S Poddar
Nvidia’s shares took a significant hit, even after the firm launched its next-generation artificial intelligence (AI) chips at the San Jose, California-based GPU Technology Conference (GTC). Although historic, the reveal was not sufficient to withstand the general risk-averse nature of the market, and the company’s shares fell by more than 3% after the announcement. This decline is in line with the prevailing trend of investors shying away from tech stocks in a period of economic uncertainty, compounded by fears over Trump’s tariffs. Nvidia was not the only one to experience these headwinds, with other top members of the “Magnificent Seven” group experiencing declines in their stocks.
Even though it had recently launched its new AI chips, Nvidia’s shares have fallen 15% so far this year in 2025, propelled by both international market nervousness as well as the development of a lower-cost AI model from China-based DeepSeek. Fuel to the flames, Nvidia’s latest quarterly earnings report indicated that sales growth slowed, adding to investor caution. However, Josh Gilbert, an eToro Australia market analyst, noted that certain investors may view this decline as a chance, given the valuation of the company is still appealing despite the reduced growth prospects. The GTC, which takes place every year, is a significant event for Nvidia, as it presents its most recent developments and attempts to assure key investors regarding the future of its products.
Nvidia released some of its key updates in the product line this year, which are essential to retaining its hold in the AI chip market. The biggest news this year was the release of the Blackwell Ultra chip, which will be used to replace the existing Blackwell supercomputing chip. Expected to begin shipments in the second half of 2025, the Blackwell Ultra promises to deliver superior performance, handling more tasks in the same timeframe as its predecessor. Nvidia’s CEO, Jensen Huang, explained that this chip was designed to meet the current demand for powerful, versatile AI platforms capable of handling everything from pretraining to post-training and AI inference. Besides Blackwell Ultra, Nvidia also announced Vera Rubin, a new-generation system that fuses CPU and GPU processing. The platform will arrive late in 2026 and extend the limits of AI computing power, processing 50 petaflops when handling inference tasks. This would be more than double the current Blackwell chips’ capabilities, another step in Nvidia’s effort to dominate the AI hardware market.
Another significant news at the GTC was Nvidia’s revelation of a number of significant partnerships that would push AI and robotics forward.
Among them was one with Walt Disney and Google DeepMind on Isaac GR00T N1, a project meant to speed up robotics development. Nvidia also made announcements of collaborations with General Motors for future-generation automotive AI, as well as collaborations with T-Mobile US and Cisco Systems to create AI-based hardware for the 6G network. These partnership arrangements underscore Nvidia’s ongoing focus on pushing the boundaries of AI in various industries. Nvidia’s main clients are still the world’s largest cloud providers, including Amazon, Microsoft, Alphabet, and Oracle, who have all invested heavily in the firm’s products.
These hyperscalers have purchased 3.6 million Blackwell AI chips in 2025 alone, combined, according to Huang. Overall, Bloomberg stated that firms such as Microsoft, Amazon, and Meta Platforms will spend a whopping $371 billion (€340 billion) on AI infrastructure in 2025, that number forecast to grow to $525 billion (€480 billion) by 2032. The enormous splurge mirrors the increasing need for AI features and the facilities to enable it. Moving forward, specialists believe the investments made on AI will progressively center around more processing capacity as well as improved inference skills and less on designing completely novel AI models.
To a great extent, the breakthroughs within DeepSeek’s generative AI model have served as an industry pull, stimulating interest. As Nvidia keeps developing its next-gen chips, being ahead of such competitors as DeepSeek will be essential to retain its leadership status in the worldwide AI market. During his address at the GTC, CEO Jensen Huang underscored a major breakthrough in AI development over the past few years, calling it “agentic AI.” This advancement, according to Huang, represents a fundamental shift in AI’s capabilities, allowing it to reason and make decisions autonomously about how to answer or solve problems.
As AI continues to advance, Nvidia is leading the way in these technological developments, with the goal of delivering the processing capabilities and infrastructure that will define the future of industries from robotics to autonomous vehicles. While Nvidia’s shares may have fallen in the aftermath of its announcements, the company’s long-term outlook remains strong based on its strategic alliances, advanced technology, and sustained leadership in the AI field. While there may be short-term issues, Nvidia is setting itself up to be a pivotal participant in the current AI revolution, with opportunities for dramatic expansion in the coming years.
