The shares of NVIDIA increased by 5.4% on Wall Street on Wednesday, after Super Micro Computer announced that its new AI data center systems are fully in production. These systems run on Nvidia’s latest Blackwell chips, which have to process AI processes considerably faster than their predecessor, the Hopper chip. The announcement removed worries from investors about possible delivery problems, which restored trust in Nvidia.
Blackwell chip ensures trust recovery
NVIDIA previously struggled with fear of bottlenecks in the supply chain, which could have delayed the rollout of the Blackwell chip. The confirmation that Super Micro Computer has the technology completely in production removed this uncertainty. Blackwell is seen as an important innovation that further strengthens Nvidia’s dominant position in the AI market. The Hopper chip, the predecessor of Blackwell, has already helped Nvidia to grow into one of the most valuable companies in the world. With the new generation of AI chips, the company hopes to maintain its lead in the market and to further accelerate growth.
The broad market had a positive trading day on Wednesday. The Dow-Jones index rose by 0.7% to 44,873.28 points, while the S&P 500 climbed by 0.4% to 6061.48 points. The Nasdaq also ended higher, although the increase was by 0.2% more modest. Not all technology shares benefited from optimism on the stock exchange. Alphabet, Google’s parent company, fell by 7.3% after it turned out that the turnover of his cloud division was lower than analysts had expected. The cloud branch is considered an important growth segment by many, especially now that companies are increasingly investing in AI-related technologies.
Workday and MicroSstratey attract attention
In addition to Nvidia, Workday also noticed, which saw its 6.3% share price rise after the announcement that it will delete 8.5% of its workforce to save costs. This means a loss of approximately 1750 jobs, a step that was received by investors as a necessary measure to improve profitability.
In the meantime, MicroSstratey fell by 3.3% after the company announced that it would change its name to Strategy, a decision that emphasizes the growing role of Bitcoin in his business strategy. The new logo now contains a ‘B’, which refers to the large quantities of Bitcoin that the company maintains as part of its cash reserves.
With the growing demand for AI technology and the successful rollout of the Blackwell chip, Nvidia seems to be well positioned to further expand its dominant market position. Investors will follow closely in the coming months whether the new chips will actually have the expected impact, especially now that competitors such as AMD and Intel are also increasingly focusing on the fast-growing AI market.
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Source: https://newsbit.nl/nvidia-stijgt-op-wall-street-na-succes-met-blackwell-chips/
