Nvidia Corporation (NVDA) shares dipped by almost 2% during trading on Tuesday 19 March 2024, following the launch of its new artificial intelligence chip.
Nvidia stock trips after launch of B200 Blackwell Chip
At the ring of the closing bell, the company’s stock was up about 1% but slipped again by 0.42% in after-hours trading.
Analysts believe waiting for more details about the chipmaker’s new B200 Blackwell microprocessor contributed to these marginal stock movements. Over the past year, Nvidia’s shares increased more than three times in value.
Jensen Huang, Nvidia’s founder and chief executive officer, told CNBC that the Blackwell chip would cost between $30,000 and $40,000. Some economists believe investors already considered related impacts during Tuesday’s trading. In the company’s press release, Huang said:
For three decades we’ve pursued accelerated computing, with the goal of enabling transformative breakthroughs like deep learning and AI. Generative AI is the defining technology of our time. Blackwell is the engine to power this new industrial revolution.
Based on Reuters data, this organisation dominates roughly 80% of the AI processor market. David Wagner, a portfolio manager at Aptus Capital Advisors, told this newsagent that:
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.
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Nvidia’s share price achieved an all-time high of $974 on 8 March 2024, and closed at $893.98 on 19 March. The company indicated it expects tech titans such as Alphabet Inc. (GOOG), Amazon.com, Inc. (AMZN), OpenAI, and Tesla, Inc. (TSLA) to adopt the Blackwell technology.
