Big things are happening at Nvidia (NASDAQ:NVDA) and shares of the artificial intelligence (AI) leader are rising steadily. Ever since the company reported impressive first-quarter earnings and revealed plans for a 10-for-1 stock split, NVDA stock has been on a winning streak.
But an important announcement from CEO Jensen Huang has created even more momentum as a new week takes off. Nvidia has confirmed key updates to its already-popular AI accelerators, a key component of the AI revolution upon which many companies depend, will be coming in both 2025 and 2026. Next year, the Blackwell Ultra chip will be released, and in 2026, the company will unveil a new platform called Rubin. As Bloomberg reports:
“Nvidia has been the main beneficiary of a massive flood of AI spending, helping turn the company into the world’s most valuable chipmaker. But it now looks to broaden its customer base beyond the handful of cloud-computing giants that generate much of its sales. As part of the expansion, Huang expects a larger swath of companies and government agencies to embrace AI — everyone from shipbuilders to drug developers. He returned to themes he set out a year ago at the same venue, including the idea that those without AI capabilities will be left behind.”
These advancements could help further Nvidia’s dominance over the tech sector. As more companies focus on developing their own generative AI platforms and chatbots, they are continuously turning to Nvidia. This will likely include Elon Musk’s xAI soon. But what do investors need to know about Nvidia’s new innovation, Rubin? Let’s take a closer look.
NVDA Stock and Nvidia’s Rubin: What to Know
- Rubin is Nvidia’s new AI chip architecture, announced ahead of Taiwan’s COMPUTEX tech conference.
- Nvidia’s new AI platform will operate on HBM4, “the next iteration of the essential high-bandwidth memory that’s grown into a bottleneck for AI accelerator production.”
- Rubin is part of Nvidia’s pledge to start turning out new AI chip models on a “one-year rhythm” after previously releasing them on a two-year update basis.
- The Rubin announcement comes just three months after Huang unveiled the Blackwell chip at the GPU Technology Conference (GTC) in San Jose, California, on March 19, 2024.
- According to ZDNet, Nvidia expects to start production on its Rubin platform in early 2025. Taiwan Semiconductor Manufacturing (NYSE:TSM) will fabricate the chips.
- One difference between the Rubin and the Blackwell is the size, specifically the Rubin’s 4x reticle design. It takes up more space on the area of a 12-inch silicon wafer than the Blackwell, whose design is only 3.3x.
- While this news has been a positive catalyst for both NVDA stock and TSM, rival chipmaker Advanced Micro Devices (NYSE:AMD) is falling today. This suggests that the market is optimistic about what these new chips will do for both Nvidia and its partners.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
