How Blackwell architecture 'sets the stage' for Nvidia's AI leadership

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Nvidia's (NVDA) Monday AI conference has captured the industry's attention, with the tech giant unveiling promising new products. TECHnalysis Research President Bob O'Donnell joins Yahoo Finance Live to provide insight into the tech giant's releases.

O'Donnell likens the Nvidia conference to "a rock concert." He commends Nvidia for "delivering on what they promised." Although the markets may not be reacting as investors had hoped, he stresses that the company's new Blackwell architecture "sets the stage" for Nvidia to maintain its leadership in the AI realm.

O'Donnell highlights Nvidia's release of its NIMS technology, which he states will provide companies with software that eases the process of building generative AI applications. This development opens up new opportunities for companies to venture into the AI space and further establishes Nvidia as a software provider, unlocking "more revenue sources."

O'Donnell notes that Nvidia's new software releases are designed to empower "regular companies" that may not have the same resources and data scientists as larger companies, enabling them "to be able to pull some of this stuff off."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Angel Smith

Video Transcript

- Bob, it's great to have you here. And I know you're joining us live from the conference. I believe-- just your reaction to what we heard yesterday from Jensen Huang and whether or not those announcements lived up to the very high expectations.

BOB O'DONNELL: Well, first to jump on Dan's comments as well-- I mean, it was like a rock concert. It was unbelievable just to see the level of excitement there. And I went to GTC a long time ago. And let me tell you, the mood was not the same as it was yesterday.

So clearly, they do have this incredible momentum. And yeah, I do think they delivered on what they promised. And I'll even add one extra thing to what Dan had brought up in terms of important things. Not entirely sure how the market's reacting. Maybe some of this was already baked in.

But look, at the end of the day, this next generation Blackwell architecture sets the stage for them to stay ahead of the competition. And arguably, it was the first one designed and released in the generative AI era. While previous NVIDIA chips, of course, are being used for generative AI, they were actually built prior to the explosion of all this.

This one kind was built in that time era. The other big takeaway-- and this is a big strategic move, long term for NVIDIA like Dan mentioned for Groot-- is software in general. They unveiled something called NIMS-- NVIDIA Inference Microservices.