Nvidia Edges Higher on New High-End AI Chips despite Declining Tech Stocks

On Monday, Nvidia added new features to its latest flagship chip for artificial intelligence (AI). The chip is called H200, claimed to give better performance than Nvidia’s current top H100 chip.

Nvidia dominates the market for AI chips and powers many AI services such as OpenAI’s ChatGPT. The primary upgrade on the chip with more high-bandwidth memory, 141-gigabytes of high-bandwidth memory, up from 80 gigabytes in its previous H100, will give users faster response from the AI.

The suppliers for the memory for the new chip were not disclosed by Nvidia, but Micron Technology and Korea’s SK Hynix are among the companies likely to be involved.

This new offering of the H200 will start to roll out next year, with Amazon Web Services, Google Cloud, Microsoft Azure, and Oracle Cloud Infrastructure being the first cloud service providers to access the chip.

Could this be the reason why the share price of Nvidia (NVDA) rose by 0.59% on Monday even though the NASDAQ composite index fell by 0.22% and Advanced Micro Devices Inc. also dropped by 1.52%? Prices of Nvidia continued to increase in after-hour trading on Monday, showing a 0.29% gain at $487.60 per share.