- NVIDIA (NASDAQ:NVDA) stock rises over 172 per cent year-to-date
- The company released on Monday a wide range of new AI-focused products
- Monday’s announcement comes following the company’s anticipated Q2 2023 revenue, which is well above Wall Street’s expectations
- NVIDIA stock closed Monday at $389.46, up from $143.15 from the year’s market open on January 4
The NVIDIA stock is having quite a year.
Case in point, year-to-date the NVIDIA (NASDAQ:NVDA) stock price has soared by over 172 per cent — from US$143.15 on January 4 to $389.46 as of market close on Monday.
In line with its price increase, the tech giant revealed on Monday a wide range of new AI-focused products as the shift towards AI continues to accelerate.
NVIDIA stock soars on news
On Monday, the company unveiled several new AI-related products at the 2023 Computex event in Taipei, Taiwan.
Over a two-hour presentation, NVIDIA CEO Jensen Huang demonstrated several AI devices. These included the Nvidia DGX GH200 and the Nvidia ACE.
The Nvidia DGX GH200 is powered by the NVIDIA GH200 Grace Hopper Superchips and the NVIDIA NVLINK’s Switch System. It also combines 256 GH200 superchips that can act as a single GPU.
The company says this allows for roughly 500 times more memory than its previous generation NVIDIA DGX A100.
“Generative AI, large language models and recommender systems are the digital engines of the modern economy,” Huang said. “DGX GH200 AI supercomputers integrate NVIDIA’s most advanced accelerated computing and networking technologies to expand the frontier of AI.”
Further, DGX GH200 intends to help tech companies develop similar technologies to the widely popular AI chatbot, ChatGPT.
Meanwhile, the Nvidia ACE is a custom AI model service. Nvidia Ace transforms games by bringing intelligence to non-playable characters through AI-powered language interactions.
“Generative AI has the potential to revolutionize the interactivity players can have with game characters and dramatically increase immersion in games,” John Spitzer, vice president of developer and performance technology at NVIDIA, said in a statement. “Building on our expertise in AI and decades of experience working with game developers, NVIDIA is spearheading the use of generative AI in games.”
On Monday trading, the NVIDIA stock price rose 2.54 per cent to close at $389.46.
What’s more, NVIDIA stock also rose following the company’s revenue guidance for its AI-powered GPU chips. Last week, the company added nearly $200 billion in valuation to its market cap.
For instance, the company increased its Q2 2024 forecast to $11 billion — a far cry from Wall Street’s $7 billion estimate. The demand for AI and the company’s AI chips is contributing to the company’s rising stock price.
As the NVIDIA stock continues on its path towards domination in the AI market, experts, too, believe the company is showing no signs of slowing down.
Based on 36 Wall Street analyst projections on TipRanks.com, NVIDIA stock is ranked a “Strong Buy.” The company has an average 12-month price target of $434.76; a high forecast of $600 and a low forecast of $230.
Lastly, the average NVIDIA stock price target of $23. This is an 11.63 per cent increase from the company’s last price of $389.46.
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