Products powered by Nvidia's RTX Spark, a super chip built for personal computers, sold out in preorders despite price tags topping 4.7 million won. Analysts called the response unusual at a time when rising prices for key components have weighed on PC demand and clouded the outlook for the second half.
Taiwan's Economic Daily News reported on the 31st that ASUS and MSI sold out their entire first batch of PCs equipped with the RTX Spark, developed jointly by Nvidia and MediaTek, during preorders. The manufacturers are now asking Nvidia to allocate more units, according to the report.
"Preorders for the new RTX Spark series greatly exceeded our expectations," ASUS co-CEO Hu Shu-bin said. "Our initial planned volume has sold out, and we are aggressively asking Nvidia for additional supply." The executive added that the company is "very optimistic about sales next year." MSI Chief Product Officer Peng Ren-fang said the company's first batch of laptops using the N1x chip is nearly sold out on the back of strong orders from customers in China, Taiwan and the United States, adding that MSI is actively placing additional orders with Nvidia.
Unveiled by Nvidia in June, the RTX Spark targets high-end personal computers capable of professional graphics work and gaming, and it can run artificial intelligence on the device without an internet connection. Built on TSMC's 3-nanometer process, it pairs Nvidia's Blackwell RTX graphics processing unit with a 20-core Grace central processing unit. Nvidia CEO Jensen Huang has described it as "an entirely new PC and a personal AI computer."
The RTX Spark comes in two versions: the high-end N1x and the mainstream N1. Laptops carrying the chip are due to launch officially this fall. Retail prices for N1x-based PCs have not been disclosed, but the market expects them to be set above 110,000 Taiwan dollars, or about 4.75 million won. First-wave partner brands include Dell, HP, Lenovo and Microsoft alongside ASUS and MSI, with Acer and Gigabyte to follow.
Second-Quarter Revenue Doubles as Huang Sees AI "Inflection Point"
Nvidia reported second-quarter revenue of $96.22 billion on the 27th, up 106% from a year earlier. The figure beat the $92.17 billion consensus compiled by London Stock Exchange Group by more than $4 billion and marked a record for a 13th straight quarter. Earnings per share came in at $2.22, also above the $2.10 estimate. Gross margin was 75% and operating margin 66.5%. On a conference call after the results for the second quarter of fiscal 2027, covering May through July, Chief Financial Officer Colette Kress said revenue would grow about 70% in fiscal 2028.
Huang said in a statement at the time that AI has reached an inflection point and is now doing useful work. Tokens are productive and profitable, he said, and compute now translates directly into revenue, with demand accelerating.
Nvidia Chooses Alliance Over Rivalry With $3.5 Billion MediaTek Investment
Nvidia is investing $3.5 billion in MediaTek, the Taiwanese fabless chip designer, in a move to hold the center of the hardware chain rather than confine itself to top-tier AI accelerators.
Bloomberg reported on the 31st that Nvidia will make the $3.5 billion investment through convertible bonds. Nvidia will build its next-generation AI computing platform, while MediaTek will adopt Nvidia's NVLink Fusion and its newly unveiled NVHBM technology to design custom AI chips, or XPUs. Those chips will be used to smooth communication between components inside Nvidia's AI data centers. The two companies also agreed to jointly develop PC chips combining Nvidia graphics processing units with MediaTek systems-on-chip.
Amazon earlier agreed to deploy an additional two million Nvidia components and pledged to use Nvidia's interconnect technology in its own in-house chips. The two deals allow Nvidia to remain at the center of AI data center construction even when customers deploy chips that replace its flagship products.
MediaTek is challenging Broadcom and Marvell Technology by helping data center owners build their own components. For Huang, who was born in Taiwan, the deal widens partnerships while reducing reliance on the smartphone market. MediaTek secured a partnership with Alphabet's Google earlier this year and has been building credibility as a design partner for large technology companies seeking their own AI chips.
The deal is part of a pattern in which Nvidia's management has invested in customers, rivals and AI-related businesses. Some investors worry that such investments look like circular transactions. Nvidia has said the investments speed adoption of its technology and turn the gears of the AI industry.
"AI is transforming every computing platform, from the world's largest AI factories to PCs and cars," Huang said. "Nvidia will build platforms that extend accelerated computing into new markets and let customers freely build differentiated AI systems at enormous scale."
