Chipmaker NVIDIA Corporation is seeing fresh optimism from Wall Street following its GTC Conference yesterday. NVIDIA's annual conference was a jam-packed event, with the firm making key announcements ranging from new products for a variety of industries to key partnerships with other firms. The Santa Clara, California-based graphics processing unit (GPU) designer has been at the forefront of the technology industry these days even as its bread-and-butter gaming market falters in the wake of the supply-demand mismatch ushered in by inflation and the coronavirus pandemic. However, there might be good news soon for NVIDIA's gaming segment as well, according to research from Raymond James, as it joins Bank of America in praising NVIDIA after yesterday's GTC.
NVIDIA Share Price Target Raised To $310 from $275 By Bank of America
NVIDIA's slew of announcements made at the GTC covered the very edges of the computing industry. Traditionally a personal computing firm, the company has successfully positioned itself at the heart of modern enterprise and cloud computing. The GTC outlined its plans to further build on this strategy. These plans included a new product for quantum-classical computing, a new software library for lithography and six new graphics processing units (GPUs) for laptops and desktops.
Perhaps the most surprising announcement out of these was the NVIDIA DGX Quantum. While the company and its chief Mr. Jensen Huang have not shied away from expressing enthusiasm for the growth in accelerated and edge computing and the pivotal role that NVIDIA can play in it, they've nevertheless been relatively quiet on the quantum computing front, an avenue thought by many to be the future of the industry once physical limitations of building modern day semiconductors and transistors come in play.
According to NVIDIA, the DGX Quantum combines its Grace Hopper CPU-GPU combo for accelerated computing and artificial intelligence applications with the OPX+ quantum controller developed by the Israeli firm Quantum Machines. The OPX+ can run real-time quantum experiments, including waveform generation and acquisition. Combined with Hopper, it will be deployed at an Israeli Quantum Computing center later this year.
These, and other announcements, were on Raymond James' mind as it issued a new investor note following the GTC conference. The firm believes that Cloud computing offers NVIDIA an incremental annual revenue opportunity of $1 billion annually for the next couple of years, and crucially, it points out that checks in Asia indicate that NVIDIA's crucial Gaming division is on its road to recovery. NVIDIA's latest financial results, which outlined its performance for the fourth quarter of the fiscal year 2023, saw gaming revenue pick up sequentially by 16% - indicating that the worst might be over for the beleaguered segment.
NVIDIA's DGX Cloud AI infrastructure is priced at $37,000 for each instance used each month, with Raymond James anticipating that the real world uses cases for generative artificial intelligence technologies such as ChatGPT to further boost demand for the firm's products At the same time, Raymond James also expects NVIDIA's automotive pipeline to continue delivering growth in the future as its agreements with car markers start to mature. Raymond James has a Strong Buy rating for NVIDIA's shares.
It was joined by various other Wall Street firms in today's first set of price target upgrades, with analysts from Deutsche Bank, BMO Capital, Mizuho, Bank of America, Wells Fargo, Truist and Oppenheimer all increasing their share price targets for NVIDIA.
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