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RXRX using Nvidia processors looks to have vertical potential
Melius Research Raises Price Target on NVIDIA to $1,125 From $1,000, Buy Rating Maintained
Why Nvidia Stock Is STILL a Bargain for Long-Term Investors
There are many reasons to focus on Nvidia as a future AI winner, and here are three
2h ago · By Chris MacDonald, InvestorPlace Contributor
Nvidia (NVDA) recently bought GPU orchestration software provider Run.ai for $7900 million, expanding its AI capabilities.
The company’s move to improve on Microsoft’s Phi-3 mini language models is worth considering.
A variety of other companies are choosing Nvidia for both hardware and software, supporting its long-term thesis.
Elon Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
Nvidia - Why Nvidia Stock Is STILL a Bargain for Long-Term Investors
Source: Ascannio / Shutterstock.com
Nvidia (NASDAQ:NVDA) stock has seen a 16% drop this month, but remains a buy on the dips. Despite the recent decline, its year-to-date increase of 65% makes it one of the top AI stocks long-term investors continue to buy. Investors should focus on the company’s upcoming earnings report for insight into its growth outlook and AI spend.
The company is a leading AI supplier, providing hardware and software for AI development. Investors see Nvidia as a top pure-play option for this industry. Here are three catalysts to consider when analyzing Nvidia.
Elon Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
Run.ai Acquisition
Recently, Nvidia acquired Run:ai, an Israeli startup specializing in GPU orchestration software. This goal of this move appears to be to boost Nvidia’s AI computing resource management.
The deal details, including the acquisition cost, remain undisclosed. Run:ai provides an open platform built on Kubernetes, enabling efficient management of compute infrastructure across various environments.
The acquisition provides customers a centralized interface for managing shared compute infrastructure, streamlining access to AI workloads. Run:ai’s platform enables efficient GPU cluster resource utilization through pooling and sharing.
Nvidia plans to maintain Run:ai’s products and align its roadmap with its DGX Cloud AI platform, benefiting customers with generative AI deployments.
Since 2020, Run:ai has collaborated closely with Nvidia, and the acquisition solidifies this partnership. This acquisition aligns with NVIDIA’s AI infrastructure goals.
Biden’s Replacement Named?
Did Democrats just name Biden’s replacement for 2024?
Louis Navellier predicts this “shadow candidate” could upend the entire election.
Click here to reveal.
Improving Microsoft’s Phi-3
Nvidia announced plans to contribute to Microsoft’s (NASDAQ:MSFT) Phi-3 mini language model with the company’s TensorRT-LLM. This library optimizes large language model inference on NVIDIA GPUs, from PCs to cloud servers.
Phi-3 Mini handles 10 times larger models than its predecessor, Phi-2, making it suitable for broader applications. With 3.8 billion parameters and trained on 3.3 trillion tokens in just seven days, Phi-3 Mini introduces two variants, setting a new standard for handling more complex tasks with less compute resources required.
The integration of Phi-3 Mini extends to robotics and edge devices, offering efficient generative AI capabilities. With 3.8 billion parameters, Phi-3 Mini is perfect for edge devices, maintaining performance while conserving resources.
TensorRT-LLM supports Phi-3 Mini’s advanced context window, boosting throughput with optimizations like LongRoPE and inflight batching.
AI Popularity in Synthesia
Synthesia, an AI firm backed by Nvidia, introduced new AI-generated digital avatars that express human emotions from text inputs. These “expressive avatars” bridge virtual and real characters, aiming to cut costs in video production by eliminating cameras, actors, and lengthy edits.
Elon Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
Synthesia’s London studio trained the system with actors reading scripts in front of a green screen.
The video AI platform demonstrated AI-generated avatars responding to text input with corresponding emotions.
The technology serves over 55,000 businesses, including half of the Fortune 100. Synthesia, a unicorn firm, raised $90 million last year from investors like Accel and Kleiner Perkins.
Bottom Line
Overall, Nvidia remains the top option for investors looking to gain picks-and-shovels exposure to the AI race. The company’s hardware and software products are becoming increasingly integral to any operator in this space.
As Nvidia’s client base and market share grows, so too does its pricing power and market dominance.
Until AI spend cools down considerably, Nvidia is likely to have much more room to climb higher. This remains a top stock growth investors may want to buy on dips (it’s not expensive at all on a forward-looking basis, and I thought I’d never say that).
Meet the fund manager: Stephen Yiu on Meta, Nvidia and cashing in on the AI boom
BY:ELLIOT GULLIVER-NEEDHAM
Stephen Yiu, manager of Blue Whale Growth fund.
In this weekly series, investment reporter Elliot Gulliver-Needham sits down with a fund manager for a Q&A. This week, we’re hearing from Stephen Yiu, manager of Blue Whale Growoptith fund.
This is a transcript from an interview you can watch online. It has been edited for length and clarity.
How has your fund evolved since its launch?
So the fund was launched back in September 2017, and what has been quite interesting is that we started off investing a lot in digital transformations. I’m sure people will recall during the pandemic about e-commerce, digital advertising, software, cloud, digital payments, etc.
But what has changed is in 2022, we recognised there had been a regime change on the back of the Ukraine crisis and interest rates staying higher for longer. At the same time, geopolitical risks remain uncertain, so that will lead to certain reshoring opportunities.
Which stock in your portfolio are you most excited about right now?
I think one area that has not been well spoken about is our exposure within the semiconductor equipment space. We have both Lam Research and Applied Research in our top 10, and what these companies do is they sell mission critical equipment into the foundries.
