Nvidia stock went up by 1% after a dip when the company announced its latest generation of artificial intelligence chips, called Blackwell, and a new AI software platform.
“You can build chips to make software run better, but you can’t create a new market without software. What makes us unique is that we’re the only chip company I believe that will create its own market,” he said during the meeting on Tuesday.
After the dip, CEO Jensen Huang said in an analyst meeting that the company expects to increase its share of the $250 billion data center market.
Huang announced the new chips on Monday at Nvidia’s developer conference in San Jose, California, picking them as even more powerful processors than the current generation of Hopper graphics processing units.
“We had to invent some new technology to make it possible,” said Huang, holding up one of the new chips during an interview with CNBC’s “Squawk on the Street” on Tuesday. He estimated one chip could cost $30,000 to $40,000 and that the research and development budget for the processor totaled around $10 billion.
Wells Fargo analysts reacted to the chipmaker’s announcement and it seemed that they believed in the market.
“While NVDA once again highlighted its full-stack platform differentiation, we think some may have anticipated a bit more out of the Blackwell B200 launch,” the analysts wrote in a note.
Analysts at Goldman Sachs, retaining a buy rating of Nvidia stock, raised their price target to $1,000 from $875 on Tuesday. They were also glad for the Blackwell technology.
“Based on our recent industry conversations, we expect Blackwell to be the fastest ramping product in Nvidia’s history,” the analysts wrote in a note to investors.
“Nvidia has played (and will continue to play) an instrumental role in democratizing AI across many industry verticals.”
