Nvidia (NVDA) experienced a 3.4% decline in its stock price on Tuesday, March 18, 2025, following the commencement of the company’s annual GTC (GTC) conference held in California. The downturn coincided with a keynote address delivered by CEO Jensen Huang, during which he unveiled the company’s forthcoming AI chips, marking a significant update for the industry. Huang’s presentation, which spanned over two hours, confirmed the planned launch of Nvidia’s Blackwell Ultra chip slated for release during the second half of 2025. This follows the successful full-scale production of the current-generation Blackwell GPUs, a development that generated $11 billion in revenue during Nvidia’s fourth quarter. This revenue figure was achieved despite prior reports of overheating and glitches experienced with the GPUs, demonstrating the company’s ability to overcome initial challenges.
The keynote address highlighted the substantial production ramp-up of Blackwell, with Huang stating, “Blackwell is in full production, and the ramp is incredible. Customer demand is incredible.” He further indicated that the transition to the upgrade, Blackwell Ultra, would be seamless. Beyond the Blackwell Ultra chip, Nvidia introduced the GB300 superchip, a novel design integrating two Blackwell Ultras alongside one Grace CPU (central processing unit). Huang also announced the planned launch of the Vera Rubin chip in the second half of 2026, and the subsequent Vera Rubin Ultra chip slated for the second half of 2027— establishing a clear, annual roadmap for Nvidia’s advancements in AI supercomputing.
Despite these updates, Nvidia’s stock price experienced a sustained drop, contributing to a broader market downturn characterized by volatility within large-cap tech stocks. Nvidia’s share decline on Tuesday resulted in a year-to-date decrease of approximately 14%, reflecting considerable market fluctuations experienced throughout 2025. The stock commenced the year with a record close exceeding $149 in early January; however, concerns surrounding a new AI model developed by the Chinese firm DeepSeek reignited apprehensions regarding an impending AI bubble, leading to a dramatic decrease in Nvidia’s market capitalization— a loss of nearly $600 billion within a single trading day. This recent market correction followed Nvidia’s fourth-quarter earnings release and intensified macroeconomic uncertainty.
The broader market context is characterized by significant headwinds, with the Nasdaq (^IXIC) entering correction territory on March 6 and the S&P 500 (^GSPC) following suit a week later. These downward trends are largely attributed to President Trump’s ongoing tariffs and the influence of DOGE-driven cuts to federal jobs, both contributing to elevated inflation concerns. Analyst sentiment regarding the AI sector was similarly marked by caution, with some expressing worry over potential over-investment in AI compute capacity among Nvidia’s customers, anticipating a subsequent period of utilization decline— a cyclical downturn.
However, seasoned tech analysts remain optimistic. Wedbush analyst Dan Ives, in a note to investors, expressed hope that the GTC conference would serve as a “wake-up moment” for the technology investment community, suggesting that the event would refocus attention on the transformative potential of the AI Revolution and the substantial tech spending anticipated in the coming years. Ives further emphasized Nvidia’s dominant position, stating that its leadership stems not solely from its chip architecture or performance but rather from its culture of innovation, ecosystem of incumbency, and ongoing substantial investments in software, training models, and related services. Truist analyst Will Stein also maintained a bullish stance on Nvidia, reaffirming his Buy rating and $205 price target, citing the company’s strong market position and strategic investments. Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at [email protected]. Click here for the latest technology news that will impact the stock market.