If you’ve been reading the news about geopolitical uncertainty in Asia, currently Taiwan produces over 90 per cent of our high end semiconductors. So what has happened over the last couple of years is we started with the CHIPS Act in the US, which was about $50bn of tax subsidies, and we have the same amount of money in the European Union.
So we have over $100bn worth of tax subsidies to incentivise companies like Intel, TSMC, or Samsung to build new foundries anywhere outside of Taiwan, and if you are selling the mission critical equipment, you’re actually benefitting from some of the geopolitical uncertainty and you end up selling more of your equipment into the new foundries.
You’ve been a big advocate for Nvidia. How far do you see the company growing?
The reason Nvidia has managed to become so big today is about the opportunity for generative AI. So people would have used the likes of Chat GPT or Office 365 Copilot.
Without the GPU [graphics processing units] that Nvidia have got, we would not have any of the applications we’re talking about today. Everyone is paying Nvidia in order to power their applications.
We would not be surprised if at some point Nvidia is the biggest company in the world. Currently, it is only $1 trillion short of Microsoft, about $500bn short from Apple. It’s already bigger than Google and Amazon.
I think the question for us as an investment manager is about upside potential. So if you think Nvidia is going from $2 trillion to £3 trillion in a period of around two years, then you are making about 50 per cent.
So from our perspective, we always want to optimise our performance potential, so if we can make 50 per cent in two years, that’s great. But if we have something better that we can make 50 per cent in one year, then we would rather have a bigger position in that company.
The State Oil Fund of Azerbaijan (SOFAZ) has acquired shares in Tesla, Intel, Microsoft, Apple, NVIDIA, Amazon, and Meta
The State Oil Fund of Azerbaijan has invested in shares of global giants Tesla and Intel, according to a statement from the Fund.
AzeMedia
BY
AZEMEDIA
PUBLISHED APRIL 28, 2024
1 MIN READ
Gnfar
It is noted that the SOFAZ portfolio includes Tesla shares worth $84 million and Intel shares worth $31 million.
The total value of shares in the first quarter of this year amounted to $1.742 billion. Shares were also placed in the following companies:
Microsoft: $494 million
Apple: $419 million
NVIDIA: $371 million
Amazon: $279 million
Meta Platforms: $179 million.
The State Oil Fund of Azerbaijan (SOFAZ) has acquired shares in Tesla, Intel, Microsoft, Apple, NVIDIA, Amazon, and Meta
The State Oil Fund of Azerbaijan has invested in shares of global giants Tesla and Intel, according to a statement from the Fund.
AzeMedia
BY
AZEMEDIA
PUBLISHED APRIL 28, 2024
1 MIN READ
Gnfar
It is noted that the SOFAZ portfolio includes Tesla shares worth $84 million and Intel shares worth $31 million.
The total value of shares in the first quarter of this year amounted to $1.742 billion. Shares were also placed in the following companies:
Microsoft: $494 million
Apple: $419 million
NVIDIA: $371 million
Amazon: $279 million
Meta Platforms: $179 million.
Jim Lebenthal, chief equity strategist at Cerity Partners, buys more Nvidia
Morgan Stanley Is Doubling Down on Nvidia (NVDA) Stock
Wall Street remains as bullish on Nvidia as ever
45m ago · By Samuel O'Brient, InvestorPlace Reporter
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Nvidia (NVDA) is rising today on the news that Morgan Stanley (MS) has upped its bet on NVDA stock.
The investment bank sees big things ahead for the artificial intelligence (AI) leader.
NVDA stock is likely to keep rising as Wall Street enthusiasm continues to spread.
Elon Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
NVDA stock - Morgan Stanley Is Doubling Down on Nvidia (NVDA) Stock
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Wall Street’s enthusiasm for Nvidia (NASDAQ:NVDA) isn’t slowing down. The vast majority of analysts currently rate it as a “buy” and maintain bullish price targets. But one prominent financial institution just increased its bet on the artificial intelligence (AI) leader, seizing on the opportunity to acquire NVDA stock on a recent dip. Morgan Stanley (NYSE:MS) has staked an even bigger bet on the AI breakout sensation, which it currently maintains an “overweight” rating and $1,000 price target.
Nvidia I Sunday on 60 Minutes
No
Tesla stock should explode second half of 24
Let's see, good luck
JPM: "The collateral damage from META is negative for digital ad companies such as GOOG, SNAP, PINS, and ROKU but the AI-based capex spend is a positive for Semis/Hardware companies such as NVDA, VRT, SMCI"
Nvidia $NVDA CEO Jensen Huang just hand-delivered the first DGX H200 AI system in the world to OpenAI
$1500 coming, good luck
Ron Baron on $TSLA stock: "It's going to go up huge. Now is the bottom; Now they (Tesla) have compute to figure everything out. Now you're on the verge of autonomous driving with your car."
Tesla 3 is $299/month
Never changed battery since 2018, lasts over 500k miles
Elon: We are in talks about FSD licensing with one major auto manufacturer
Following Nasdaq?
NVDA +4.4%
Nasdaq + 1.6%
Expecting to build 3M cars at current capacity
Smart Summon
Tesla to launch new models ahead of planned timeline, shares jump
16:31:45 PM ET, 04/23/2024 - Reuters
(Add background in paragraphs 2-3)
April 23 (Reuters) - Tesla said on Tuesday it had pulled forward the launch of new models from the second half of 2025, sending its shares up nearly 7% in after-hours trading.
"This update may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times," the electric vehicle maker said.
Tesla did not elaborate on pricing of the new vehicles.
