The Blackwell Bounce: Stocks Set to Surge After Nvidia’s Groundbreaking Announcement The Blackwell Bounce: Stocks Set to Surge After Nvidia’s Groundbreaking Announcement

Written By Michael Gary Scott

It’s been about a week since CEO Jensen Huang packed a who’s who of the tech world into a stadium in San Jose. Huang was there to unveil the latest chips from Nvidia (NASDAQ:NVDA) code named Blackwell. Those chips are widely expected to improve on the company’s already dominant h100 chips. The announcement should benefit multiple AI stocks and has given Huang’s company a bit of a bounce following recent turbulence. This has led to this list of stocks to profit from Nvidia’s Blackwell.

The Rise of Nvidia’s Blackwell Chips

The chips code named Blackwell are expected to improve on Nvidia’s h100 chips, propelling the company even higher within the AI sector. This groundbreaking development is anticipated to serve as a catalyst within the already surging AI industry.

Nvidia (NVDA): Leading the Charge

Nvidia stock is poised to be the primary beneficiary of the Blackwell chip reveal. The demand for these chips is projected to mirror that of the highly sought-after h100 chips. Jensen Huang highlighted that the Blackwell chips would significantly enhance the efficiency of AI model training, potentially reducing training time and power consumption.

Furthermore, with Blackwell chips potentially priced above $50,000 and the scarcity of h100 chips causing prices to soar above $40,000, Nvidia’s market value continues to rise. The company’s long-standing investment in AI has solidified its market dominance, controlling a substantial portion of the AI computation market.

Micron Technology (MU): In the Supplier Spotlight

Micron Technology, a key provider of memory chips to Nvidia, is reaping the benefits of its relationship with the tech giant. The recent commencement of mass production of high bandwidth memory (HBM) chips for Nvidia’s AI semiconductors has positioned Micron Technology as a pivotal link in the supply chain.

Nvidia’s decision to diversify its HBM chip suppliers, testing chips from Samsung alongside Micron Technology, indicates a bright future for the company as an HBM supplier. This strategic move could significantly boost Micron Technology’s growth trajectory.

AMD (AMD): The Challenger

AMD, although experiencing a dip in share prices post Nvidia’s Blackwell chip revelation, remains a formidable opponent in the computational AI chip market. With the upcoming MI300 and MI400 chips on the horizon, AMD is gearing up to compete with Nvidia’s latest offerings.

AMD’s commitment to enhancing price-performance metrics indicates a fierce competition with Nvidia. As AMD aims to leverage its upgraded technology to challenge Nvidia’s market dominance, the semiconductor industry is poised for an intriguing battle between these tech giants.

SoundHound AI (SOUN): Riding the Voice AI Wave

SoundHound AI recently received a boost in stock value following Nvidia’s substantial investment in the voice AI firm. The synergy between Nvidia’s Blackwell chips and SoundHound AI’s voice AI capabilities, particularly in autonomous vehicles, presents a promising opportunity for both companies.

By aligning with Nvidia’s generative AI through the Drive platform, SoundHound AI is well-positioned to capitalize on the advancements brought about by the Blackwell B100 chips. This strategic alliance underscores the immense growth potential for SoundHound AI in the evolving AI landscape.

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ARM Holdings (ARM): A Key Player in the AI Arena

ARM Holdings, akin to SoundHound AI, has a significant role in the AI domain and stands to benefit from Nvidia’s latest technological breakthrough. The stock’s potential is further highlighted by its strategic positioning within the AI ecosystem, promising notable growth alongside Nvidia’s innovative strides.




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Nvidia’s Strategic Investment in ARM Holdings

Investors were recently enlightened about Nvidia’s inclusion in ARM Holdings’ notable portfolio of investments. While this move may grab attention, a more significant shift is unfolding in the aftermath of the Blackwell announcement.

The trajectory suggests ARM Holdings’ business model is on a robust upswing. As Nvidia’s chip complexity grows, ARM Holdings reaps higher rewards. Nvidia’s recent reliance on ARM IP has surged, particularly in the design of cutting-edge AI chips for various applications.

Consequently, the licensing costs have spiked significantly, with a rising demand for ARM’s IP designs. This positive trend is likely to intensify as Nvidia unveils more advanced chips, including the anticipated Blackwell B100.

Super Micro Computer (SMCI) in the Shadow of Nvidia

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Super Micro Computer (NASDAQ:SMCI) maintains a close tie to Nvidia, even post the announcement of an additional 2 million shares of stock. The stock suffered a setback following this move, sparking concerns of dilution. However, this presents an unexpected buying opportunity.

Playing a pivotal role in designing server racks and storage clusters for chip firms, Super Micro Computer’s fortunes are intricately linked with Nvidia’s surge in recent months. The company’s impending capital raise is crucial for sustaining its growth momentum amidst high demand for its services from Nvidia, especially with the rollout of Blackwell B100 chips.

Intel (INTC) and Enhanced Collaboration with Nvidia

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Intel (NASDAQ:INTC) has bolstered its cooperation with Nvidia in terms of packaging solutions following the Blackwell chips’ debut. The recent strategic alliance aims at fortifying Nvidia’s packaging supply chain, offering Intel new growth prospects.

With advanced packaging facilities in Oregon and New Mexico, Intel is poised to alleviate Nvidia’s supply chain challenges, particularly related to Taiwan Semiconductor Manufacturing (NYSE:TSM). Intel’s substantial $8.5 billion U.S. subsidies under the Chips Act underscore broader opportunities amidst geopolitical concerns in the semiconductor landscape.

On the date of publication, there were no positions held by the writer related to the securities discussed. The article’s viewpoints belong to the author, adhering to InvestorPlace.com Publishing Guidelines.

Being a freelance contributor, the writer Alex Sirois leverages diverse industry experiences and an MBA background from George Washington University to curate long-term stock picks for wealth-building.