TLDR
- Nvidia shares fell over 3% despite unveiling next-generation AI chips at the annual GTC event
- CEO Jensen Huang announced Blackwell Ultra chips set to ship in second half of 2025, promising 50x revenue generation compared to previous models
- Nvidia stock has declined approximately 15% this year, pressured by market uncertainties, Trump’s tariffs, and competition from Chinese firm DeepSeek
- The company revealed plans for Vera Rubin, a next-generation system combining CPU and GPU capabilities, expected to launch in second half of 2026
- Major cloud providers including Amazon, Microsoft, Alphabet, and Oracle have collectively purchased 3.6 million Blackwell AI chips so far in 2025
Nvidia’s stock price dropped 3.4% on Tuesday despite CEO Jensen Huang’s unveiling of an ambitious roadmap for new AI chips at the company’s annual GPU Technology Conference (GTC) in San Jose, California.
The decline came as part of a broader market selloff affecting technology stocks. Investors continued to show caution amid economic uncertainties linked to President Trump’s tariffs.
Nvidia shares have fallen approximately 15% year-to-date. This decline follows a strong start to 2025 when the stock hit a record close above $149 in early January.
The company’s recent woes include heightened competition from Chinese firm DeepSeek, which introduced a lower-cost AI model. This development contributed to a single-day market cap loss of nearly $600 billion for Nvidia earlier this year.
Nvidia’s most recent quarterly earnings report also failed to impress investors. Sales growth showed signs of slowing, adding to pressure on the stock.
At the GTC event, Huang confirmed the upcoming launch of Blackwell Ultra chips. These next-generation AI processors are scheduled to begin shipping in the second half of 2025.
According to Huang, the upgraded Blackwell Ultra can process more tasks in the same timeframe as its predecessor. This capability would allow cloud providers to generate 50 times the revenue compared to the previous generation Hopper GPUs.
“We designed Blackwell Ultra for this moment — it’s a single versatile platform that can easily and efficiently do pretraining, post-training, and reasoning AI inference,” Huang stated during his keynote address.
The company’s current-generation Blackwell GPUs achieved full-scale production during Nvidia’s fourth quarter. They generated $11 billion in revenue despite earlier reports of delays, overheating, and glitches.
“Blackwell is in full production, and the ramp is incredible,” Huang said. “Customer demand is incredible.”
Another major announcement was Vera Rubin, a next-generation system combining CPU and GPU capabilities. This system is expected to launch in the second half of 2026.
Named after the astronomer who helped discover dark matter, Vera Rubin is designed as a custom-built supercomputing system. It will be capable of managing 50 petaflops during inference, more than double the capacity of current Blackwell chips.
Huang also revealed plans for Vera Rubin Ultra, scheduled for release in the second half of 2027. “We have an annual rhythm of roadmaps that has been laid out for you,” he explained during his presentation.
Nvidia additionally announced the GB300 superchip, which combines two Blackwell Ultras with one of its Grace CPUs (central processing units).
Several new partnerships
The company disclosed several partnerships at the conference. These include collaborations with Walt Disney and Google DeepMind on a project called Isaac GR00T N1, aimed at accelerating robotics development.
Nvidia has also partnered with General Motors for next-generation automotive AI. The chip maker will work with T-Mobile US and Cisco Systems to develop AI-powered 6G network hardware.
Major customers of Nvidia include top cloud providers Amazon, Microsoft, Alphabet, and Oracle. According to Huang, these companies have collectively purchased 3.6 million Blackwell AI chips so far in 2025.
Bloomberg reported that hyperscalers, including Microsoft, Amazon, and Meta Platforms, are expected to spend $371 billion on AI infrastructure in 2025. This investment is projected to rise to $525 billion by 2032.
Huang highlighted the recent evolution in artificial intelligence technology. “In the last 2 to 3 years, a major breakthrough happened, a fundamental advance in artificial intelligence happened. We call it agentic AI,” he stated, adding that “It can reason about how to answer or how to solve a problem.”
Analysts remain divided
Despite the positive developments announced at GTC, market analysts remain divided on Nvidia’s short-term outlook. Wedbush analyst Dan Ives had hoped the conference would serve as “a wake-up moment for the tech bulls.”
Truist analyst Will Stein maintained a Buy rating with a $205 price target on Nvidia stock. However, he acknowledged concerns about potential overcapacity in AI computing.
“The biggest investor concern is that NVDA’s customers are deploying too much AI compute capacity today, and that customers will subsequently enter a period of digestion, causing a cyclical downturn,” Stein noted.
Nevertheless, some analysts see potential opportunity in the recent price decline. Josh Gilbert, a market analyst at eToro Australia, suggested: “Investors may see that as an opportunity, particularly with its valuation remaining attractive on the backdrop of ongoing growth.”
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
