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Nvidia CEO Jensen Huang unveils powerful new Black Ultra chips at ‘Super Bowl of AI’

Nvidia CEO Jensen Huang unveils powerful new Black Ultra chips at ‘Super Bowl of AI’

  • 18.03.2025 17:33
  • nypost.com
  • Keywords: AI, Market Growth

Nvidia CEO Jensen Huang unveiled powerful new Black Ultra chips at its GTC conference, highlighting their role in advancing AI capabilities. Despite his optimistic remarks about the growing demand for high-performance AI chips, Nvidia's stock fell more than 3% in after-hours trading.

Microsoft ProductsNvidia ProductsNVDAsentiment_satisfiedMETAsentiment_neutralMSFTsentiment_neutralGMsentiment_satisfied

Estimated market influence

Nvidia

Nvidia

Positivesentiment_satisfied
Analyst rating: Strong buy

Nvidia is at the center of the AI boom, with its chips being essential for advanced AI models.

Meta

Meta

Neutralsentiment_neutral
Analyst rating: Strong buy

Meta continues full steam ahead on AI-related spending despite concerns about Nvidia's chip necessity.

Microsoft

Microsoft

Neutralsentiment_neutral
Analyst rating: Strong buy

Microsoft is also maintaining its AI spending, indicating confidence in the technology's future.

General Motors

General Motors

Positivesentiment_satisfied
Analyst rating: Buy

Nvidia is partnering with GM to develop autonomous vehicles, enhancing their technological capabilities.

Context

Analysis of Nvidia's Blackwell Ultra Chip Launch and Market Implications

  • Key Announcement:

    • Nvidia CEO Jensen Huang unveiled the Blackwell Ultra AI chips at the GTC conference, referred to as the "Super Bowl of AI."
    • The chip is set to begin shipping in the second half of 2024, with a more powerful successor, the Vera Rubin family of chips, launching in the second half of 2026.

  • Market Trend:

    • Demand for advanced AI computation has grown 100x compared to a year ago due to the rise of reasoning models and agentic AI.
    • This shift reflects a move from basic chatbots to more complex tasks, signaling increased reliance on powerful AI chips.

  • Competitive Landscape:

    • Nvidia's strategic product launches aim to maintain leadership in the AI chip market. Competitors like AMD may face pressure to innovate, intensifying competition.
    • Partnerships with Meta, Microsoft, and General Motors underscore Nvidia's expansion into diverse industries, including autonomous vehicles, highlighting its versatility.

  • Investor Reaction:

    • Despite Huang's optimistic remarks, Nvidia's stock dropped over 3% in late trading and fell nearly 20% over the past month. This indicates investor skepticism about the necessity of Nvidia's chips for AI development.

  • Strategic Considerations:

    • The roadmap for future chip releases (Blackwell Ultra in 2024, Vera Rubin in 2026) demonstrates a long-term vision to sustain growth and innovation.
    • Diversification into automotive through the GM partnership highlights strategic moves to tap into growing AI applications beyond traditional sectors.

  • Long-Term Effects:

    • The acceleration of AI adoption across industries could boost Nvidia's revenue if its chips become essential. However, over-reliance on a single sector poses risks, necessitating diversification strategies.

  • Regulatory Implications:

    • Potential future regulations on AI and chip manufacturing may impact Nvidia's operations, underscoring the need for adaptive strategies in compliance and innovation.

This analysis underscores Nvidia's pivotal role in the AI revolution while highlighting challenges and opportunities in a rapidly evolving market.