(Bloomberg) — Shares of Nvidia Corp. fell on Tuesday after Chief Executive Officer Jensen Huang’s sweeping product unveiling failed to propel the artificial intelligence chipmaker to new heights.
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Shares fell 6.2% to $140.14 in New York, their biggest one-day drop in four months.While Nvidia’s recent announcements were optimistic about the company’s long-term prospects, the near-term results were not as positive as some investors were looking for. “Today’s announcements from Nvidia are significant, but long-term,” Stifel Financial Corp. said in a report.
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Huang took the stage to a packed arena in Las Vegas to kick off the CES trade show on Monday, offering a vision of how AI will permeate the entire economy humanoid robots, 10 million automated factories and 1.5 billion self-driving cars and trucks.
Interest in Nvidia’s products and Huang’s predictions has grown as companies rush to deploy new AI computing hardware.The CEO gave his audience of hundreds more than 90 minutes of presentations on Nvidia’s products and strategy, including ties to Toyota Motor Corp. and MediaTek Inc., which sent their shares up more than 3%.
Before Tuesday’s retreat, Nvidia shares had more than tripled in the past 12 months.Asian suppliers, including Taiwan Semiconductor Manufacturing Co. and Hon Hai Precision Industry Co., were also bullish on Nvidia’s prospects.
CFO Colette Kress said at a separate event that the AI ​​transition will continue to drive growth over the next 10 years. which coincided with CES. “We still have a lot of great opportunities for us in the future.”
During Huang’s presentation on Monday, he also broke the news to his traditional audience, gamers. Nvidia is starting to update its GeForce GPUs, which are cut down to graphics processing units built with the same Blackwell design that the company uses in its AI accelerators, he said. is Huang.
The new GeForce 50 series cards will take advantage of Blackwell’s capabilities to create an even more realistic experience for PC gamers, the company said. to predict what the next shot should be.
“GeForce brought AI to the masses, and now AI is coming home to GeForce,” Huang said during the presentation.
The top-of-the-line RTX 5090 model will be available later this month for $1,999, with less powerful cards to follow.The $549 RTX 5070 will arrive in February with better performance than the top-of-the-line RTX 4090, Nvidia said. the
Back in 2022, games were Nvidia’s biggest source of sales. Now, the chipmaker’s data center business is set to hit $100 billion this year as the company’s accelerator chips are valued by the world’s biggest hardware and software companies is providing a larger segment of businesses and government agencies, which will help diversify Nvidia’s revenue.
Huang announced that Toyota, the world’s largest vehicle maker, is now a customer of Nvidia’s self-driving AI products and will use its Drive chips and software.Toyota shares rose in Tokyo after the announcement.
Expanding artificial intelligence into more of the physical world will transform the $50 trillion industry, Nvidia said Nvidia Cosmos to help make robots smarter and produce fully autonomous cars, Huang said.
Cosmos technology is able to generate video from inputs such as text. That video then becomes the basis of virtual learning, helping to reduce reliance on expensive and time-consuming real-world experiments. The generated video can be searched and refined so that important but rare events, e.g , the meeting of the car with the emergency vehicle, can be repeatedly tested.
Nvidia is also working with Uber Technologies Inc. to develop the self-driving technology.The millions of rides that Uber makes daily will provide a database for training intelligent models.
Mass-market automakers are moving to use a single computer and operating system for their entire model line, rather than segmenting systems by vehicle class, Nvidia said.That shift will set the stage for broader use of the chip designer’s offerings, the company believes. To speed this up, Nvidia has certified its products by government transportation safety organizations.
Nvidia also now offers a desktop computer called Project Digits, a small $3,000 device with a single Grace Blackwell Superchip that works with large memory and fast connectivity is to provide developers with hardware capable of handling very large AI models that current laptops would struggle to handle.
The new machines, developed in collaboration with Taiwan’s MediaTek, will run on a version of the Linux operating system and are not intended for everyday use. Instead, they are meant to help AI developers work locally when connecting to the cloud or using conventional computers is not practical or possible.
Nvidia chose MediaTek to help it build the core chip for Digits because of the company’s expertise in making low-power semiconductors.The Taiwanese company will also offer products containing the technology to other customers, Huang said.
Asked if Project Digits signals that Nvidia wants to enter the PC market more broadly, Huang said the machine is aimed at AI developers and students, but he also implied that Nvidia is bigger has an interest in the field.
“Obviously, we have plans,” he said at a briefing with financial analysts. “I’ll have to wait to tell you about that.”
– Assisted by Ed Ludlow.
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