Investing.com
Published Mar 29, 2023 17:21
Updated Mar 29, 2023 17:53
By Ketki Saxena
Investing.com – It’s been a busy week for Nvidia, with analysts upping their price targets as the company makes a strong foray into AI, outlined at its GPU Technology Conference.
The conference hosted hundreds of panels and presentations, including a conversation between NVDA CEO Jensen Huang's and OpenAI co-founder Ilya Sutskever.
Analyst commentary has since then focused on three pillars in Nvidia’s software, specifically AI Enterprise, Omniverse, and the DRIVE sim.
Here’s what analysts are saying:
“NVDA is quite literally the nexus of AI”
“We see NVDA’s ability to provide AI capabilities and an expansive software stack alongside its hardware as a key differentiated solution with the ability to train AI in the data center to deliver high-performance centralized in-care computing.”
“This is a significant advantage for NVDA relative to AMD, considering the shift in the industry towards FP8 training and inference.”
"In our view, the software businesses are highly value added to NVDA's customers and also likely higher growth with more profitability metrics."
"Each of the 3 strategic software businesses help customers transition into new transformative areas that drive either revenues or dramatic levels of cost saving”
“Nvidia's AI solutions will continue to penetrate the enterprise market."
"The LLM training TAM does not appear all that big today (10's to 100's of millions of dollars annually?) quite a bit smaller than LLM inference (which we sized in the multiple 10's of billions) as training does not scale the same (i.e. the model, once trained, works, and if re-training is needed the infrastructure is already in place).”
“But models are getting bigger, and we are early on the adoption curve; over time we believe the TAM could potentially reach into the billions as model complexity grows and adoption widens."
"We expect NVDA's valuation to increase based on near-term data center strength, receding gaming headwinds, and greater traction in inference and software markets”
Written By: Investing.com
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