Reuters reported earlier that Tesla had canceled its long-promised inexpensive model that Chief Executive Elon Musk in January had predicted would be available in late 2025. The news organization reported that Tesla continues to develop robotaxis on the same small-vehicle platform.
Global growth in demand for EVs has eased, with sales expanding at lower-than-expected rates due to reductions in state subsidies and high interest rates.
SoftBank will reportedly invest nearly $1 billion in AI push, tapping Nvidia’s chips
PUBLISHED TUE, APR 23 20243:35 AM EDT
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KEY POINTS
SoftBank will invest 150 billion yen ($960 million) to bolster its computing facilities by 2025 in preparation for development of its own generative AI.
In addition to working on a less advanced model, the company will start developing a world-class generative intelligence model as early as next year.
Is Nvidia the Next $6 Trillion Tech Giant? Legendary Investor Sees Massive Upside Potential.
Nvidia shareholders should be happy employees just got some move Nvidia stock
19h ago · By Will Ashworth, InvestorPlace Contributor
Nvidia (NVDA) might be the leader in AI, but it’s also brilliant about rewarding employees with more Nvidia stock.
All stakeholders win if it gets to $6 trillion.
It shouldn’t be challenging for Nvidia to recruit top talent in the years ahead.
Is This Elon Musk’s Favorite A.I. Stock?
Nvidia stock - Is Nvidia the Next $6 Trillion Tech Giant? Legendary Investor Sees Massive Upside Potential.
Source: Ascannio / Shutterstock.com
Nvidia stock (NASDAQ:NVDA) has been one of my favorite companies for some time despite the fact that I’m not a techie. The company’s recent move to reward employees with additional Nvidia stock is one more example of why CEO and co-founder Jensen Huang is one of America’s finest leaders.
On April 1, Nvidia stock started its annual employee performance reviews. In those meetings, employees were notified that they would receive a “Jensen special grant,” a 25% boost in (RSUs) restricted stock units given to employees when they joined the company.
Discover one tiny Maryland company poised to be the next Nvidia
The RSUs will vest over 24 quarters, with the first bunch (6.25%) issued in September. The company is said to be doing this to ensure employees benefit even if its share price falls in the years ahead.
If this doesn’t tell you what kind of leader Huang is, nothing will. It’s one more reason to own the company over the long haul.
Here’s why.
A $6 Trillion Company?
Retired Wharton professor Jeremy Siegel, best known for his book Stocks for the Long Run, recently provided some commentary about Nvidia as a Senior Economist for WisdomTree (NYSE:WT).
In his March 11 commentary, Siegel suggested that NVDA stock could be worth as much as $6 trillion in the future, given its status as a momentum investment.
“The big question for Nvidia, and tech more broadly, is: are we in a 1996-97-like hype cycle where these stocks are still going to get even crazier as we did 24 years ago during the internet mania? There’s no way to answer that question now,” Siegel wrote.
“There could be 2-3x more upside in Nvidia if it follows Cisco’s valuation path to its peak. To be clear—this is not my prediction of what will happen—just to note as to what is possible in a mega bubble.”
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Stock Picking Legend’s #1 AI Pick of the Decade
Guys like Elon Musk, Mark Zuckerberg, Jeff Bezos are all making big moves into new AI tech as we speak.
But if you dig just a little bit beyond the headlines... you’ll see the real growth story is a tiny $3 AI stock at the heart of this $100 trillion wealth shift.
Click here to get the name and ticker symbol.
He says that in 2000, tech stocks were trading at 60x earnings. They’re about half that today, so an ongoing boom is more likely than a bust.
Talent Recruitment Should Remain High
Jensen Huang is smart. He knows that to continue reaping the rewards of a big bet on AI, B+Nvidia needs to continue recruiting top engineers and other talented tech people to keep the bus moving forward.
This 25% boost is akin to companies that become known for their special dividends. One special dividend might not attract the attention of most investors, but two or three in short order surely would.
The same applies to Nvidia’s Jensen special grant. The news of this extra benefit might get people’s attention for a few days or weeks, but the spotlight will fade. However, if it gives a second Jensen special grant in 2025, the word will get around that Nvidia’s the place to be if you want to be handsomely compensated for hard work.
Discover one tiny Maryland company poised to be the next Nvidia
As a result of Nvidia’s success, Jensen Huang is now the 20th wealthiest person in the world, with a net worth of $74.1 billion. It’s up by $30.1 billion in 2024 alone. His jump in wealth in 2024 is the second-highest, bested only by Mark Zuckerberg.
I have a friend who is quite wealthy and owns his own business. He didn’t want to rub it in with employees, so he drove to work in a beat-up Jeep, leaving his BMW at home to enjoy after work.
While not entirely the same idea, I’m sure Huang knows his good fortune and why it makes sense to spread it around. That’s Leadership 101.
In the Right Place at the Right Time?
Ultimately, while Huang has always been willing to make big bets on the future, he’s been able to execute these bets because of his employees. No leader of quality doesn’t believe this. It’s the only way to get from A to B successfully. To say that he’s enlightened would be an understatement.
“In the beginning, Nvidia sold these G.P.U.s to video gamers, but in 2006 Huang began marketing them to the supercomputing community as well. Then, in 2013, on the basis of promising research from the academic computer-science community, Huang bet Nvidia’s future on artificial intelligence,” The New Yorker’s Stephen Witt wrote in November 2023.
Discover one tiny Maryland company poised to be the next Nvidia
A decade later, Nvidia stock and its shareholders benefited greatly from his patient bet on AI.
