazon, AlphabetAnd Microsoft have all invested or developed their own LLMs. Additionally, each of these “Magnificent Seven” members is a customer of Nvidia, which relies heavily on the company's GPUs and data center services.

    With this in mind, it should come as no surprise that big tech companies have been catapulted to the front rows of the Blackwell purchase orders. In fact, demand is so high that Blackwell is reportedly sold out in the next twelve months.

    Research analysts from Morgan Stanley and Piper Sandler predict that Blackwell's fourth-quarter revenue will fall somewhere between $5 billion and $8 billion. At the high end of this forecast, that would represent 45% of Nvidia's total revenue from computing and networking products during the fourth quarter of last year – and it comes from just one product.

    While it's clear that Blackwell is a big deal, Nvidia has something else up its sleeve that I think deserves a little more attention.

    The letters AI on top of a computer chip.
    Image source: Getty Images.

    One of the most well-known technology media personalities is Beth Kindig, the CEO of I/O Fund. A few days ago, Kindig posted on