Breakfast News: New Chips But Nvidia Dips
Nvidia unveiled its new Blackwell Ultra chip at the GPU Technology Conference, but shares fell 4% post-announcement due to lack of surprises. The company is shifting focus to real-world AI applications, collaborating with Disney and Yum! Brands on AI projects. General Mills reported a 5% drop in Q3 sales, while Williams-Sonoma is set to join the S&P 500. Regenexbio shares rose 11.4% after positive trial news, while Sarepta Therapeutics fell 27% due to a linked mortality incident. Starboard Value is pushing for changes at Autodesk, and StoneCo shares rose 10% after a revenue beat.
Breakfast News: New Chips But Nvidia Dips
March 19, 2025
| Tuesday's Markets |
|---|
| S&P 500 5,615 (-1.07%) |
| Nasdaq 17,504 (-1.71%) |
| Dow 41,581 (-0.62%) |
| Bitcoin $82,032 (-2.45%) |
1. Blackwell Ultra Unveiled
Nvidia (NVDA -3.31%) announced its new Blackwell Ultra chip at its GPU Technology Conference (GTC 2025) yesterday, shipping later this year. The company also revealed a new GB300 device, which combines two Blackwell Ultras plus a CPU, aimed at hyperscalers like Microsoft (MSFT -1.33%) and Meta (META -3.73%).
- "This is the computer of the age of AI": CEO Jensen Huang showcased two new "AI personal supercomputers," DGX Spark and DGX Station. Nvidia's next-generation Vera Rubin GPU chips are expected to ship in 2026.
- Muted market reaction: Nvidia was down 4% after hours yesterday, after the keynote speech didn't reveal many major surprises, since the new chips – plus likely timescales – were leaked ahead of the event.
2. AI in the Real World
The next step is all about AI agents, according to Huang: "How they run, what enterprises run, and how we run it will be fundamentally different." He says the company is well placed for the industry shift from training AI models to making real-world use of them.
- "The era of physical AI is here": In collaboration with Disney (DIS) and Alphabet (GOOG -2.32%), Nvidia is developing models to simulate humanoid robotics.
- Smart fast food: Yum! Brands (YUM 0.13%) announced a partnership with Nvidia, after the two companies have been trialing voice AI ordering at Taco Bell outlets. CTO Joe Park said Yum! plans to rollout AI ordering to 500 restaurants including Pizza Hut and KFC, starting in the second quarter of 2025.
3. What to Watch on Wednesday
While the world awaits the outcome of the Federal Reserve’s meeting today, markets will also be looking for economic signs from a third-quarter report from General Mills (GIS -0.77%) before the opening bell. The food maker reported a 5% fall in third-quarter net sales to $4.8 billion, with adjusted earnings per share (EPS) down 15% to $1.00. The company saw inventory headwinds in North American markets, and expects full-year sales to drop between 1.5% and 2%. Shares fell around 3.5% in pre-market trading.
- Joining the S&P 500 next week: Williams-Sonoma (WSM -1.63%) posts fourth-quarter results this morning, with earnings per share expected to drop 46% year over year, but with revenue up 3%. TMF CIO Andy Cross recently noted "While WSM does have some impacts to tariff war it has diversified its supply chain outside of China (now less than 25% of goods). And they make a lot in the U.S. That team is adept at managing its inventories and margins."
- Moved to 'Hold' in Rule Breakers last summer: Five Below (FIVE -0.69%) will release a Q4 update after the closing bell. The company smashed through Q3 earnings expectations while also beating revenue estimates. Investors need to watch for cost management moves, as margins are coming under pressure.
4. More Market Movers
Biotech Breakthroughs recommendation Regenexbio (RGNX 11.43%) was boosted Tuesday after rival Sarepta Therapeutics (SRPT -27.44%) reported a mortality linked to its Duchenne muscular dystrophy (DMD) product Elevidys. Regenexbio, currently running a trial for its DMD candidate RGX-202, ended the day up 11.4% while Sarepta crashed 27%.
- Activist battle: The Wall Street Journal says investor Starboard Value is ready to fight at Stock Advisor rec Autodesk (ADSK -0.24%), which it thinks has been underperforming. Starboard has a $500 million stake in the design software specialist, and the report says it plans to nominate director candidates ahead of Autodesk's AGM.
- Global opportunities: Brazilian fintech company StoneCo (STNE -3.14%) rose 10% after hours Tuesday, on the back of a fourth-quarter revenue beat, with 3.61 billion real ($637 million) ahead of the expected 3.58 billion real ($631 million). Andy Cross recently commented "I do think looking overseas for ideas is better now than before."
5. Foolish Fun
Sportradar (SRAD -1.42%), the real-time scores and stats tracker that powers many sports betting platforms, releases earnings before the opening bell, just in time for a certain college basketball tournament this month...