Analysts Call Nvidia's Blackwell Platform the 'Most Ambitious Project in Silicon Valley'

Nvidia (NVDA) shares rebounded from early losses to finish 1% higher Tuesday, a day after the company announced what analysts called the "most ambitious project in Silicon Valley."

Nvidia founder and CEO Jensen Huang unveiled the Blackwell platform and the company released a flurry of artificial intelligence (AI) tech announcements Monday at Nvidia's annual GPU Technology Conference (GTC), with analysts dubbing the event the "AI Woodstock." The Blackwell GPU is the "world's most powerful chip," and will power a "new era of computing," the company said.

Huang "ushered in the new Industrial Revolution of Gen AI as an industry focused on accelerated computing built on the backbone of the new Blackwell GPU platform," Rosenblatt analysts said, adding that Blackwell is "the most ambitious project in Silicon Valley."

Nvidia didn't provide pricing or a specific launch date for the new products as some analysts anticipated but did say Blackwell would be available through its partners, including Amazon (AMZN), Microsoft (MSFT), and Alphabet's (GOOGL) Google, later this year.

There is already high demand for the new products, the company said. Rosenblatt analysts indicated that they "believe Blackwell is sold out well into 2025 amid improving Hopper supply."

The Blackwell GPU "offers an easy upgrade path," for customers using its predecessor, which Wedbush analysts said "in of itself could create significant demand for NVDA's next generation of parts."

Nvidia has established itself as an early leader in the AI boom and analysts indicated that the new products could reinforce this dominance. "NVDA continues to dominate the AI value chain with its full-stack turnkey (hardware, software, systems, services, developers) model," Bank of America analysts said.

CFRA analysts, who raised their price target for the stock to $700 from $600 following the announcements, said "NVDA will power the forthcoming Industrial AI revolution as everything moves to robotics, creating the need for AI factories/giant virtual warehouses that will leverage the omniverse/digital twins."

Nvidia "continues to lift the performance bar, a result that should help sustain its leadership position in the AI accelerator market," Bank of America analysts said, adding that the company's "continued efforts with systems level architecture could be difficult for competitors to mirror."

As Nvidia has benefitted from the AI boom, some of the companies within its AI ecosystem have also shared in these gains.

"The new products are likely to trigger an upgrade cycle for key customers and benefit supply chain companies exposed to GPU servers, liquid cooling, and memory products," Bank of America analysts said.

Blackwell could help Nvidia to "continue to support near-term momentum for AI-related stocks," UBS analysts said, adding that the firm positively views "the broader AI trend."

UBS analysts did suggest that "investors with excessive exposure to big tech, however, should consider diversifying into next AI leaders such as beneficiaries of AI custom chips, AI edge computing, and semiconductor capital equipment."

Nvidia shares gained 1% to $893.98 Tuesday. They have more than tripled in value over the past year.