Nvidia shares dip despite unveiling new “Blackwell” chip

Nvidia shares fell in premarket trading on Tuesday after more than tripled in worth in the past year. Investors awaited more data on the firm’s latest AI chip, which is expected to cement its lead in the industry further.

Shares of Nvidia, the world’s third most valuable firm, experienced a modest decline of approximately 0.5% following the unveiling of its latest B200 “Blackwell” chip. Some analysts suggested that investors had already anticipated the chip’s initial reveal and were awaiting further details.

High Expectations for “Blackwell” Chip

Kathleen Brooks, research director at Polish broker XTB, noted that “Blackwell” had set a high bar for investors. She highlighted the need for time to assess whether the new chip could deliver significant bottom-line impact for Nvidia compared to its predecessor.

New Software Tools

In addition to the “Blackwell” chip, Nvidia introduced a suite of new software tools aimed at facilitating the sale of artificial intelligence models to companies using Nvidia’s technology. This move underscores the company’s commitment to enhancing its software and hardware ecosystems.

Key Customers for “Blackwell”

The new flagship chip, “Blackwell,” is expected to be adopted by tech giants such as Amazon.com, Alphabet’s Google, Meta Platforms, Microsoft, OpenAI, and Tesla, signaling broad industry interest in Nvidia’s latest offering.

Shift Towards Total Systems

Also read: UBER SETTLES CLASS ACTION LAWSUIT IN AUSTRALIA

Nvidia is transitioning from selling individual chips to offering comprehensive systems. This strategic shift reflects the company’s ambition to provide end-to-end solutions to its customers.

Positive Analyst Sentiment

Despite the slight market dip, Bernstein analysts expressed optimism about “Blackwell,” emphasizing Nvidia’s robust software and hardware ecosystem. They also highlighted the company’s efforts to cater to the growing demand for inference chips, which are crucial for AI models’ real-time processing tasks.

Expanding Market Potential

Analysts believe that the market for inference chips, which facilitate AI model responses to user prompts, has significant growth potential, surpassing that of training chips. Nvidia’s focus on this segment aligns with market trends and positions the company for future success.