Updated March 19th, 2024 at 17:51 IST

Nvidia shares decline ahead of insights into its latest AI chip

The slight downturn in Nvidia's stock also impacted other chipmakers, with Super Micro Computer witnessing a 9 per cent drop.

Reported by: Business Desk
Nvidia | Image:Pexels
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Nvidia shares decline: Nvidia shares declined in premarket trading on Tuesday, following a surge in its stock value over the past year. Investors eagerly awaited further insights into the company's latest AI chip, set to solidify its leadership position in the industry.

The world's third most valuable firm observed a decline of approximately 0.5 per cent, prompting some analysts to suggest that investors had already factored in initial details about the B200 "Blackwell" chip. Nvidia claims this chip to be 30 times faster at certain tasks compared to its predecessor. Yet, investors were keen on additional specifics.

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According to Kathleen Brooks, research director at Polish broker XTB, "Blackwell always had a high bar for investors." She highlighted the need for time to evaluate its potential impact on Nvidia's bottom line.

Accompanying the Blackwell chip announcement, Nvidia unveiled a new suite of software tools intended to facilitate the sale of artificial intelligence models to businesses utilising Nvidia's technology.

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Expected to be utilised by industry giants such as Amazon, Google, Meta Platforms, Microsoft, OpenAI, and Tesla, the Blackwell chip represents a significant advancement in Nvidia's offerings.

Analysts from Bernstein expressed confidence in the strength of Blackwell and applauded Nvidia's broader focus on software and hardware ecosystems, which remains unmatched in the industry.

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The software initiative underscores Nvidia's efforts to streamline the integration of generative AI into various businesses, especially for applications requiring large-language model training.

Despite facing increased competition and the emergence of in-house chip developments from major clients, Nvidia's market dominance is projected to remain unchallenged. The firm, commanding an 80 per cent share of the AI chip market, is set to provide further details on pricing during its presentation for financial analysts later in the day.

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The slight downturn in Nvidia's stock also impacted other chipmakers, with Super Micro Computer witnessing a 9 per cent drop after launching a stock offering, while Advanced Micro Devices and Marvell Technology experienced declines of approximately 3% each.

(With Reuters inputs)
 

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Published March 19th, 2024 at 17:51 IST