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Nvidia (NVDA) unveiled its newest product lineup at its developer's conference on Monday. The new platform is called Blackwell and Nvidia says tech companies like Oracle (ORCL) and Dell Technologies (DELL) are expected to be customers. Constellations Research Founder and Principal Analyst Ray Wang, joins Yahoo Finance Live to share his thoughts on Nvidia's conference.
According to Wang, investors learned "a lot of things" at the Nvidia event, with "the most important piece" being that Nvidia has grown past being "just a chip company." He emphasizes their focus "on the next layer," which is concentrating on software and expanding their chip products to a broader ecosystem of companies.
Wang highlights three crucial aspects of Nvidia's new Blackwell AI chip: backward compatibility, a "Lego-type architecture," and the fact that the Blackwell platform "achieves Jensen's law." He notes that these three factors set Nvidia up for success "when you think about what's required to take AI to the next level."
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Wang also acknowledges that among other chipmakers and competitors, Nvidia possesses "some of the most advanced chipmaking technology," raising the question of whether "other chip manufacturers can catch up."
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Angel Smith
Video Transcript
AKIKO FUJITA: Well, big news out of Nvidia's GTC conference in San Jose. CEO Jensen Huang unveiling the company's next-generation Blackwell AI chip, as well as new partnerships with software giants, and news it is bringing its Omniverse Enterprise Technology to Apple's Vision Pro headset. Joining us now on all this news, someone who attended the keynote. There you go.
You got that selfie, Ray. Ray Wang is Constellation Research founder and principal analyst. Always got to get that selfie, Ray. You know, look, this is a stock, when we're talking about Nvidia, that is up about 75% year-to-date. We're seeing it down today about 2%. Is that just a matter of a little profit-taking on the back or sell-the-news situation?
RAY WANG: Akiko, you're definitely right. They are taking some profit-taking, some money off the table. I think a lot of the news was being hyped up all the way into the conference. And I think that's where the stock price was there.
But I think we learned a lot of things at the conference. And I think the most important piece is that Nvidia is no longer just a chip company. If you look at all their extensions, they're focused on the next layer, which is really getting that chip extended out into the ecosystem, and then, of course, focusing on software, which is really important for them going forward.