NVIDIA stock falls as Tesla's Musk says Dojo will be competitive
Shares of Nvidia (NASDAQ: NVDA) are down around 1.6% premarket Wednesday after Tesla (NASDAQ: TSLA) CEO Elon Musk told investors on the company's earnings call after the close on Tuesday that they are "going to double down on Dojo," its supercomputer.
Dojo is a supercomputer designed by the electric vehicle giant for computer vision video processing and recognition.
While Musk said he is "incredibly impressed by NVIDIA's execution and the capability of their hardware," he added that he is "quite concerned about actually being able to get steady in GPUs" and when they want them.
He noted that the demand for Nvidia is so high, and it is "obviously their obligation essentially to raise the price of GPUs to where the market will bear, which is very high."
"So we are going to double down on Dojo, and we do see a path to being competitive with NVIDIA with Dojo," declared Musk.
Overall, he stated that Tesla has "really got to make Dojo work," and he has full belief that they will.