There is no question this has little to do with luck but a passion for finding uses for microchips that will define tech’s future.
“I do everything I can not to go out of business,” Huang told Witt at Denny’s, where the CEO once worked as a dishwasher. “I do everything I can not to fail.”
What’s not to like?
Investing.com - Nvidia (NASDAQ:NVDA) and Super Micro Computer (NASDAQ:SMCI) have been among the main beneficiaries from the boom in AI interest, but they should retain a heavy weighting in individual portfolios for some time to come, according to legendary investor Louis Navellier
At 11:05 ET (15:05 GMT), Nvidia stock traded around 2% lower and Super Micro down over 10%, as investors took profits after stellar gains, with the former up 75% year to date and the latter over 200% higher.
“I know some people like to take profits, and that's fine, but for the bulk of our portfolios, we're going to be holding these stocks for a long, long time, said Navellier, chairman and founder of Navellier&Associates, which manages approximately $1.0 billion in assets, in a note.
Essentially, the speed of Nvidia’s AI chips is expected to double every year, and by the end of the decade, Nvidia’s AI processing speed is expected to be 11,800% higher than today.
Additionally, Nvidia launched a cloud service for researchers to test out their quantum-computing software. The Nvidia Quantum (NASDAQ:QMCO) QMCO Cloud will first comprise a data center stacked with AI chips and systems that together simulate a quantum computer.
Nvidia Stock Looks Too Cheap Here - Put Premiums are Very High and Worth Shorting
Mark R. Hake, CFA - Barchart - Sun Apr 21, 12:39PM CDT
Nvidia Inc. (NVDA) stock has taken a tumble since the end of March but it looks too cheap now. Moreover, its put premiums are sky-high. This makes them worth shorting both for income and with low buy-in strike prices. That applies to out-of-the-money puts whose near-term premiums are at very high levels.
NVDA stock closed at $762 on Friday, April 12, 2024, down $188.02 or 19.8% since March 25 when it was at $950.02. Moreover, on Feb. 22, the day after it released earnings on Feb. 21, NVDA stock was at $785.38. However, that was up $110.66 or 16.4% from the day before earnings came out.
The point is that the market seems to think Nvidia will face harder times in its AI chip-designing business. The problem is that doesn't line up with analysts' revenue forecasts, and by inference, its free cash flow (FCF) estimates.
NVDA Stock Looks Cheap Here
I have discussed this in several Barchart articles such as this one on March 29, “Nvidia Stock Could Still Be Worth 26% More at $1,141 - Good for Short-Put Plays by NVDA Investors.” And before that I wrote this article on Feb. 25, “Nvidia Stock Could Be Worth 42% More at $1,120 - Put Short Sellers Find This Attractive.”
In these articles, I projected sales and free cash flow (FCF) for Nvidia for the next year or longer. Based on the company's massive 50% FCF margins, it's possible to project a significantly higher valuation for the stock.
For example, analysts project $111.56 billion in revenue for the year ending Jan. 2025 and $136.17 billion for next year. So, sometime in the next 12 months (NTM), Nvidia will be on an average revenue run rate of at least $123.87 billion.
Therefore, if Nvidia keeps making 50% FCF margins as it did last quarter, free cash flow will be at least $61.9 billion (i.e., 0.50 x $123.87 billion). Even if it averages just 45% FCF margins, FCF will rise to $55.7 billion, which is still over twice the $26.95 billion it made in FCF last year.
If the market values NVDA stock at a 2.5% FCF yield metric, which is the same as a 40x FCF multiple, the stock's value will be between $2,228 billion and $2,476 billion. This is estimated by multiplying the 45% and 50% FCF margin estimates (i.e., $55.7b and $61.9b) by 40. So, the average estimate for Nvidia's market cap over the next 12 months is $2.352 trillion and potentially as much as $2,476 billion.
That average value is still 23.66% higher than its existing $1.902 trillion market cap today with an upper value that is 30.1% higher. In other words, NVDA stock is worth at least $942 per share (i.e., 1.2366 x $762), and could be worth as much as $991 per share or more. And next year, that valuation could rise as well if the company continues to make higher revenue and FCF.
Shorting OTM Puts
Right now NVDA stock, having dropped so far and fast, has very high put option premiums. This makes them worth shorting both as an income play, especially for existing investors, and also as a good entry point for new NVDA stock buyers.
For example, look at the May 10 expiration period, which is 3 weeks away. It shows that the $725 strike price, which is almost 5% below the price on April 12, is trading for $21.10 per share. Moreover, even the $710 strike, which is over 6.8% below today's price, has a $16.65 premium on the bid side.
That means that any short sellers of these put options can make immediate yields of 2.91% (i.e., $21.10/$725.00) and 2.345% (i.e., $16.65/$710.00) over the next three weeks. These are very high yields and provide very good downside protection to the short sellers.
For example, even if the stock falls to $710 by May 10, the investor, who is obligated to use the cash that was secured to do the short sale, still has a profit, since their breakeven price would be $710-$16.65, or $693.35 per share. That represents an expected return (ER) of 2.40% before commissions (i.e., $710/$693.35-1).
And the $725 strike price investor knows that no matter what, even if the stock falls to the strike price, his breakeven price is $725-$21.10, or $$703.09. If the investor does not already own NVDA stock they may be happy to continue holding it here at this cheap buy-in price. That is because they can see that it could be worth substantially more over the next 12 months if the company keeps generating strong FCF margins.
