Nvidia reveals highly anticipated Blackwell chip lineup at GTC, but stock dips
morningstar.comMar 18
Nvidia Unveils 'Superchips' to Power AI
The Facts
Nvidia, a top global computer chip manufacturing company for artificial intelligence (AI) technology, announced its newest series of graphics processing unit (GPU) chips.
The new chips, named Blackwell chips after the scholar David Blackwell, consist of 208B transistors, requiring more powerful production techniques, and have the ability to link to other chips.
The Spin
Narrative A
Nvidia is on a roll and is only growing stronger. Despite its stock taking a dip following this announcement — likely due to a quick sell-the-news reaction — some estimates project the company to reach $1.2K per share. The optimistic outlook is reasonable given that its latest line of hardware is 30 times as powerful as previous generations, and the expectation of companies including Amazon, Apple, Google, and Meta to use these new chips.
Narrative B
Since the emergence of the AI craze, governments across the world have rightly voiced concerns over software. However, the only way generative AI software can be advanced is if the hardware that powers it advances. Leading AI companies like Amazon, Microsft, and Google are also the only ones able to purchase these chips, so there should be laws in place to discourage monopolization and allow smaller innovators a chance to thrive in the market.
Nerd narrative
There's a 50% chance that a humanoid robot will be created that the general public judges as indistinguishable from humans by September 2049, according to the Metaculus prediction community.