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Nvidia's Blackwell Chips Propel Stock to New Highs as AI Demand Soars

AInvestTuesday, Oct 15, 2024 4:00 am ET
1min read

Nvidia's stock price recently reached new heights, closing at $138.07 on October 14, marking an impressive milestone following the launch of its Blackwell chips. This propelled Nvidia’s market valuation close to $3.39 trillion, trailing only behind Apple’s $3.52 trillion.

The excitement stems from the full-scale production of Blackwell chips, as confirmed by Nvidia's CEO. The market's prior uncertainties around potential production delays have eased, leading to a significant stock increase of over 52% since its August low. As a leader in AI chip technology, Nvidia’s advancements are driving industry-wide growth and capturing increasing market share.

During the 2024 GPU Technology Conference, Nvidia introduced the groundbreaking Blackwell architecture, enhanced with six revolutionary technologies. These innovations improve cost efficiency and energy consumption by 25-fold, offering robust solutions for large language models.

The GB200 GPU, key in this development, comprises 208 billion transistors, achieving fast communication speeds. Despite initial concerns of potential production delays, Nvidia confirmed that Blackwell chips are now in full production, anticipating increased Q4 production and delivery, highlighting substantial demand.

Moreover, digital giants are beginning to adopt these advancements, with Microsoft's Azure cloud services already integrating GB200-based servers, positioning them as the first cloud provider utilizing the Blackwell system.

In efforts to emphasize its commitment to the global market, Nvidia has initiated a global "AI Summit" tour, highlighting the growing demand for AI chips. Bob Pette, Nvidia’s VP, presented in Washington, detailing future AI applications across various industries and predicting AI will have a $20 trillion impact globally.

Amidst this innovation, Nvidia addresses concerns such as computational power constraints and energy consumption, with Blackwell chips featuring significant energy efficiency improvements.

In summary, Nvidia's ongoing advancements underscore its pivotal role in the AI chip market, continuing to shape the technological landscape and draw attention from tech giants eager to capitalize on these breakthroughs.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.