Tuesday Nov 14 2023 19:46
3 min
On Monday, tech powerhouse Nvidia unveiled its latest AI chip, the H200 Tensor Core GPU, setting the stage for intensified competition in the tech industry and propelling Nvidia stock to new heights.
NVDA shares closed up 0.6% on Monday at $468.20, marking the stock’s ninth consecutive day of gains, as well as its longest winning streak since December 2010, when it rose for 10 straight days, as per Dow Jones Market Data.
The H200 chip boasts 141 gigabytes of memory and promises significant performance enhancements —up to 60% to 90% — compared to its predecessor, the H100, especially in tasks like AI model inference. Nvidia's hardware partners and major cloud service providers, including Amazon Web Services, Google Cloud, Microsoft's Azure, and Super Micro, are expected to offer H200-powered systems in the second quarter of 2024.
“With Nvidia H200, the industry’s leading end-to-end AI supercomputing platform just got faster to solve some of the world’s most important challenges,” said Ian Buck, Nvidia’s vice president of hyperscale and high-performance computing.
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Nvidia's Graphic Processing Units (GPUs) have become a cornerstone for training AI models and serving clients, with the H100 becoming available in large volumes earlier this year priced around $25,000 per unit. As noted by Barron’s correspondent Tae Kim, the product has quickly become “the technology industry’s most precious resource as rising excitement over generative artificial intelligence created product shortages.”
While AMD's upcoming MI300 AI product has generated anticipation for inference applications, it remains uncertain how these chips will compare to Nvidia's revamped H200.
Nvidia's shift to a one-year cadence for AI chips, as indicated in a recent investor presentation, signals a strategic move towards more frequent, higher-performance product launches. This approach poses a challenge for competitors but bodes well for Nvidia's market position and stock value.
Nvidia's stocks have seen a remarkable surge this year, riding the wave of investor interest in AI-related investments. The company's shares have rallied by 232%, putting Nvidia on track for its strongest performance since 2001. Recent news of cancelled Chinese chip orders appear to have done little damage to the stock, as the NVDA rally has continued over the past several weeks.
The shares appear on track to blow by their peak in August, with Monday’s closing price just 1.5% below the high of $493.55. Nvidia is gearing up to unveil its third-quarter earnings after the market closes on November 21, and the outcomes hold the potential to propel the stock to achieve new record highs.
As of November 14, NVDA was rated a Strong Buy according to 38 analysts surveyed by TipRanks offering 12-month Nvidia stock price forecasts. The average price target stands at $647.32 (a potential 33.14% upside from the recent price of $486.20), with a high forecast of $1,100.00 and a low forecast of $560.00.
At the time of writing, Nvidia stock was up close to $12 (2.48%) in premarket trading, on course to open Tuesday at a fresh all-time high of over $498.
When considering shares for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.
Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
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