Chip giant Nvidia (NASDAQ:NVDA) plans to acquire two Israel-based artificial intelligence (AI) startups. The move will likely help NVDA simplify enterprise AI deployments and reduce costs, strengthening its offerings and competitive positioning in the AI space.
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Confirming one acquisition, Nvidia said it has agreed to acquire Run:ai, a workload management and orchestration software provider. Meanwhile, The Information reported that NVDA is in talks to acquire another AI startup, Deci, that enables developers to build and deploy AI models.
These acquisitions will enable Nvidia to provide its enterprise customers with comprehensive solutions to manage and optimize their compute infrastructure across various setups, thereby reducing the complexity and expenses associated with AI deployments. This strategic move by Nvidia is expected to drive long-term demand for its graphics processing units (GPUs).
Is NVIDIA Stock a Buy or Sell?
Nvidia stock is up about 61% year-to-date. Moreover, it gained nearly 204% in one year. Despite the notable appreciation in its value, Wall Street sees NVDA as one of the best stocks to ride the AI wave.
With 39 Buys and two Hold recommendations, NVDA stock has a Strong Buy consensus rating. Analysts’ average price target on NVDA stock is $1,004.92, implying a 26.12% upside potential from current levels.
