Nvidia’s (NVDA) stock fell 2.4% Tuesday after CEO Jensen Huang addressed concerns about the AI sector. He also reaffirmed the company’s position as a leader in chipmaking.
Huang, speaking at Nvidia’s annual software developer conference in San Francisco, defended Nvidia’s leadership in AI processors, as competition intensifies. This is especially true from China’s DeepSeek which launched a high-performance bot in January.
Huang said that AI expansions to building reasoning models and AI agent will require much greater computational needs.
He said, “This is where almost everyone got it wrong last year.”
Huang reiterated a point that he has made in the past months: “The amount we need to compute is easily 100 times what we thought we would need at this time last season.”
Investors are concerned that major AI players, such as Microsoft (MSFT) or Amazon (AMZN), may be spending too much money on Nvidia’s high-end AI chips. This could dampen future demand.
Before Huang’s keynote address, shares of Nvidia had already fallen.
Huang announced the Blackwell Ultra GPU at the event. He said that the next generation of the company’s AI chips will be available by the second half of the year.
Investors’ sentiment was not boosted by the announcement, which reaffirmed Nvidia’s commitment to innovation.
Nvidia stock has dropped around 14% over the past year, underperforming Nasdaq Composite Index IXIC which has fallen 9% during the same period.
According to LSEG data, the stock is currently trading below its five-year forward average price-to-earnings ratio of 40.
Vera Rubin unveils Nvidia Blackwell Ultra
Nvidia announced its latest AI chip family, Blackwell Ultra, and Vera Rubin at its annual GTC Conference.
The new processors are designed to power the next generation of artificial intelligence models, as well as data center computing.
Blackwell Ultra is an upgraded version of Blackwell chips that were recently launched. It will begin shipping in the second quarter of 2025.
Vera Rubin is Nvidia’s next generation GPU and it will be released in 2026.
The company also announced Vera Rubin Ultra – an enhanced variant due in 2027 that will deliver 14 times more computing power than the original Blackwell Series.
“Once a Year–like a clock ticks,” said Nvidia’s CEO Jensen Huang in highlighting the company’s annual chip release cycle.
Nvidia’s AI chip is essential for training and deploying AI models.
Cloud giants like Microsoft, Google and Amazon continue to invest heavily in Nvidia’s infrastructure.
Analysts predict that the Vera Rubin Series could generate revenue of nearly $40 billion during its first year. This figure will rise to more than $95 billion in its second year.
Nvidia has seen its revenue more than sixfold increase since the launch of OpenAI’s ChatGPT in 2022. This reinforces Nvidia’s dominance in AI chips.
GM and Nvidia team up to develop AI-driven cars
General Motors (GM), Nvidia, and other companies announced a strategic partnership to integrate artificial intelligence in GM’s next generation vehicles, advanced driver assistance systems, and manufacturing facilities.
The partnership will allow GM to use Nvidia technology in multiple areas including in-vehicle system, factory planning and robotics.
“The era for physical AI is now, and together with GM we’re transforming the transportation industry, from vehicles to factories where they are made,” said Nvidia’s CEO Jensen Huang.
The collaboration builds on GM’s current use of Nvidia artificial intelligence technology.
GM used Nvidia graphics processor units (GPUs), to train AI models in simulations and for vehicle validation.
This new partnership will allow the automaker to expand its use of Nvidia’s AI capabilities, including in-vehicle computer systems and factory design.
What does this deal mean for the companies involved? Analysts weigh in
Neither GM or Nvidia disclosed financial terms of the agreement.
The collaboration is a sign of Nvidia’s increased efforts to expand in the automotive industry, which was historically a small part its overall business.
Nvidia’s System-on-a-Chip hardware is used by more than 20 global automakers including Mercedes-Benz and Volvo. Volkswagen, BYD and Volkswagen also use it in their smart vehicle platforms.
The move by GM is a sign of its commitment to modernizing its manufacturing and vehicle technologies in the face of increasing competition from traditional automakers as well as emerging electric vehicle (EV), startups.
The company was under pressure to accelerate the transition towards AI-driven automation systems and autonomous driving systems.
The partnership comes at a moment of increasing competition from China, and evolving regulatory challenges including potential tariffs.
Both companies’ stock prices have declined in 2025. GM’s shares are down around 8 percent, and Nvidia is down 12%.
Analysts view the partnership, despite these headwinds as a strategic decision for both companies.
The integration of Nvidia AI into GM’s autonomous and connected vehicles could strengthen GM’s position in the market.
The deal is a major expansion for Nvidia beyond its core business in data centers and GPUs. It allows it to gain a stronger foothold in automotive.
This post Nvidia GTC Jensen Huang addresses AI concerns; Blackwell Ultra and Vera Rubin are unveiled but stock drops could be modified as updates unfold
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