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Shares of Wall Street's third most-valuable firm were down about
1%, with some analysts saying investors had already factored in
the launch and were looking out for more details.
"If the brand-new Blackwell chip didn't trigger a fresh rally,
it's because the arrival of a new and a more powerful chip was
already priced in," said Ipek Ozkardeskaya, senior analyst at
Swissquote Bank.
Shares of other chipmakers also fell. Super Micro Computer was
down 1.5%, while Advanced Micro Devices shed 1.7% and Marvell
Technology dropped 2.2%.
Along with the B200 "Blackwell" chip, the company detailed a new
set of software tools at its highly anticipated annual developer
conference on Monday, to help developers sell artificial
intelligence models more easily to firms that use Nvidia's
technology.
The flagship B100 chip, which binds together two squares of
silicon the size of the company's previous offering, is expected
to be used by Amazon.com, Alphabet's Google, Meta Platforms,
Microsoft, OpenAI and Tesla.
Nvidia is also shifting from selling single chips to selling
total systems.
"It will take time to evaluate the performance claims for
Blackwell, but... the company's ability to raise the bar this
much leaves them in a very strong position," analysts at Morgan
Stanley said in a note.
Many analysts expect Nvidia's market share to drop several
percentage points this year, as new products from competitors
are launched and the company's largest customers make their own
chips.
However, Nvidia's market dominance is expected to remain
unchallenged.
The firm, which has cornered 80% of the AI chip market, is
expected to provide more details on pricing as well as the
transition from H100 to B100 chips at its presentation for
financial analysts at 11:30 a.m. ET (1530 GMT) on Tuesday.
Nvidia's forward price-to-earnings ratio, a commonly used metric
to value stocks, stood at 34.6, below its three-year average of
42.
(Reporting by Medha Singh in Bengaluru; Editing by Pooja Desai)
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