Nvidia shares fell 2% on Tuesday morning after the company unveiled its latest generation of artificial intelligence chips called Blackwell.

CEO Jensen Huang announced the new chips on Monday at Nvidia’s developer conference in San Jose, California, touting them as an even more powerful processor than the current generation of Hopper GPUs, which are in high demand for running large AI models. Blackwell’s first chip is the GB200 and will ship later this year.

“We had to invent some new technology to make it possible,” Huang said, holding up one of the new chips during an interview on CNBC’s “Squawk on the Street” on Tuesday. He estimated that a single chip could cost between $30,000 and $40,000, and that the R&D budget for the processor was about $10 billion.

On Monday, the company also announced a new enterprise software product known as Nvidia Inference Microservice that makes it easier to work with older generations of Nvidia GPUs.

“Move over Taylor Swift, you’re not the only one who can sell out a stadium as Jensen delivers her GTC keynote to a packed audience at the SAP Center in San Jose,” Bernstein analysts wrote in a note to investors on Tuesday, maintaining an outperform rating and a $1,000 price target on the stock.

Analysts at Wells Fargo reacted to the chipmaker’s announcement with measured optimism, reaffirming their outperform rating on Nvidia shares while raising their price target to $970 from $840.

“While NVDA has re-emphasized its full stack/platform differentiation, we think some may have expected a bit more from the launch of the Blackwell B200,” the analysts wrote in a note.

Still, analysts at Wells Fargo wrote that the news reinforces their “long-held bullish view” on Nvidia’s technology and monetization opportunities.

Analysts at Goldman Sachs, maintaining a buy rating on Nvidia shares, raised their price target to $1,000 from $875 on Tuesday and expressed “renewed appreciation” for Nvidia’s innovation, customer and partner relationships and key role in the generative AI space after the keynote of the company.

“Based on our recent industry conversations, we expect Blackwell to be the fastest-growing product in Nvidia’s history,” the analysts wrote in a note to investors. “Nvidia has played (and will continue to play) an important role in democratizing AI across many industry verticals.”

— CNBC’s Michael Bloom contributed to this report.

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