Nvidia’s stock fell over 3% despite the company unveiling its latest AI chip lineup at the annual GPU Technology Conference (GTC) in San Jose, California. The decline reflects broader investor caution amid economic uncertainties tied to Trump-era tariffs and a broader sell-off in technology stocks.
On Tuesday, Nvidia introduced its next-generation AI chips designed to drive innovations in robotics and self-driving vehicles. However, the announcement failed to impress investors, contributing to a 15% year-to-date decline in Nvidia’s stock. The drop comes as the company faces growing competition, particularly from China’s DeepSeek, which recently launched a more affordable AI model.
In addition, Nvidia’s latest earnings report showed signs of slowing sales growth. Market analyst Josh Gilbert from eToro Australia noted: “Investors may see that as an opportunity, particularly with its valuation remaining attractive on the backdrop of ongoing growth.”
The GTC conference serves as a crucial platform for Nvidia to secure continued investment from hyperscalers in its next-generation chips. A major highlight of the event was the introduction of the Blackwell Ultra chip, the successor to Nvidia’s Blackwell supercomputing series. Set to begin shipments in the latter half of 2025, the upgraded chip offers enhanced processing power, enabling cloud providers to generate 50 times the revenue compared to the previous Hopper GPUs.
“We designed Blackwell Ultra for this moment — it’s a single versatile platform that can easily and efficiently do pretraining, post-training, and reasoning AI inference,” said CEO Jensen Huang.
Nvidia also unveiled Vera Rubin, a cutting-edge system integrating CPU and GPU capabilities, expected to launch in late 2026. Named after the astronomer who contributed to the discovery of dark matter, Vera Rubin is engineered as a high-performance supercomputing system capable of handling 50 petaflops of inference—more than double the capacity of current Blackwell chips.
Despite the stock’s downturn, Nvidia remains at the forefront of AI chip development. However, as competition intensifies and investor sentiment shifts, the company faces mounting pressure to sustain its leadership in the evolving AI landscape.
