Benzinga - by Zaheer Anwari, Benzinga Contributor.
- Meta is making a significant investment in Nvidia's AI chips, a move that positions Nvidia as a leading player in AI chip production.
- These sought-after H100 graphics cards from Nvidia, essential for advanced AI algorithm development and implementation, come with a high price tag.
- Nvidia's engagement in AI has led to a remarkable surge in its stock value, with a 235% uptrend in 2023.
These high-performance graphics cards, sought after by many, carry a hefty price tag of over $30,000 and can exceed $40,000 on platforms like eBay due to their high demand.
Yann LeCun, Meta's Chief Scientist, has highlighted the essential role of GPUs (Graphics Processing Units) in advancing AI. The use of powerful computing hardware, such as Nvidia's H100 graphics cards, is crucial for tackling the complex computations necessary for AI and machine learning tasks.
Nvidia has experienced a remarkable surge in its stock value due to its engagement in AI. In 2023, the company witnessed a stunning 235% uptrend in its stocks.
Continuing this strong performance, Nvidia's stock has already made a bullish move of 17% in early 2024. This impressive increase in stock value clearly demonstrates the market's unwavering confidence in Nvidia's position as a frontrunner in AI chip production.
Meta's billion-dollar investment in Nvidia's technology is set to bring about groundbreaking advancements in AI. By integrating Nvidia's H100 graphics cards into their computing infrastructure, Meta is not only making a financial investment, but also strategically aligning with the growing importance of AI and machine learning in driving innovation and growth in the technology industry.
Nvidia's stock continues to soar, extnding its gap between the $500 mark that previously hindered its progress. This progress speaks volumes about the market's confidence in the company.
Moving forward, the next hurdle for Nvidia's stock could be reaching the noteworthy $1000 milestone, solidifying its dominance in the AI technology sector.
After the closing bell on Thursday, January 18, the stock closed at $571.07, trading down by 1.95%.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.
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