$NVDA Morgan Stanley says Hopper/Blackwell demand is strong

- Nvidia’s Blackwell chips are now entering volume production, with demand from major customers driving significant growth potential for the company

- The Hopper H200 chips are seeing increased demand from smaller cloud service providers and sovereign AI projects

- Blackwell chips are expected to see 450,000 units produced in the fourth quarter of 2024, translating into a potential revenue opportunity exceeding $10 billion for Nvidia

- While Nvidia is still resolving some technical challenges with its GB200 server racks, these issues are part of the normal debugging process for new product launches

- Hon Hai, Nvidia’s assembly partner, is reportedly on track to begin shipments of the GB200 server rack by late Q4 2024