Benzinga - At the GPU Technology Conference on Tuesday, Nvidia Corporation’s (NASDAQ: NVDA) CEO Jensen Huang said that the “iPhone moment for AI” has started. Huang added that the company is ready to spearhead this development, providing the necessary infrastructure to companies innovating in the field.
Nvidia is preparing to offer DGX AI supercomputers through the cloud by partnering with Microsoft Corp’s (NASDAQ: MSFT) Azure, Alphabet Inc’s (NASDAQ: GOOGL) Google GCP and Oracle Corporation’s (NASDAQ: ORCL) OCI.
- Needham analyst Rajvindra Gill maintained a Buy rating and price target of $270.
- Oppenheimer analyst Rick Schafer reiterated an Outperform rating on the stock.
- Raymond James analyst Srini Pajjuri reaffirmed a Strong Buy rating on the stock.
Needham
- “We came away from GTC 2023 Day 1 incrementally more positive on the NVIDIA story,” Gill said in a note. The company had an “incrementally positive tone for near-term H100 demand with corresponding supply to meet accelerating, longer-term demand."
- “The GPU inferencing TAM is likely larger than previously expected,” a part of the DGX Cloud strategy will be to rent from CSPs and go direct to customers, and “the Grace CPU strategy is targeting niche server markets with a focus on single-thread performance and high bandwidth data movements."
- “Rapid adoption of OpenAI’s ChatGPT3 has provoked a sense of urgency among various companies/industries creating an inflection point,” Schafer said.
- “Cloud computing has grown 20% annually over the past decade to a $1T industry,” the analyst mentioned. “NVDA is looking to accelerate every facet of the DC through its three chip GPU/CPU/DPU strategy,” he added.
- “As expected, Generative AI was front and center at the NVDA GTC conference,” Pajjuri wrote in a note. “NVDA’s full-stack AI strategy was on full display with the company now expanding into Cloud service offerings to go with its chips, systems, and software,” the analyst said.
- “We estimate that Cloud service offerings present ~$1B/yr incremental revenue opportunity in the next 2–3 years (based on $2.23B purchase commitments for Cloud capacity for the next 4-6 yrs),” he added.
Image: Nvidia headquarters, Wikimedia
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