Nvidia ticks lower as investors look out for details on new AI chip

investing.com:

(Reuters) -Nvidia shares dipped in premarket trading on Tuesday after having more than tripled in value in the past year, as investors awaited more details on the company's latest AI chip that is expected to further cement its lead in the industry.

Shares of the world's third most-valuable firm dropped about 0.5%, with some analysts saying investors had already factored in the first look of the B200 «Blackwell» chip, which the company claims is 30 times faster at some tasks than its predecessor, and were looking out for more details.

«Blackwell always had a high bar for investors,» said Kathleen Brooks, research director at Polish broker XTB.

«It could take a bit of time to (ascertain) if it can deliver for Nvidia (NASDAQ:NVDA)'s bottom line in the way the current GPU does.»

Along with the Blackwell chip, which binds together two squares of silicon the size of the company's previous offering, the company detailed a new set of software tools on Monday, to help developers sell artificial intelligence models more easily to firms that use Nvidia's technology.

The new flagship chip is expected to be used by Amazon.com (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL)'s Google, Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), OpenAI and Tesla (NASDAQ:TSLA).

Nvidia is also shifting from selling single chips to selling total systems.

«Blackwell appears likely to be strong, and the company's continued push not just on chips but on broader software and hardware ecosystems remains unmatched,» Bernstein analysts said in a note.

The software push shows how Nvidia, whose chips are mostly used for training large-language models like Google's Gemini, is trying to make its hardware easier to adapt for companies rushing to integrate