Nvidia (NVDA) unveiled its newest product lineup at its developer's conference on Monday. The new platform is called Blackwell and Nvidia says tech companies like Oracle (ORCL) and Dell Technologies (DELL) are expected to be customers. Constellations Research Founder and Principal Analyst Ray Wang, joins Yahoo Finance Live to share his thoughts on Nvidia's conference.

According to Wang, investors learned "a lot of things" at the Nvidia event, with "the most important piece" being that Nvidia has grown past being "just a chip company." He emphasizes their focus "on the next layer," which is concentrating on software and expanding their chip products to a broader ecosystem of companies.

Wang highlights three crucial aspects of Nvidia's new Blackwell AI chip: backward compatibility, a "Lego-type architecture," and the fact that the Blackwell platform "achieves Jensen's law." He notes that these three factors set Nvidia up for success "when you think about what's required to take AI to the next level."

Wang also acknowledges that among other chipmakers and competitors, Nvidia possesses "some of the most advanced chipmaking technology," raising the question of whether "other chip manufacturers can catch up."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Angel Smith

Video Transcript

AKIKO FUJITA: Well, big news out of Nvidia's GTC conference in San Jose. CEO Jensen Huang unveiling the company's next-generation Blackwell AI chip, as well as new partnerships with software giants, and news it is bringing its Omniverse Enterprise Technology to Apple's Vision Pro headset. Joining us now on all this news, someone who attended the keynote. There you go.

You got that selfie, Ray. Ray Wang is Constellation Research founder and principal analyst. Always got to get that selfie, Ray. You know, look, this is a stock, when we're talking about Nvidia, that is up about 75% year-to-date. We're seeing it down today about 2%. Is that just a matter of a little profit-taking on the back or sell-the-news situation?

RAY WANG: Akiko, you're definitely right. They are taking some profit-taking, some money off the table. I think a lot of the news was being hyped up all the way into the conference. And I think that's where the stock price was there.

But I think we learned a lot of things at the conference. And I think the most important piece is that Nvidia is no longer just a chip company. If you look at all their extensions, they're focused on the next layer, which is really getting that chip extended out into the ecosystem, and then, of course, focusing on software, which is really important for them going forward.

AKIKO FUJITA: Yeah. We'll talk about that software part in just a minute. But this is a stock that still largely trades on that potential, or not even potential, just the demand coming through from their GPUs. The Blackwell chip here, B200, yesterday that was unveiled, largely expected. But give me your first impression here about how this elevates Nvidia's offering and, really, what this means for AI overall.

RAY WANG: Well, they did three things that were very important. One, they had backward compatibility, which means if you have your old H100 chip, you can swap it out onto Blackwell. The second thing they did was they built a LEGO-type architecture that says, you can tie all these GPUs together.

And so it's almost like, you know, we can turn like 10 GPUs into one big giant GPU. You can take 1,000 GPUs, turn it into one big giant GPU and pull those resources. And then I think the third thing we learned is this Blackwell platform actually achieves what we call Jensen's Law, not Moore's Law anymore. The ability to double 1,000 times compute every eight years. That's actually incredible thing when you think about what's required to take AI to the next level.

AKIKO FUJITA: Yeah, I mean, it's so hard to-- I was trying to wrap my head around what exactly that means today, Ray, given how far we've already come, right? How does this stack up against the competition? Yes, Nvidia is still far out ahead, but AMD, as well as Intel, really trying, at least, to make inroads here.

RAY WANG: So a couple of things happening. I mean, if you look at the chip-making ecosystem, there are some partnerships that were announced with Cadence, Ansys, Synopsis. So how you layer the chips, how you put the chips together, how you design them, and, of course, how you manufacture the chips with TSMC. They're taking advantage of TSMC's 3-nanometer technology and, more importantly, the ability to actually bring these chips together and package them in the right way.

These are some of the most advanced chip-making technologies that are out there. And there's nothing like it to be seen. And so the question is whether AMD or Intel, or other chip manufacturers, can catch up, or will people come up with an alternative to GPUs to be able to solve the same set of problems? I think the latter is what we're going to be looking for to say, is there something that will challenge the dominance of the GPU? And will it come in a different package?