NVIDIA has positioned itself as one of the frontrunners among technology companies racing to integrate advanced artificial intelligence (AI) tools into their products. This strategic move has propelled the company’s stock to surge, with a remarkable 20% increase recorded on Thursday alone.
While there are no pure-play AI stocks available, as publicly-traded companies engaged in AI also offer other business offerings, NVIDIA has garnered recognition as a prominent leader in the field despite being in a similar position.
Impressively, NVIDIA’s stock has witnessed a staggering 113% year-to-date growth as of the close of Wednesday’s trading session. This remarkable performance outpaces the growth of other major tech and AI players, such as Google and Microsoft, who experienced a 30% increase in their share prices during the same period. Following NVIDIA’s earnings call after the market closed on Wednesday, its share price surged by as much as 28% in after-hours trading, solidifying its position as the world’s most valuable chipmaker and the fifth most valuable company on Wall Street.
“Generative AI is catalyzing an exponential surge in computational requirements, propelling a rapid shift towards Nvidia accelerated computing—a paradigm that excels in versatility, energy efficiency, and the attainment of the lowest total cost of ownership for training and deploying AI,” stated Colette Kress, Chief Financial Officer and Executive Vice President of Nvidia. “The ascendancy of Generative AI has generated substantial upward momentum in the demand for our products, engendering diverse opportunities and fostering comprehensive global growth across all markets.”
Nvidia is deeply engaged in numerous facets of AI, encompassing the production of semiconductors, cutting-edge graphics processing units (GPUs), and application programming interfaces (APIs) employed in supercomputers and machine learning applications. Both GPUs and APIs play crucial roles in training machine learning models, necessitating sophisticated semiconductors, or computer chips, to generate the computational power indispensable for processing vast volumes of data.
Kress elucidated that several prominent technology companies offering cloud data storage solutions, including Google Cloud, Oracle Cloud, and Microsoft Azure, are witnessing “robust demand” from “pioneering entities in generative AI” and are deploying Nvidia’s tools to cater to this demand effectively.
“The enterprise demand for AI and accelerated computing is robust. We are witnessing substantial momentum across verticals such as automotive, financial services, and telecom, where AI and accelerated computing are rapidly becoming essential components of customers’ innovation roadmaps and competitive positioning,” stated Kress.
Nvidia AI Enterprise boasts a comprehensive suite of over 100 frameworks, pre-trained models, and development tools designed to cater to diverse tasks, including expediting data science operations and facilitating AI model development.
Furthermore, Kress highlighted specific use cases where prominent organizations are leveraging Nvidia tools. Bloomberg, for instance, utilizes Nvidia’s tools to support a massive 50 billion parameter model, while AT&T collaborates with Nvidia to enhance fleet dispatching systems, enabling their field technicians to provide superior customer service.
In addition to these partnerships, Nvidia has formed a strategic alliance with Microsoft. As part of this collaboration, Nvidia will integrate AI software tailored for enterprise applications into Microsoft’s Azure Machine Learning platform, empowering Azure customers to swiftly construct and deploy customized applications.
Kress emphasized the transformative impact of this collaboration, stating that it has elevated Windows into an optimal platform for creators and designers harnessing the power of generative AI to enhance their creative output and overall productivity.
It should be noted that Reuters has contributed to the content of this report.
