On the same day when NVIDIA surpassed Elon Musk’s AI company Tesla as the most traded on the market, its stocks faced the worst day since October 2023, that too, a day before the highly anticipated fourth-quarter results.
The American chip maker started this year with a 47% year-to-date gain, and the stock momentum came with gains in 2023 as well. But the tides have shifted, and the company lost $78 billion in market value.
On Tuesday morning, its stock price was $741 per share, with a market cap of $1.83 trillion (ahead of Amazon’s $1.75 trillion and Alphabet’s $1.78 trillion). Then Nvidia shares dipped as much as 8.6%, sending the market cap as low as $1.67 trillion before the company’s stock began to recover. Now, Alphabet and Amazon are once again ahead of of the chip maker.
CNBC’s Cramer reported, “Open your eyes, people,” Cramer said. “If you think that Nvidia’s quarter is one and done, you’re also thinking that AI is one and done.” The long-term supporter of the company is not wrong since Wall Street continues to bet big on AI, from which NVIDIA emerged as a winner.
All eyes are on the AI company with the rising demand for chips in the market and the upcoming GTC conference in San Jose, CA. The upcoming event in March is expected to bring updates on Blackwell, NVIDIA’s next-gen architecture. The company has already confirmed that their roadmap for 2024-25 features Blackwell, namely the B100 and GB200, which have been listed.
The teaser video gave a glimpse of generative AI’s features like the WPP/NVIDIA engine for digital advertising, the newly introduced Chat with RTX, an industrial metaverse powered by SyncTwin, AI art by Refik Anadol Studio, and OpenAI creating code for Blender animations.
Wall Street analysts are currently focused on the company’s demand outlook for its AI-enabled H100 GPU chips, which can sell for upwards of $40,000.
