Nvidia, once the most valuable company in the world with a market capitalization of $3.34 trillion, has seen a significant drop of about $500 billion in value since then. Investors were hoping for insight at the annual meeting on how Nvidia plans to address this decline, but CEO Jensen Huang did not provide much new information. While Huang highlighted the company’s success, he did not offer specifics on how Nvidia will compete with rivals or maintain its top position in the market.
There is concern about the future of Nvidia’s dominance in the AI semiconductor market as other tech giants are developing their own alternatives to Nvidia’s graphics processing unit chips, including Google’s Arm-based CPU processor and Microsoft’s AI chips. Huang also did not provide a timeline for the release of Nvidia’s Next-generation AI chip, Blackwell, which he claims will be the company’s most successful product. The chip is expected to be twice as fast as its predecessor, but details on pricing and availability remain unknown.
Despite Huang’s positive outlook on Nvidia’s prospects and the company’s significant impact on the future of computing, shareholders were not reassured, leading to a more than 2% drop in Nvidia’s stock. The company serves millions of developers and businesses worldwide, but the question remains whether Nvidia can maintain its position as a top computer chip supplier and sustain its massive market capitalization. Nvidia declined to comment on the situation when contacted by Business Insider. Time will tell how Nvidia navigates the challenges ahead and whether it can remain at the forefront of the semiconductor industry.
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https://www.businessinsider.com/nvidia-failed-to-soothe-investor-concerns-at-shareholder-meeting-2024-6?amp