NVIDIA Corp. (NVDA) stocks are decreasing as Amazon.com Inc. (AMZN) reportedly halted orders for the company’s latest superchip to wait for updated models. According to a report from the Financial Times, Amazon’s cloud computing division is pausing orders for NVIDIA’s advanced superchip in anticipation of more powerful models to be released later this year.
NVIDIA recently introduced its new chip architecture called Blackwell, which features 208 billion transistors and is expected to cost between $30,000 and $40,000. The Blackwell chip is said to be twice as powerful as the previous Grace Hopper chip. Amazon Web Services indicated that it has shifted its focus from Hopper superchips to NVIDIA’s latest Grace offering due to a small time window between the release of Hopper and Blackwell.
As NVIDIA prepares to release its quarterly earnings report, analysts are predicting that the company will continue to showcase the strong demand for its AI chips. However, some concerns have been raised about a potential slowdown in demand leading up to the launch of the Blackwell chip. Morgan Stanley analysts have also expressed anxiety about the situation on Wall Street.
NVIDIA is set to announce its first-quarter financial results after the market closes on Wednesday, with expectations of earnings of $5.59 per share and revenue of $24.645 million. The company’s leadership position in the industry is being challenged as industry giants support OpenAI’s new developer software, raising questions about its position in the market.
Despite the recent developments, NVIDIA shares have seen a significant increase of almost 90% this year. At the time of writing, the stock was down 1.13% to $937.07. Overall, the future performance of NVIDIA will largely depend on the reception of its Blackwell chip and the company’s ability to meet the evolving demands of the market.
In conclusion, NVIDIA is facing challenges as it navigates through a changing industry landscape with competitors introducing new technologies. The company’s response to these challenges, particularly with the upcoming release of the Blackwell chip, will play a crucial role in determining its future success in the market. Investors and analysts will be closely watching NVIDIA’s performance in the coming months to assess its resilience and competitiveness in the semiconductor industry.
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https://www.benzinga.com/news/24/05/38942186/nvidia-stock-drops-on-report-amazon-has-fully-transitioned-ai-chip-orders-the-details