Nvidia Corp’s CEO, Jensen Huang, was met with dwindling investor support at the chipmaker’s GTC conference in San Jose. The CEO’s stock market recommendations, which investors usually receive with excitement, met indifference this time around. During the conference, Huang stated that AI computing required a 100-fold increase compared to last year.
Nvidia CEO Jensen Huang recently addressed the increasing challenges and opportunities in artificial intelligence (AI) during the company’s annual GPU Technology Conference (GTC) in San Jose.
The GTC conference began in 2009 and has since evolved into an anticipated premier gathering for developers, researchers, business leaders, and technology professionals.
The 2025 conference held at the San Jose McEnery Convention Center and attracted over 25,000 in-person attendees. The conference was dubbed “AI Woodstock,” and true to its name, emphasized the latest advancements in AI technology.
Jensen Huang also used the conference as an avenue to unveil the next generation of AI chips and Nvidia Corp’s strategic partnerships.
Nvidia’s Huang attempts to reassure investors
With the release of DeepSeek, the Chinese startup that claimed to have trained an advanced AI model comparable to market leaders ChatGPT and Claude AI for less than $6 million and without access to Nvidia’s best chips due to US export controls, concerns rose that the company’s chips were less necessary than previously thought for AI development. This meant that companies looking to integrate AI into their operations could scale back their investments in Nvidia’s chips.
As a result, shares of Nvidia Corp and other major tech giants shed more than $1 trillion in market value. NVDA shares plunged a whopping 17% and have been on a downtrend since.
During the conference, Huang stated there has been a significant shift in computational requirements for AI. The CEO stated that advanced AI models capable of reasoning and acting as human agents would need about 100 times more computing power than initially estimated.
The surge in computing power is due to the complexity of tasks these AI models are being designed to handle.
Huang explained that while some AI models, like DeepSeek, claim to operate efficiently with fewer Nvidia chips, high-performing reasoning models are more complicated and demand substantial computational resources. The ongoing and potentially increasing demand for Nvidia’s high-performance chips in the AI sector lends weight to this.
During the GTC event, Huang confirmed that Nvidia’s next GPU chip, the Blackwell Ultra, will begin shipping in the second half of this year. The CEO stated that the demand for the chip has been “amazing.” Projections for the company’s revenue for the first quarter of 2025 are up to $43B, plus or minus 2%.
Another upgraded family of chips called Vera Rubin, which are expected to be more powerful and enable faster processing speeds than Blackwell, is also on track for release in the second half of 2026. The more advanced Vera Rubin Ultra is expected to launch by 2027.
Huang also revealed that Nvidia intends to partner with General Motors to help integrate their technology into the automaker’s autonomous vehicles.
Fall of the stock kingmaker
Nvidia’s dominance in AI computing gives Jensen Huang’s views or insights about the technology an overwhelming impact. Comments from Huang or an association with Nvidia can either spell disaster or signal an increase in a company’s shares in the stock market.
For instance, shares in Aurora, a self-driving tech company, surged 29% after news of its long-term strategic partnership with Nvidia broke. The partnership was aimed at bringing Aurora’s plan to put driverless trucks on the road to fruition.
On the other hand, the shares of various companies in the quantum computing sector of the market plunged after a comment from Huang in January this year.
During the Consumer Electronics Show (CES), Huang expressed uncertainty about the current practicality of quantum computing, suggesting that we were still decades away from having “very useful” quantum computers.
Rigetti Computing shares plummeted by approximately 47%. Quantum Computing Inc. experienced a 45% drop in share value. IonQ recorded a decrease of over 42%, and the shares of D-Wave Quantum fell nearly 50%. These rapid declines collectively erased over $4 billion in market capitalization.
Knowing this, it comes as a surprise that following Huang’s announcement of Nvidia’s partnership with General Motors Co., the company’s shares sank. It fell as much as 1.7% on Tuesday, ending the day down 0.7%.
Nvidia Corp. is also experiencing a decline. The company’s shares fell over 3% Tuesday and are down more than 20% over the past month. This continuous decline has erased over $800 billion in the chipmaker’s market value.
Brian Mulberry, client portfolio manager at Zacks Investment Management Inc., said that Nvidia has lost its luster. He also stated that there was nothing “super groundbreaking” that would inspire him to invest in Nvidia following the announcements made at the GTC conference.
A wireless project announced by Huang on Tuesday in partnership with T-mobile US Inc. and Cisco Systems Inc. was also met with disinterest from investors. Nvidia is helping create “AI-native,” which is a wireless network hardware for new 6G networks. Following the announcement, Cisco shares dropped 1%.
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