Nvidia shares close up after company unveils latest AI chips

Nvidia stock closed up 1% on Tuesday after CEO Jensen Huang said in an analyst meeting that the company expects to increase its share of the $250 billion data center market.

Huang's comments were made a day after Nvidia announced its latest generation of artificial intelligence chips, called Blackwell, and a new AI software platform.

"You can build chips to make software run better, but you can't create a new market without software. What makes us unique is that we're the only chip company I believe that will create its own market," he said during the meeting on Tuesday.

Shares had dipped about 2% before his comments sent the stock back up.

Huang announced the new chips on Monday at Nvidia's developer conference in San Jose, California, touting them as even more powerful processors than the current generation of Hopper graphics processing units, which have been highly sought after for running large AI models. The first Blackwell chip is the GB200 and will ship later this year.

"We had to invent some new technology to make it possible," said Huang, holding up one of the new chips during an interview with CNBC's "Squawk on the Street" on Tuesday. He estimated one chip could cost $30,000 to $40,000 and that the research and development budget for the processor totaled around $10 billion.

The company on Monday also announced a new enterprise software product known as Nvidia Inference Microservice, which makes it easier to run older generations of Nvidia GPUs.

"Move over Taylor Swift, you're not the only one that can sell out a stadium as Jensen presented his GTC keynote to a packed crowd at the SAP Center in San Jose," Bernstein analysts wrote in an investor note Tuesday, maintaining an outperform rating and $1,000 price target on