Nvidia Shares On the Rise amid Blackwell B200 Chip Announcement

Key Takeaways

  • Nvidia unveils Blackwell B200, claiming it's 30 times faster than predecessors.
  • New chip aims to fortify Nvidia's dominance in AI chip market share.
  • Nvidia's market value soars, now third-most valuable in U.S. stock market.

Nvidia shares have risen slightly since the “AI Woodstock” event, which announced its new chip, Blackwell B200.

Nvidia shares
Nvidia shares | Source: Yahoo Finance

Nvidia’s New Chip

In recent months, Nvidia has kept its foot on the gas with a series of AI chip announcements.

Continuing that spree, the AI semiconductor powerhouse unveiled at its annual developer conference Blackwell B200, a new chip touted to be 30 times faster than its predecessor.

The B200 combines two chips, each the size of Nvidia’s previous offering, into a single chip. With an impressive 208 billion transistors, more than doubling the 80 billion on the company’s prior chip. This design allows all transistors almost simultaneous access to the chip’s memory, thereby boosting productivity.

The new chip is expected to be used by major customers, including Amazon, Google, Meta Platforms, Microsoft, OpenAI, Oracle, and Tesla.

Nvidia’s CEO Jensen Huang also announced a new suite of software tools at the conference. These tools are designed to enable developers to sell their AI models to companies that use Nvidia technology. The move is perceived as strategic as it will help Nvidia transition from selling individual chips to selling complete systems.

Nvidia’s shares have surged 243% over the past year, making it the third-most valuable company in the U.S. stock market, behind only Microsoft and Apple.

Nvidia’s latest flagship is poised to shape its ability to uphold its leading position amid competition from other AI chip makers like Intel, AMD, and IBM. With Nvidia’s stronghold in the data center AI chip market, where it secured approximately 80% of the share last year, these announcements carry significant weight in determining its ongoing dominance.