Downside Risk
Nevertheless, even if NVDA keeps falling, possibly from strong competition concerns, the investor has ways to improve their situation. For one, look at this play. The investor could short the $725 strike price put option and buy the $710 put as a long investment. That means that, given that the breakeven for the short sale is $720.55 per share (-i.e., $725-$16.65+$21.10).
That leaves the investor exposed to just the width between $710 and $720.55 over the next 3 weeks. That may be deemed an acceptable risk, especially if NVDA rebounds, given its strong FCF. Moreover, by May 21 the company is likely to report its quarterly earnings, so they may not find it unacceptable to keep holding the shares that they were obligated to buy.
One technique to narrow this potential risk is to manage the long-term purchase. If the stock starts to rise, it makes sense to sell the puts as they lose value.
In addition, even if the puts are exercised at the $725 strike price, the investor can later sell out-of-the-money calls. For example, in last month's article, I recommended shorting the $880 puts for $25.50 expiring on April 19, for a breakeven buy-in price of $854.50. Those puts were likely exercised, and the investor now has an unrealized loss of $92.50, or -10.8%.
So now, they can sell call options at say $20.00 (see the May 10 call option expiry chain) for the $810 strike price. Even if those are exercised the net loss is just $830.00 (i.e., $810+$20.00) - $854.50, or -$25.54, which is now a loss of just 3.0% (i.e., $-25.54/$854.50). If this is repeated one more time in another 3 weeks, the investor can potentially recover that loss.
Moreover, if they continue to short OTM put options, the investor can lower their buy-in price and gain extra income. The bottom line is that NVDA stock looks very cheap here and shorting OTM puts is a good way to buy in at a low price and also gain income.
NVIDIA To Collaborate With Japan On Their Cutting-Edge ABCI-Q Quantum Supercomputer
Muhammad Zuhair
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Apr 21, 2024 07:10 AM EDT
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NVIDIA To Collaborate With Japan On Their Cutting-Edge ABCI-Q Quantum Supercomputer 1
NVIDIA is all set to aid Japan in building the nation's hybrid quantum supercomputer, fueled by the immense power of its HPC & AI GPUs.
Japan To Rapidly Progressing In Quantum and AI Computing Segments Through Large-Scale Developments With The Help of NVIDIA's AI & HPC Infrastructure
Nikkei Asia reports that the National Institute of Advanced Industrial and Technology (AIST), Japan, is building a quantum supercomputer to excel in this particular segment for prospects. The new project is called ABCI-Q & will be entirely powered by NVIDIA's accelerated & quantum computing platforms, hinting towards high-performance and efficiency results out of the system. The Japanese supercomputer will be built in collaboration with Fujitsu as well.
RELATED STORY NVIDIA GeForce GTX 2070 GPU Engineering Sample Spotted: 2176 Cores Instead of 2304, Can Be Flashed With RTX 2070 vBIOS
Diving into what we can expect with Japan's ABCI-Q, NVIDIA stated in an earlier blog post that the firm plans to integrate its NVIDIA CUDA-Q platform into the system. This platform is an open-source resource that allows users to leverage quantum-classical applications. CUDA-Q will act as an integral part of the supercomputer, allowing the ease of integrating relevant CPUs and GPUs onboard. Moreover, Team Green plans to accommodate 2,000 of NVIDIA's H100 AI GPUs, which the latest NVIDIA Quantum-2 InfiniBand interconnects.
Researchers need high-performance simulation to tackle the most difficult problems in quantum computing. CUDA-Q and the NVIDIA H100 equip pioneers such as those at ABCI to make critical advances and speed the development of quantum-integrated supercomputing.
- Tim Costa, Director of HPC and Quantum Computing, NVIDIA
Japan's ABCI-Q supercomputer is a part of the country's technological innovation phase, where they plan on capitalizing on the benefits of current-gen technologies like quantum computing and AI to excel in mainstream consumer industries. A few months ago, NVIDIA's CEO Jensen Huang met Japan's President Fumio Kishida, and both of them talked about increasing collaboration across multiple sectors and providing a steady supply of AI equipment for Japan's needs. The unveiling of ABCI-Q is just a step ahead toward what seems like an extensive relationship between Japan and NVIDIA.
News Source: Nikkei Asia
Nvidia Stock Investors Just Got Some Bullish News From This Semiconductor Giant
Jose Najarro, The Motley Fool
https://finance.yahoo.com/news/nvidia-stock-investors-just-got-150000872.html
Here are Friday’s biggest analyst calls: Nvidia, Netflix, Shopify, Dell, Microsoft, Meta, Coca-Cola, Amazon & more
PUBLISHED FRI, APR 19 20248:38 AM EDTUPDATED 2 HOURS AGO
Michael Bloom
WATCH LIVE
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NVIDIA (NVDA) a Solid Buy as it Squashes Bubble Fears
April 19, 2024 — 08:19 am EDT
Written by Tirthankar Chakraborty for Zacks ->
After concluding 2023 on a high note, NVIDIA Corporation’s NVDA shares are off to a flying start this year. The pioneer in graphic processing units (GPUs) recorded the largest one-day gain in the history of Wall Street on Feb 22, banking on an artificial intelligence (AI) frenzy.
NVIDIA’s shares have skyrocketed 70.8% this year and have surpassed the Semiconductor – General industry’s gain of 48.5%. So far this year, NVIDIA has outshined other magnificent seven stocks and is now the third-largest company in the United States, lagging only behind Microsoft Corporation MSFT and Apple Inc. AAPL.
