Nvidia stock pops more than 3% after previewing next-gen Rubin AI ...

4 Jun 2024

Yahoo Finance

Nvidia stock pops more than 3 after previewing nextgen Rubin AI

Nvidia stock rose 3% Monday after the company announced its next-generation Rubin AI platform.

Nvidia stock (NVDA) ripped higher Monday after CEO Jensen Huang revealed details about the company's next AI chip platform during his keynote at the Computex conference in Taipei, Taiwan, on Sunday. The new platform, called Rubin, is the successor to Nvidia's Blackwell platform, which it unveiled in March.

While the CEO offered scant details on Rubin, he did mention that the platform will also include a new Arm-based CPU called Vera and will come to market in 2026. Huang also announced a more powerful version of its Blackwell platform called Blackwell Ultra coming in 2025, as well as an Ultra version of the Rubin platform for 2027.

Shares of the AI chip giant were up more than 3% in as of noon Monday.

Nvidia is the leader in AI chips thanks to early investments in the technology that have put it well ahead of its rivals in terms of hardware capabilities and software features. That's helped to make the company's offerings invaluable not only to cloud providers like Amazon, Google, and Microsoft, but to businesses ranging from healthcare to the automotive industry. That's helped power Nvidia's incredible growth over the last year, with revenue jumping 262% year over year from $7.19 billion to $26 billion in Q1.

Nvidia has the third-largest market capitalization in the world among publicly traded companies at $2.79 trillion. Microsoft and Apple sit at $3.08 trillion and 2.98 trillion, respectively. And Wall Street expects Nvidia to continue to climb ever higher.

"We have a $10 trillion market cap target for Nvidia by 2030," Beth Kindig, I/O Fund lead tech analyst, told Yahoo Finance following Nvidia's announcements. "And I will be candid and tell you I think that's too low."

President and CEO of Nvidia Corporation Jensen Huang delivers a speech during the Computex 2024 exhibition in Taipei, Taiwan, Sunday, June 2, 2024. (AP Photo/Chiang Ying-ying) (ASSOCIATED PRESS)

Nvidia wasn't the only chipmaker making news in Taiwan, though. AMD (AMD) also announced its MI325X AI accelerator, saying it will come to market in Q4 this year, as well as its fifth-generation EPYC server processor. The company also revealed its MI350 series accelerator for 2025 and the MI400 for 2026.

Beyond its server chips, AMD also debuted its AI 300 chip for AI PC laptops and its Ryzen 9000 series chips for laptops and desktops.

But AMD announcements didn't provide the same boost to their stocks as Nvidia's did. Shares of AMD fell more than 3% as of noon Monday.