Nvidia Corp. on Tuesday announced a collaboration with VMware aimed at making artificial intelligence (AI) available for their users, through cloud, data-center, and edge-computing architecture.
According to the partnership terms, Nvidia (NVDA) will integrate its NGC software hub with VMware vSphere, Cloud Foundation and Tanzu platforms. The integration will help virtualization users deploy GPU-accelerated AI applications in existing hybrid cloud environments. The partnership also allows VMware to customize its offerings so that its software tools work smoothly with Nvidia’s AI technology.
In a blog published on its website, Nvidia stated that “Companies will no longer need standalone AI systems for machine learning or big data analytics that are separate from their IT resources. Now a single enterprise infrastructure can run AI and traditional workloads managed by VMware tools and administrators.” (See NVDA stock analysis on TipRanks)
On Sept. 21, Tigress Financial analyst Ivan Feinseth reiterated a Buy rating on the stock. In a note to investors, Feinseth said “strong business trends in Data Center and gaming demand combined with a new product introduction cycle continue to drive growth and profitability, which, along with the recently announced acquisition of ARM Holdings, further advances its industry leadership position.”
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 25 Buys, 4 Holds and 1 Sell. With shares up nearly 125% year-to-date, the average price target of $559.28 implies upside potential of another 5.7% to current levels.