For a while there, it looked like chip stock Nvidia (NASDAQ:NVDA) could do no wrong. But it seems to have finally met with some trouble, as shares dropped nearly 2% in Tuesday morning’s trading. Nvidia showed off a new line of chips specifically devoted to the AI market, which it calls the “Blackwell” line. The Blackwell line, beginning with the GB200, will launch later this year.
Nvidia had no shortage of praise for its incredible new chips, declaring that “…we had to invent some new technology to make it possible.” However, what might have balked investors was the price tag on the Blackwell line. The GB200 is set to run between $30,000 and $40,000, which makes sense when you consider it had a research and development (R&D) budget of $10 billion behind it.
AI Nurses?
One of the things that Nvidia is looking to do with these new chips is potentially quite terrifying. It’s hoping to see its AI systems become part of nursing programs, where healthcare providers will shell out roughly $9 an hour to set up artificial intelligence nursing systems that can answer a range of healthcare-related questions without having to pay nurse wages.
Given that the average hourly pay for a nurse in the United States is $42.80—that number goes up to $59.94 for nurse practitioners—it’s no wonder healthcare companies are looking for a way to reduce that number.
Is NVDA a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 39 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 235.82% rally in its share price over the past year, the average NVDA price target of $913.74 per share implies 5.25% upside potential.