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However, NVIDIA’s stellar surge has made skeptics believe that the stock is in a bubble. After all, stretched valuations and any potential decrease in AI-linked demand for NVIDIA’s chips may lead to a significant decline in the stock price. But NVIDIA isn’t in a bubble! The company’s share prices aren’t gathering momentum based on speculation but due to strong fundamental factors.
The unquenchable demand for AI models is here to stay since it is a major driving force behind productivity gains across multiple industries. While Meta Platforms, Inc. META confirmed that the adaptation of AI tools has boosted returns from its ad campaigns, UBS Group AG UBS expects the integration of AI to drive productivity growth over the next three years.
Now, NVIDIA’s chips are required for AI models deployed across several verticals from manufacturing to cloud computing. This explains why NVIDIA’s H100 graphic cards are the most sought-after commodity in the AI chip market. Such massive demand, thus, has justifiably led to an uptick in NVIDIA’s revenues and earnings.
NVIDIA’s revenues for the fiscal fourth quarter came in at $22.1 billion, up a solid 265% from a year ago. For the quarter ending on Jan 28, 2024, the company’s earnings per share came in at $4.93, up a whopping 765% from a year ago. What’s more, the company’s data center business, which is involved in the production of the H100 graphic cards, was able to dismiss the negative impact of government restrictions on exporting AI semiconductors to China.
In reality, NVIDIA is expected to introduce the B200 Blackwell graphics card to the market. NVIDIA, in collaboration with Taiwan Semiconductor Manufacturing, will produce the powerful AI graphics card, which incidentally has received funding from the U.S. government. This explains why NVIDIA is cheerful about its forthcoming growth and expects revenues of $24 billion for the ongoing quarter, easily beating estimates.
But it’s just not about NVIDIA, the euphoria behind the broader AI-boom is not hype, unlike the dot-com era. Tech leaders are primarily involved in commercializing generative AI technology and they have more than double the market capitalization that companies had during the tech bubble in the late 1990s. Their profit margins and return on capital are also way more than the companies in the Internet bubble period. Hence, the strength in their underlying business validates the higher stock prices.
On this promising note, NVIDIA remains a market darling and razor-sharp investors should encash on its likely long-term upward movement. NVIDIA’s expected earnings growth rate for the current and next year is 84% and 14.1%, respectively. Its estimated revenue growth rate for the current and next year is 73.8% and 17.9%, respectively. The Zacks Consensus Estimate for NVIDIA’s current-year earnings has moved up 17.2% over the past 60 days.
To top it, NVIDIA’s net profit margin is an outstanding 48.9%, way more than the 20% threshold, signifying a high margin. This means the company is capable of generating the required profit from sales and has successfully kept operational costs under control. NVIDIA is also a cash-rich company making it immune to market upheavals. The company’s cash and cash equivalents were $25.98 billion as of Jan 28, 2024, up from $18.28 billion on Oct 29, 2023.
NVIDIA, rightfully, has a Zacks Rank #1 (Strong Buy) and a Growth Score of B, a combination that offers the best opportunities in the growth investing space.
Today would be smart
I try. Summer and fall should be very interesting
Nvidia stock could soar 81% if investors recognize its full potential as an AI ecosystem, rather than just a chipmaker, Evercore says
Matthew Fox Apr 17, 2024, 3:02 PM EDT
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Nvidia stock could soar 81% if investors realize that it's more than just a chip company, according to Evercore ISI.
The firm said Nvidia has morphed into an AI ecosystem play that could generate $69 per share in earnings power by 2030.
"We think investors underestimate the importance of the chip+hardware+software ecosystem that Nvidia has created," Evercore said.
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Nvidia stock still has big upside potential even after it's surged more than 200% over the past year, according to a note this week from Evercore ISI.
The firm initiated Nvidia at "Outperform" with a $1,160 price target, representing potential upside of 36% from current levels. And in its bull-case scenario, Evercore said Nvidia stock could surge to $1,540 in the next year, a jump of 81% from current levels.
Driving that lofty price target is the idea that Nvidia is much more than a chip company, but the bulk of investors still only see it as that.
"We think investors underestimate 1) the importance of the chip+hardware+software ecosystem that Nvidia has created, 2) that computing eras last 15-20 years and are typically dominated by a single vertically integrated ecosystem company, whose returns are measured in 100-to-1000 bagger range," Evercore's Mark Lipacis said.
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The key thesis behind Lipacis' bullish call is that Nvidia is an AI ecosystem play, and it's the clear leader in a new computing platform that will drive efficiency gains for years to come.
"That 'Ecosystem Play' typically captures 80% of the value created during its respective computing era, while other[s] compete for the other 20%," Lipacis said.
Lipacis expects Nvidia to capture 80% of the parallel processing market by 2030, which could be worth more than $350 billion. In such a scenario, Nvidia would have an earnings power of $69 per share by the end of the decade, compared to the company generating earnings per share of $11.93 last year.
"We believe that the Tectonic Shift to the current Parallel Processing / IoT Computing Era started 5-to-8 years ago, and that NVDA is the dominant ecosystem play in parallel processing, which is only in the beginning phases of generating outsized returns for its investors," Lipacis said.
Nvidia’s AI Bot Outperforms Nurses: Here’s What It Means For You
Robert Pearl, M.D.
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Apr 17, 2024,04:30am EDT
Nvidia Holds Its GTC: Artificial Intelligence Conference
Nvidia CEO Jensen Huang delivers a keynote address [+]
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Soon after Apple released the original iPhone, my father, an unlikely early adopter, purchased one. His plan? “I’ll keep it in the trunk for emergencies,” he told me.
