Nvidia (NVDA) provided investors with information to calm Wall Street’s concerns about possible slowdowns in production of the next-generation Blackwell chip. company earnings call It said Wednesday it is on track to beat previous revenue estimates for the current quarter.

“Blackwell production is in full swing,” CEO Jensen Huang said during the call. “I think we’re in very good shape at this point in terms of the Blackwell ramp.”

Before the earnings call, Information reported on November 17 Nvidia has been struggling with overheating issues with its Blackwell-based servers, leading suppliers to adjust the design of the racks housing the servers. Nvidia responded at the time by saying design iterations were normal and expected.

The report follows a separate Blackwell design issue that Nvidia addressed over the summer, which gave Wall Street pause over whether the chip would reach customers’ doors in time.

Now Nvidia says the chips are not only being shipped, but are in the possession of all of the company’s major partners. In the third quarter, Nvidia, cloud service providers, companies like Microsoft (MSFT), Amazon (AMZN) and Google (GOOG, Google), made 50% of chipmaker’s data center revenue. Getting them to receive Blackwell chips as soon as possible is critical to Nvidia’s continued growth. And the company appears to be doing just that.

Read more: Nvidia’s value almost tripled in 11 months: Is it time to invest?

“There is always a great deal of complexity with any product launch, and Blackwell is no different,” Dan Flax, senior research analyst and managing director at Neuberger Berman, told Yahoo Finance.

“And I think what’s remarkable is that Nvidia and its partners are doing well. “I think supply will increase over the next few months as they really scale Blackwell.”

But there’s one problem that continues to plague Nvidia: supply constraints. The large number of companies looking for positions to grab the artificial intelligence giant’s chips makes it difficult to meet the demand.

“It is possible that demand exceeds supply,” Huang told analysts. “And that’s to be expected, as we’re at the beginning of this productive AI revolution.”

For some perspective, Meta CEO Mark Zuckerberg told investors during the company’s most recent earnings call that the social media giant trains its Llama 4 AI models on a server cluster consisting of: More than 100,000 Nvidia H100 chips.

The H100 is Nvidia’s previous generation Hopper AI accelerator. While Blackwell promises much better performance than Hopper, giant AI companies like Meta (META) are trying to get as many of these chips as possible.

As Blackwell production continues to increase, the company needs to be able to ensure its most important customers get the chips they need.

“Nvidia’s supply chain and entire data center power capacity is increasing very rapidly,” Antoine Chkaiban, technology infrastructure analyst at New Street Research, told Yahoo Finance in a video interview. “And the implication is that there are no bottlenecks preventing Nvidia from meeting consensus expectations next year.”

In Wednesday’s earnings call, Nvidia reported better-than-expected results on the top and bottom lines; It beat Wall Street’s forecasts and modestly topped the outlook for the current quarter. Data Center sales increased 112% as revenue increased 94% year over year. Despite this, shares fell in early trading Thursday.

This isn’t the first time the market has turned towards Nvidia after posting a massive revenue increase. Investors also pulled back after the company’s last earnings report and rallied behind the stock in subsequent weeks, making Nvidia the world’s largest publicly traded company, ahead of Apple earlier this month.

Email Daniel Howley at [email protected]. Follow him on Twitter: @DanielHowley.

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