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Wall Street welcomed Nvidia’s new AI products and services.
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Nvidia
announced a set of new products and clients to further drive demand for artificial intelligence. Wall Street likes it.
At its most recent GPU Technology Conference or GTC, the company (ticker: NVDA) unveiled products like the DGX cloud service, which allows enterprises to rent AI computing capacity on a monthly basis, and partnerships with
Adobe
and others who plan to co-develop new AI models.
Analysts’ reactions to
Nvidia
‘s Tuesday announcement were enthusiastic to say the least.
“We came away…incrementally more positive on the NVIDIA story,” Needham’s analyst Rajvindra Gill wrote in a Wednesday note, rating the stock Buy. He expects strong demand for the coming DGX H100 AI computer systems, which promise to deliver faster natural language processing.
Gill has a $270 target for the price, implying a 3% gain from current trading levels.
J.P. Morgan
‘s veteran tech analyst Harlan Sur said the event cemented Nvidia’s “dominant AI leadership position” and reiterated his Overweight rating and $250 target for price on the stock in a note Wednesday.
AI has been creating a buzz in the tech sector over the past few months with an expanding list of companies joining the race after OpenAI released its conversational bot ChatGPT late last year. Nvidia has attempted to be the one-stop solution provider offering chips that can help train large-language models used by bots, databases used for recommendation systems, and renting computing capacity.
“Rapid adoption of OpenAI’s Chat-GPT3 has provoked a sense of urgency among various companies/industries,”
Oppenheimer
‘s Rick Schafer wrote in a note Tuesday. And “NVDA is looking to accelerate every facet.”
Schafer also reiterated his Outperform rating and target of $275.
Write to Karishma Vanjani at karishma.vanjani@dowjones.com