At the time, he couldn’t foresee that this device would eventually replace maps, radar detectors, traffic reports on AM radio, CD players, and even coin-operated parking meters—not to mention the entire taxi industry.
Like most people, my father couldn’t imagine how a phone would completely transform our personal and professional lives. His was a typical response to revolutionary technology. We view innovations through the lens of what already exists, fitting the new into the familiar context of the old.
Generative AI is on a similar trajectory. While industries are investing billions in this technology to streamline processes, enhance operations and expedite R&D, even those well-versed in its capabilities find themselves stunned by AI’s breakneck progress. I count myself among them.
Six months ago, I began writing “ChatGPT, MD,” a book on the promise and perils of generative AI in medicine. Initially, I feared my optimism about the technology was too ambitious.
Based on its exponential growth projections—doubling in power every year—I envisioned it becoming a hub of medical expertise for doctors and patients within the next five years (at which point it will be 32 times more capable).
And yet, by the time my book published last week, I realized my estimated timeline might have been too conservative.
In March, Nvidia stunned the tech and healthcare industries with a flurry of announcements at its 2024 GTC AI conference. The California-based chipmaker, which owns 80% of the world’s semiconductor market, released a string of headline-grabbing products and partnership agreements that may radically change everything from diagnosis and care delivery to drug discovery and healthcare economics.
The most striking announcement came when Nvidia and Hippocratic AI revealed their collaboration on generative AI “agents,” which are said to surpass human nurses in performing a variety of tasks, and all at a markedly reduced cost.
According to company-released data, the AI bots are 16% better than nurses at identifying a medication’s impact on lab values; 24% more accurate detecting toxic dosages of over-the-counter drugs, and 43% better at identifying condition-specific negative interactions from OTC meds. All that at $9 an hour compared to the $39.05 median hourly pay for U.S. nurses. These AI nurse-bots are designed to make new diagnoses, manage chronic disease, and give patients a detailed but clear explanation of clinician’ advice.
These rapid developments suggest we are on the cusp of technology revolution, one that could reach global ubiquity far faster than the iPhone. Here are three major implications for patients and medical practitioners:
1. GenAI In Healthcare Is Coming Faster Than You Can Imagine
The human brain can easily predict the rate of arithmetic growth (whereby numbers increase at a constant rate: 1, 2, 3, 4). And it does reasonably well at comprehending geometric growth (a pattern that increases at a constant ratio: 1, 3, 9, 27), as well.
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But even the most astute minds struggle to grasp the implications of continuous, exponential growth. And that’s what we’re witnessing with generative AI.
Imagine, for example, a pond with just one lily pad. Assuming the number of lilies will double every night, then the entire pond will be covered in just 50 days. Yet, on day 43, you would see only 1% of the pond’s surface covered. It seems hard to believe that just seven days later, the lily pads will completely fill the pond.
Experts project that AI’s computational progress will double roughly every year, if not faster. But even with conservative projections, ChatGPT and similar AI tools are poised to be 32 times more powerful in five years and over 1,000 times more powerful in a decade. That’s equivalent to your bicycle traveling as fast as a car and then, shortly after, a rocket ship.
This rate of advancement proves challenging for both healthcare providers and patients to understand, but it means that now is the time to prepare for what’s coming.
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2. GenAI Will Be Different Than Past AI Models
When assessing the transformative potential of generative AI in healthcare, it’s crucial not to let past failures, such as IBM’s Watson, cloud our expectations. IBM set out ambitious goals for Watson, hoping it would revolutionize healthcare by assisting with diagnoses, treatment planning, and interpreting complex medical data for cancer patients.
I was highly skeptical at the time, not because of the technology itself, but because Watson relied on data from electronic medical records, which lack the accuracy needed to make reliable “narrow AI” diagnoses and recommendations.
In contrast, generative AI leverages a broader and more useful array of information sources. It not only pulls from published, peer-reviewed medical journals and textbooks but also will be able to integrate real-time information from global health databases, ongoing clinical trials, and medical conferences. It will soon incorporate continuous feedback loops from actual patient outcomes and clinician input. This extensive data integration will allow generative AI to continuously stay at the forefront of medical knowledge, making it fundamentally different from its predecessors.
That said, generative AI still requires a couple more generations before it can be widely used without direct clinician oversight. But Nvidia’s bold entry into healthcare signals a long-overdue willingness among tech companies to navigate the legal and regulatory hurdles of healthcare. Once an AI clinician chatbot is available, multiple other companies will quickly follow.
3. GenAI In Healthcare Will Be Ubiquitous (Hospital, Office And Home)
Just as my father never imagined that his iPhone (stored in his trunk) would evolve into an essential tool for navigating life, many Americans struggle to envision the transformative impact generative AI will have on healthcare.
The concept of accessing medical advice and expertise continuously—affordably, reliable, and conveniently around the clock—represents such a departure from current healthcare models that it’s easy for our minds to dismiss it as far-fetched. Yet it’s becoming increasingly clear that these capabilities are not just possible, but likely.
Daily, I receive feedback from both clinicians and patients who have interacted with current generative AI tools. The majority report that the responses, particularly when prompted effectively, align closely with clinician recommendations. This is a testament to the evolving accuracy and reliability of generative AI in healthcare settings, and it promises a revolution in medical care delivery in the near future.
A decade from now, we will look back at today’s skepticism in much the same way I think about my dad’s initial underestimation of his iPhone. We are on the cusp of a major shift, where generative AI will become as integral to healthcare as smartphones have become to daily life.
