Nvidia (NASDAQ:NVDA) may not actually be an AI stock, but it’s increasingly making its presence felt in that market. And indeed, Nvidia’s latest development gave it even more presence in AI, which didn’t sit well with investors. Nvidia was down somewhat in Tuesday afternoon’s trading despite a pretty potent new development in the wings.
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The new platform not only represented a step forward, but also gave a nod to the past. Known as the GH200 Grace Hopper superchip platform—and named after Grace Hopper, former Navy rear admiral and programming legend—the new platform is designed to further drive AI capability. Powered by an HBM3e processor, the new platform will enhance AI’s ability to carry out its various tasks. The new platform is said to improve memory capacity 3.5 times over, and offer three times the bandwidth.
There’s little doubt that users will be interested in these new chips, particularly data centers running generative AI operations. Nvidia already has a rather tight grip on that market, with basically 80% of the market squarely in its hands. With the new platform in place, Nvidia asserts that the costs of running a large language model (LLM) will decline “significantly.” That should be a draw, though admittedly, Nvidia likely can’t get much more of the market than it already has. Still, this should do a good job of ensuring it stays in Nvidia’s hands.
And analysts, meanwhile, are overwhelmingly on Nvidia’s side. With 30 Buy ratings and two Hold, Nvidia stock is a Strong Buy by analyst consensus. Further, with an average price target of $504.46, Nvidia stock comes with a 13.21% upside potential.
