Nvidia‘s stock experienced a slight downturn on Tuesday, shedding about 1.4% to land at $872, despite a remarkable year that saw its value more than triple.
This comes as the tech community eagerly anticipates further details on Nvidia’s new AI chip, the B200 Blackwell, which promises to significantly outperform its predecessors.
Analysts suggest the market might have already anticipated the chip’s unveiling, considering Nvidia’s shares have surged nearly 80% year-to-date, peaking at $974 a week before the dip.
David Wagner, a portfolio manager at Aptus Capital Advisors, commented on the situation, stating, “The Blackwell technology shows a significant performance uplift compared to Hopper (the current flagship chip) but it’s always hard to live up to the hype.”
Nvidia’s announcement also included the introduction of a new suite of software tools designed to streamline the sale of AI models to businesses leveraging Nvidia’s technology, indicating a strategic pivot towards selling complete systems rather than individual chips.
Industry giants like Microsoft, OpenAI, and Tesla are among the companies collaborating with Nvidia, which continues to dominate the AI chip market with an 80% share.
Despite forecasts suggesting a slight decrease in market share due to emerging competition and customers developing their own chips, Nvidia’s supremacy appears unchallenged.
Analysts from Morningstar have adjusted their revenue projections for Nvidia’s data-center business upwards for 2026 and 2028, citing the company’s continued innovation in hardware, software, and networking products as a key factor.
The shift towards inference chips, which are used to process queries and generate responses in AI applications, is predicted to create a larger market than the existing one for training chips, where Nvidia has established a stronghold.
The company is slated to reveal more details on the B200 Blackwell’s pricing during its financial analyst presentation.
Kathleen Brooks, the research director at Polish broker XTB, referred to the Blackwell chip as a “monster in the chip world,” though she noted it might take time to evaluate its impact on Nvidia’s financial performance.
Meanwhile, the broader chipmaker sector also saw a decline, with the Philadelphia chip index dropping by about 1.3%.
Nvidia’s current forward price-to-earnings ratio stands at 34.6, below its three-year average of 42, suggesting a more cautious valuation amidst its ambitious technological advancements.