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 chips code named Blackwell or expected to improve on Nvidia’s h100 chips and pull the company even higher. In turn, that should pull the wider AI sector that the company anchors higher again.
In other words the introduction of the Blackwell chips should be a strong catalyst within the already surging AI sector. With that in mind let’s look at seven stocks that should benefit from the recent conference.
Nvidia (NVDA)
Nvidia stock should be the biggest beneficiary of the recent unveiling of the Blackwell chip.
Investors should anticipate that demand for those chips will be similarly strong to demand for the company’s h100 chips. CEO Jensen Huang noted that the Blackwell chips will basically quadruple the efficiency of AI model training once released. Training a current AI model takes 90 days and requires 8,000 h100 GPUs and 15 megawatts of power. A similar model could be trained over the same period of time with 2000 Blackwell chips and 4 megawatts of power.
It’s also expected that those chips could cost north of $50,000. Nvidia’s h100 chips have been wildly in demand with prices rising above $40,000 per chip at times.
Nvidia has become extremely valuable because the company has invested in AI for more than a decade. that early investment has paid off and led to a commanding market lead in AI. The company isn’t without competition but Nvidia controls roughly 4/5 of the AI computation market.
Micron Technology (MU)
Micron Technology (NASDAQ:MU) is a leading provider of memory chips and an important supplier of those chips to Nvidia. Its stock is currently benefiting from a strong earnings report which is one reason to buy the stock. That aside, let’s look at what Micron does and how that relates to Nvidia.
Micron Technology is an important supplier of high bandwidth memory chips that Nvidia uses to enable AI workloads on its hardware. At the end of February it was announced that Micron Technology had started mass production of those HBM memory chips to be used in Nvidia’s AI semiconductors.
Nvidia is diversifying its supply chain for HBM chips. Micron Technology will be the sole link in the supply chain within the domestic market. Previously, South Korea’s SK Hynix was the sole provider of the HBM chips. However, Nvidia also announced that it was testing HBM chips from Samsung – another Korean giant – at the same time. It’s one of those stocks to profit from Nvidia’s Blackwell.
MU stock has tremendous potential to grow should the company prove successful as an HBM supplier.
AMD (AMD)
AMD (NASDAQ:AMD) share prices fell in the wake of Nvidia’s GPU Technology Conference where the Blackwell chip was announced. The company continues to attempt to chip away at Nvidia’s 80% dominance over computational AI chips.
Essentially, there wasn’t any specific business related news that should have sent amd’s shares lower. That’s a good thing because investors should not forget that AMD is also set to introduce next generation AI chips this year.
AMD is slated to release its updated MI300 chips later this year. Those chips will feature technology that is set to upgrade its MI300 chips. Those chips are expected to compete with the Blackwell B100 from Nvidia. AMD is expected to release MI400 chips in 2025.
Those updated MI300 chips will include high bandwidth memory technology on par with that being used in Nvidia chips. AMD continues to challenge Nvidia especially in relation to price versus performance metrics. If Nvidia’s greed ends up getting the better of the company AMD will be right there to pick up the slack. This makes it one of those stocks to profit from Nvidia’s Blackwell.
SoundHound AI (SOUN)
SoundHound AI (NASDAQ:SOUN) stock recently popped after it was revealed that Nvidia has made a significant investment in the voice AI firm. It should continue to be strong in the wake of the Blackwell chip announcement by Nvidia.
Voice AI or conversational AI is one of the next niche areas within artificial intelligence. SoundHound AI is one of the leaders in that vertical and provides services to firms from data centers to restaurants. However, Blackwell chips are particularly important in relation to autonomous vehicles, another strength of SoundHound AI.
What’s important to note here is that Nvidia’s generative AI will work in concert with SoundHound AI’s voice AI in an in vehicle voice assistant. Nvidia invested in SoundHound AI because it applies to its Nvidia Drive platform. That platform has evolved to use the upcoming Blackwell B100 chips which should open a broader runway for SoundHound AI in the process. That is the primary reason to watch its stock in the wake of the GTC conference. This makes it one of those stocks to profit from Nvidia’s Blackwell.
ARM Holdings (ARM)
ARM Holdings (NASDAQ:ARM) stock is similar to SoundHound AI in that it was also recently revealed to be among Nvidia’s small but influential portfolio of holdings.The fact that Nvidia has invested in arm stock is certainly important but there is a more important factor to consider in the wake of the Blackwell announcement.
It’s reasonable to believe that ARM Holdings’ business model just got significantly stronger. Generally speaking, arm Holdings gets paid more as the complexity of Nvidia’s chips increases. That is true because Nvidia increasingly leverages IP from ARM Holdings of late. The company’s advanced chip technology designs are required in many of Nvidia’s most recent AI chips for various applications. That means that the price of licensing has increased dramatically of late. It’s also true that more and more of those IP designs are required. The result is that ARM Holdings is booming.
That should only continue to increase as Nvidia releases more and more advanced chips including the Blackwell B100.
Super Micro Computer (SMCI)
Super Micro Computer (NASDAQ:SMCI) remains closely correlated to Nvidia even after the company announced that it would offer 2 million shares of stock.
The company’s shares failed dramatically after it announced its intention to sell 2 million additional shares of common stock in order to raise capital. While that is certainly going to raise fear of subsequent dilution moving forward, it also creates a buying opportunity.
Super Micro Computer helps chip firms design Server racks and storage clusters that are important in the realm of data centers. The close relationship between Super Micro Computer and Nvidia has sent shares of the latter soaring in recent months.
The bullish outlook on Super Micro Computer is simply that the company needs more capital to chase continued growth. The recent issuance of 2 million shares seems more innocuous when viewed in that light. In any case, the company is likely to see continued demand for its services from Nvidia as the company introduces its Blackwell B100 chips. Those chips will be in demand for data center applications and Super Micro Computer plays a vital role in designing the server racks needed therein.
Intel (INTC)
Intel (NASDAQ:INTC) has recently closened its ties with Nvidia in relation to packaging opportunities. That’s one reason to believe in Intel stock following the reveal of the Blackwell chips.
The two companies recently announced that they will be working together to strengthen Nvidia’s packaging supply chain requirements. It’s reasonable to assume that the release of the Blackwell B100 chip will provide further opportunities for Intel in that regard.
Intel has advanced packaging capacity in Oregon and New Mexico which will serve to alleviate some of Nvidia’s supply chain issues especially in regard to Taiwan Semiconductor Manufacturing (NYSE:TSM).
Investors should also consider that Intel was recently awarded $8.5 billion dollars in U.S. subsidies In relation to the Chips act. Although the news isn’t directly related to Nvidia’s most recent announcement it is a positive catalyst overall period. It’s clear that the United States remains highly concerned about the threat of China to its neighbors including Taiwan. That is opening new avenues of opportunity for Intel.
On the date of publication, Alex Sirois 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.
