NVIDIA’s stock price surged by 4% to hit a three-month high after the company promoted its next-generation Blackwell chips, emphasizing their energy efficiency at the "AI Summit DC." Company executives projected that AI could have an impact of up to $20 trillion across all industries utilizing the technology. They also highlighted NVIDIA’s AI software services and various software platforms. Analysts believe that by showcasing software, NVIDIA aims to prove that it is more than just a chip company—software not only retains customers but also provides a source of recurring revenue beyond hardware sales. Since reaching its low point on September 6, NVIDIA’s stock has rebounded by 28%, surpassing Microsoft to become the world's second-largest company by market capitalization.

At the summit, NVIDIA revealed that the Blackwell chips will start shipping to customers in Q4 this year and are built with outstanding energy efficiency. The Blackwell platform is designed with energy efficiency in mind, and OpenAI’s GPT-4 software developed on it has significantly reduced power requirements compared to a decade ago. NVIDIA emphasized the importance of its software services, aiming to attract developers and boost recurring revenue while navigating competition in the hardware space and the challenge of customers developing their own chips. The company also showcased its accelerated computing platforms in AI, sensor processing, and multiple AI software platforms. Its partners include AT&T, Deloitte, Quantiphi, and the U.S. National Cancer Institute. Additionally, Google announced that NVIDIA's NIM is now available on the Google Kubernetes Engine, and TSMC is using NVIDIA's Culitho computational lithography platform. A Morgan Stanley report expressed optimism about the revenue potential of the Blackwell chips, predicting a production volume of 250,000 to 300,000 units in Q4, with plans to triple production early next year. NVIDIA expects to ship billions of dollars worth of Blackwell chips in the fourth fiscal quarter, with production increases continuing into fiscal year 2026.

Moreover, NVIDIA announced collaborations with Carnegie Mellon University and the University of Pittsburgh to establish two new AI technology community centers. The “NVIDIA Robotics, Autonomy, and AI Center” at Carnegie Mellon will focus on robotics and autonomy, while the “AI and Intelligent Systems Center” at the University of Pittsburgh will concentrate on AI for health sciences.

NVIDIA also stated that the development of OpenAI’s GPT-4 software on the Blackwell chips, which were made available to customers this year, requires only 3 GW of power, compared to the 5,500 GW required for similar processes a decade ago. Bob Pette, NVIDIA’s Vice President, mentioned during a pre-summit press conference: “Our Blackwell platform is essentially built with energy efficiency in mind.”

The company further highlighted advancements in its software portfolio, including the creation of a tool that allows businesses to quickly deploy custom AI services called “Agent Blueprint.” Agents are software applications that perform real-world tasks, such as handling customer requests, assisting in device design, or accelerating drug development.

NVIDIA's stock continued to rise on Tuesday, reaching a three-month high with a 4.5% increase at its peak. After a 239% gain in 2023, the stock has more than doubled this year.

Morgan Stanley's latest report remains optimistic about the revenue potential of Blackwell, NVIDIA’s most advanced chip, with expectations for increased production starting in Q4 and continuing through 2026. The report suggested that Blackwell's output could surpass that of the existing Hopper chips as early as the beginning of next year.

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