Demand for NVIDIA’s Blackwell Platform Expected to Boost TSMC’s CoWoS Total Capacity by Over 150% in 2024, Says TrendForce
16 April 2024 Semiconductors Frank Kung
NVIDIA’s next-gen Blackwell platform, which includes B-series GPUs and integrates NVIDIA’s own Grace Arm CPU in models such as the GB200, represents a significant development. TrendForce points out that the GB200 and its predecessor, the GH200, both feature a combined CPU+GPU solution, primarily equipped with the NVIDIA Grace CPU and H200 GPU. However, the GH200 accounted for only approximately 5% of NVIDIA’s high-end GPU shipments. The supply chain has high expectations for the GB200, with projections suggesting that its shipments could exceed millions of units by 2025, potentially making up nearly 40 to 50% of NVIDIA’s high-end GPU market.
Although NVIDIA plans to launch products such as the GB200 and B100 in the second half of this year, upstream wafer packaging will need to adopt more complex and high-precision CoWoS-L technology, making the validation and testing process time-consuming. Additionally, more time will be required to optimize the B-series for AI server systems in aspects such as network communication and cooling performance. It is anticipated that the GB200 and B100 products will not see significant production volumes until 4Q24 or 1Q25.
The inclusion of the GB200, B100, and B200 in NVIDIA’s B-series will boost demand for CoWoS capacity, leading TSMC to raise its total CoWoS capacity needs for 2024. The estimated monthly capacity by the end of the year is expected to reach nearly 40K—a staggering 150% year-over-year increase. By 2025, the planned total capacity could nearly double, with NVIDIA's demand expected to make up more than half of this capacity. Other suppliers, such as Amkor and Intel, currently focus on CoWoS-S technology and are primarily targeting NVIDIA’s H-series. With technological breakthroughs expected to be challenging in the short term, expansion plans remain conservative unless these suppliers can secure additional orders beyond NVIDIA, such as self-developed ASIC chips by CSPs, which might lead to a more aggressive expansion strategy.
NVIDIA and AMD’s AI development set to propel HBM3e into mainstream market dominance by the second half of the year
TrendForce has identified three major HBM trends for NVIDIA and AMD’s primary GPU products and their planned specifications beyond 2024: Firstly, the transition from HBM3 to HBM3e is anticipated. NVIDIA is expected to start scaling up shipments of the H200 equipped with HBM3e in the second half of 2024, replacing the H100 as the mainstream. Following this, other models such as the GB200 and B100 will also adopt HBM3e. Meanwhile, AMD plans to launch the new MI350 by the end of the year and may introduce interim models like the MI32x in the meantime to compete with the H200, with both utilizing HBM3e.
Secondly, there will be a continued expansion in HBM capacity to boost the overall computational efficiency and system bandwidth of AI servers. The market currently predominantly uses the NVIDIA H100 with 80GB of HBM, which is expected to increase to between 192GB and 288GB by the end of 2024. AMD’s new GPUs, starting from the MI300A’s 128GB, will also see increases, reaching up to 288GB.
Thirdly, the lineup of GPUs equipped with HBM3e will evolve from 8Hi configurations to 12Hi configurations. NVIDIA’s B100 and GB200 currently feature 8Hi HBM3e with a capacity of 192GB, and by 2025, the B200 model is planned to be equipped with 12Hi HBM3e, achieving 288GB. AMD’s upcoming MI350, to be launched by the end of this year, and the MI375 series, expected in 2025, are both anticipated to come with 12Hi HBM3e, also reaching 288GB.
TAIPEI, April 16 (Reuters) - Taiwan Semiconductor Manufacturing Co , the dominant producer of advanced chips used in artificial intelligence applications, is expected to report a 5% rise in first-quarter profit on Thursday thanks to strong demand.
The world's largest contract chipmaker, whose customers include Apple and Nvidia, has benefited from a surge towards AI that has helped it weather the tapering off of pandemic-led electronics demand and pushed TSMC's stock to a record high.
TSMC is set to report a net profit of T$217.2 billion ($6.71 billion) for the quarter ended March 31, according to an LSEG SmartEstimate drawn from 22 analysts. SmartEstimates give greater weighting to forecasts from analysts who are more consistently accurate.
That compares to the first-quarter net profit of T$206.9 billion last year.
TSMC last week reported a 16.5% rise in first-quarter revenue, beating market expectations and at the high end of the company's own guidance.
Eric Yao, a vice president at Taiwan's Eastspring Investments, which manages about T$90 billion of client assets in Taiwanese stocks, said the $6.6 billion in U.S. subsidies for TSMC's new Arizona plants augured well for its prospects of maintaining its lead in advanced process technologies.
"TSMC will likely continue to lead in that front, and Intel and Samsung will not have much chance to catch up," he said, referring to two rivals who want to challenge the company's dominance.
Intel this month disclosed deepening operating losses for its foundry business, a blow to the chipmaker as it tries to regain a technology lead it lost in recent years to TSMC, which also announced last week it would build a third fab in Arizona.
Fubon Securities analysts said they expected TSMC to revise up its outlook for AI demand for future years.
"TSMC previously indicated that AI could account for high-teens of its revenue by 2026, but based on our calculation, we think the target could be reached earlier in 2025."
The AI boom has helped drive up the price of shares in Asia's most valuable company, with TSMC's Taipei-listed stock having surged 36% so far this year to a historic high, compared with a 14% gain for the broader market.
TSMC is due to hold an earnings call at 0600 GMT on Thursday. ($1 = 32.3890 Taiwan dollars) (Reporting by Ben Blanchard and Faith Hung; Editing by Jamie Freed)
I remain bullish but don't trade short term