Tuesday saw a 2% decline in the stock price of Nvidia as investors awaited more details about the company’s upcoming artificial intelligence chip, which is anticipated to further establish its dominant position in the industry. The value of Nvidia more than tripled in the preceding year.
Share prices fell to $865 for the world’s third-most valuable company. Some analysts say investors had already considered the B200 Blackwell chip, which the company claims is 30 times faster at some activities.
Nvidia CEO Jensen Huang estimated the Blackwell chip’s cost at $30,000–$40,000.
The business, which owns 80% of the AI chip industry, will brief financial analysts on Monday at 11:30 a.m. ET (1530 GMT).
David Wagner, portfolio manager at Aptus Capital Advisors, says “the Blackwell technology shows a significant performance uplift compared to Hopper (the current flagship chip), but it’s always hard to live up to the hype.” Wagner added that investors were still absorbing the roughly 80% year-to-date price surge.
Just seven sessions ago, Nvidia shares hit a record high of $974.
On Monday, Nvidia introduced the Blackwell chip, which integrates two silicon squares the size of the company’s previous offering, and a new suite of software tools to help developers sell artificial intelligence models to businesses using its technology.
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We expect Amazon.com, Microsoft, OpenAI, Meta Platforms, Amazon, and Tesla to use Nvidia’s new flagship CPU.
The company now sells systems instead of chips.
Mornigstar analysts anticipate Nvidia’s data centre revenue for 2026 and 2028 and that its hardware will remain the “best-of-breed” in AI.
“We remain impressed with Nvidia’s ability to elbow into additional hardware, software, and networking products and platforms,” he said.
Nvidia’s software push shows its efforts to make its technology more versatile for organisations implementing generative AI. Nvidia’s GPUs train large-language models like Google’s Gemini.
Inference chips, which help AI models answer questions and generate visuals when asked, will eventually outsell training chips, which Nvidia now owns, according to several analysts.
Many analysts think Nvidia’s superiority will continue, but its market share is expected to decrease by several percentage points this year as competitors debut new devices and its biggest clients create their own chips.
Although Blackwell is a “monster in the chip world,” Kathleen Brooks, research director at Polish broker XTB, said it may take time to see if it can boost Nvidia’s finances like the current chip does.
Other successful chipmakers saw their stock drop; the Philadelphia chip index fell 2.4%.
Nvidia’s forward price-to-earnings ratio was 34.6, lower than its three-year average of 42.
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