Nvidia (NVDA) has announced yet another innovation, this time a new generative AI model aimed at redefining audio generation. The company is known for building chips that power many things, from data centers to cryptocurrency mining. But now Nvidia is gearing up for the release of Fugatto (Foundational Generative Audio Transformer Opus 1), a model that can modify voices and create new sounds. This technology could have wide-ranging applications for the music and audio industry.
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Why Is Nvidia Stock Down Today?
Since no company or industry-specific catalysts have been announced today, it is likely that negative market momentum is pushing Nvidia stock down today. However, this volatility may already be subsiding, as NVDA stock’s current trajectory suggests that it could rebound soon. While shares struggled last week, Nvidia has enjoyed a quarter of mostly steady growth, rising 10% for the three-month period.
Now the pending release of Fugatto could help push shares up even more, although no plans to release the program have been confirmed. Nvidia’s technology isn’t often associated with fields such as music or audio. But now it may be able to offer investors exposure to another market. Other companies, such as Meta Platforms (META) have produced similar programs. But Reuters reports that Fugatto is different, as it can modify existing audio in ways that can change how music and podcasts are produced.
Bryan Catanzaro, Vice President of Applied Deep Learning Research at Nvidia, predicts that generative AI will “bring new capabilities to music, to video games and to ordinary folks that want to create things.” As the creator economy continues to grow, demand for programs like Fugatto will likely be high. This could help create a powerful catalyst for Nvidia stock once the program is opened up for sale to clients.
Is NVDA Stock a Good Buy Right Now?
Wall Street is still highly optimistic about Nvidia’s growth prospects. Analysts have a Strong Buy consensus rating on NVDA stock based on 44 Buys and four Holds assigned in the past three months, as indicated by the graphic below. After an 186% rally in its share price over the past year, the average NVDA price target of $174.87 per share implies 28% upside potential.
Despite a recent downgrade from Phillip Securities, sentiment toward NVDA stock remains highly bullish. This is only likely to increase if Fugatto takes off and Nvidia starts to help revolutionize the audio streaming and creation markets.
