Reporting Blackwell’s positive view of Nvidia: Investing.com’s Wells Fargo

Investing.com – Reports over the weekend suggested that NVIDIA’s (NASDAQ:) DGX B200 system is significantly more expensive than its predecessor, suggesting a potential boost to the company’s upcoming Blackwell platform cycle.

According to distributor Broadberry, the list price for the DGX B200 system is $515,410. This system features the NVIDIA branded 8-way GPU system with 1,440GB total memory and 64TB/s bandwidth.

Analysts at Wells Fargo believe this pricing “represents an incremental positive data point as we/investors become increasingly focused on the upcoming Blackwell platform cycle, implying a 40-50% upside over the DGX H100 systems.”

The price of the DGX B200 represents an increase of over 40% compared to the DGX H100 systems, which are currently listed at approximately $358,400.

The price jump could also ease concerns about NVIDIA’s gross margin percentage growth, as the higher price could indicate stronger-than-expected demand for NVIDIA’s latest technology.

The pricing information follows the recent delivery of the first DGX B200 systems to OpenAI on October 9th.

“As we enter NVDA’s Blackwell platform cycle, we expect investors to be particularly focused on demand for NVDA’s GB200 NVL72 rack scales,” the analysts continued.

“We continue to believe that data points/comments from key partners such as Foxconn and Quanta are some of the leading indicators.”

Additionally, Wells Fargo notes that NVIDIA’s software monetization strategy, which includes its Base Command and AI Enterprise software suite, remains underappreciated. Broadberry’s listings imply software subscription costs of about $32,400 per year, available in various multi-year packages.

NVIDIA has previously indicated that it expects its software, software-as-a-service (SaaS) and support revenue to reach about $2 billion per year by year-end, doubling from last year corresponds.