On Thursday, Nvidia's stock appreciated after the chipmaker reported Q4 earnings. CEO Jensen Huang noted that their data center business is expanding due to increased demand for AI chips.
Nvidia is making a major push into AI technology, particularly machine learning and simulation. Additionally, they're making inroads into healthcare services.
Stock Surge
Nvidia's stock rise is an example of how its leadership in AI and ChatGPT can present investors with lucrative investment opportunities. Unlike many companies that specialize in one technology or area, Nvidia has taken a comprehensive approach to AI, funding success through both technical and operational competence.The chip maker's success in this space can be attributed to several factors, including its Cuda software development system and various AI libraries that facilitate research across the globe. It has also been cited 90 times more often than other chipmakers in academic papers and boasts an expansive ecosystem of researchers.
Q4 Earnings
On Wednesday afternoon, Nvidia (NASDAQ:NVDA) reported better-than-expected earnings. Though revenue came in slightly below expectations, its EPS came in at $0.88, exceeding Wall Street estimates by 10%.Nvidia also raised their guidance for next quarter, projecting sales of $6.55 billion plus or minus 2%. These results come amid an uptick in AI activity across the market.
AI Potential
Nvidia has been the undisputed king of AI computing for years with its GPUs, powering technologies like Google's YouTube cat finder, DeepMind's board game champion AlphaGo and OpenAI's language prediction model ChatGPT.NVIDIA's GPUs are superior at handling AI calculations, giving them an edge over competitors such as Intel. Furthermore, its chips are used in autonomous cars, drones and robots - further proof of its superiority.
Nvidia is at a prime time in terms of AI potential. Its chips are essential for speeding up AI tasks like video captioning, translating speech live from one language to another and training computers to autonomously drive cars.
AI Inflection Point
Nvidia is the undisputed leader in AI, thanks to its specialized GPUs designed specifically for machine learning math. Intel (INTC) generic central processing units can handle more computing tasks but lack the specialized math required for AI applications.Thursday, Nvidia's shares surged to their highest levels in nearly a year. CEO Jensen Huang expressed optimism about the $600 billion market for AI chips at what he called an "inflection point" for one of technology's fastest-growing sectors.
Nvidia hopes to further cement its position in AI and ChatGPT by offering the DGX Cloud, which allows enterprise prospects to access AI software from cloud computing providers like Microsoft (MSFT) or Oracle (ORCL). This could open up a new market for AI-as-a-service for hundreds of corporations around the world.
DGX Cloud
Nvidia CEO Jensen Huang kicked off GTC 2022 by unveiling new chips, networking solutions and AI models designed to power digital twins, edge computing and virtual worlds. Additionally, Nvidia is taking its GPU-design business model into the cloud with DGX Cloud, a service designed to bring AI within reach of every enterprise customer.Oracle Cloud and other cloud services will soon offer this service, and Huang hopes it will put AI in the hands of researchers around the world.
Nvidia AI Supercomputer
Recently, Nvidia and Microsoft unveiled a multi-year collaboration to build one of the world's most powerful AI supercomputers, using Azure's cutting-edge supercomputing infrastructure combined with Nvidia GPUs, networking capabilities and all AI software needed for success.Cloud-based supercomputers will enable enterprises to train, deploy and scale large AI models, such as cutting-edge generative AI and recommender systems.
The AI supercomputer will be the first public cloud to utilize Nvidia's AI stack, featuring tens of thousands of A100 and H100 GPUs, 400 Gbps InfiniBand networking, and the NVIDIA AI Enterprise software suite.
Nvidia AI As A Service
Nvidia's leadership in AI and ChatGPT is inspiring great interest among business leaders, according to CEO Jensen Huang. Additionally, the chipmaker recently unveiled a cloud service that will enable companies to utilize its GTX machines for artificial intelligence processing through simple browser access.Nvidia's AI as a Service will offer data centres the capability to utilize its graphics chips, networking products and software for cloud-based AI applications. This service reduces the need for companies to construct their own infrastructure through partnerships with Oracle, Microsoft and Google.