Nvidia CEO Jensen Huang spoke with CNBC on Wednesday about the high demand for the tech giant’s upcoming Blackwell “superchip,” causing Nvidia shares to rise over 3% on Thursday. The stock reached a high of $124.26 before closing at $122.80, marking a 3.3% increase. Huang mentioned that companies like Microsoft, OpenAI, Meta, and other AI-related firms are showing interest in the Blackwell chip, with everyone wanting to be first to have it.
This recent jump in Nvidia’s shares continues a positive trend that began in early September when the company’s stock prices fell to $102.83 despite reporting record revenues. Blackwell-based products are set to be delivered to cloud service divisions at major companies like Oracle, Amazon, Microsoft, and Google later this year. This news has solidified Nvidia’s position as a leader in the artificial intelligence market.
Although Nvidia’s stock saw a significant increase, the overall market was down on Thursday, with the S&P 500 dropping as Nvidia’s rise wasn’t enough to pull the Nasdaq out of the red, closing down by 0.17%. Huang’s net worth is estimated to be $107 billion following the $3 billion increase in Nvidia’s shares, making him the twelfth richest person in the world.
The Grace Blackwell “superchip” is the next-generation product from Nvidia that can train AI models at high speeds while consuming a relatively low amount of energy. Priced between $30,000 and $40,000 per unit, the Blackwell chip is expected to be a game-changer in the industry. Nvidia’s continued partnerships with tech giants like Microsoft, Meta, Alphabet, and Amazon have contributed to its success in the AI market, with the company’s stock rising by over 147% since the beginning of the year.
Despite some brief drops in stock prices between July and September, Nvidia posted record revenues in the second quarter, generating $30 billion in sales and $16.5 billion in net income. The datacenter division, which houses many of Nvidia’s AI products, generated $26.3 billion in revenue during the quarter, marking a 154% year-over-year increase. These strong financial results have boosted investor confidence in Nvidia’s future growth and innovation.
In conclusion, Nvidia’s Blackwell “superchip” has generated significant excitement in the market, with high demand from major tech companies propelling Nvidia shares to new heights. Huang’s leadership and the company’s strategic partnerships have solidified Nvidia’s position as a key player in the AI market, with the Blackwell chip expected to further enhance its offerings. As Nvidia continues to innovate and expand its presence in the tech industry, investors remain optimistic about the company’s future growth and success.
