Nvidia (NASDAQ:NVDA) notched up in Tuesday afternoon’s trading session thanks to a new report about its H100 graphics processing unit (GPU) chips. They’re the most powerful chips Nvidia has come out with to date, and they’re also putting up some impressive numbers on performance as verified by independent sources.
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The H100 chips were tested by MLCommons, a self-described “open engineering consortium” that seeks to “…benefit society by accelerating innovation in machine learning”. Noble enough, but what about the numbers? Well, as it turned out, MLCommons found out that Nvidia’s H100s were faster than any other chips currently available when it comes to training computers on large language models, one of the fundamental building blocks of AI as well as machine learning.
Good news for Nvidia, especially as GPUs become more vital to computing, but Nvidia is also ramping up its AI pursuits in another direction. Nvidia also recently teamed up with Snowflake (NASDAQ:SNOW) to produce new advancements toward generative AI. The duo will work toward producing large language models—convenient that Nvidia’s chips are some of the best around for that—that will allow companies to use proprietary data to produce results. With the generative AI market projected to be worth around $100 billion, having a piece of that market could mean major adjustments in earnings. Not to mention share prices.
Nvidia stock currently remains a Strong Buy, thanks to 30 Buy ratings against just two Holds. Meanwhile, Nvidia stock also offers investors 11.88% upside potential thanks to its average price target of $464.85.
