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solzberg in Gainers & Losers,

NVIDIA stock to hit $40 mark in medium term

I remain upbeat about the shares of NVIDIA, the world leading producer of 3D graphics processors and related software. Recently, the company recently unveiled a super-fast graphics chip Tesla P100 for deep learning that promises to make a splash in the artificial intelligence (AI) space.

Tesla P100, based on NVIDIA’s next generation Pascal architecture, is claimed to be the biggest chip ever made. The chip is built on the 16-nanometer fabrication node and features over 15 bn transistors. Moreover, with NVIDIA’s NVLink high-speed GPU interconnect, up to eight Tesla P100 GPUs can be interconnected to maximize application performance in a single node. The company claims that the Tesla P100 GPU accelerator delivers best performance for high-performance computing, deep learning and many intensive computational workloads at data centers.

Apart from Tesla P100 GPU, the company also introduced its supercomputer, DGX-1, disinged for deep learning. DGX-1 combines two Intel INTC Xeon processors and eight Tesla P100 GPU accelerators with 16GB memory per GPU and is capable of 170 teraflops of performance.

Deep learning is currently a hot trend in the tech space as it helps machines to analyze data and make better decisions. Therefore, several big technology companies like Facebook, Microsoft and Alphabet are grabbing a share of the pie either through acquisitions or in-house research. And the introduction of Tesla P100 may help NVIDIA to become one of the largest players in the machine learning arena. Furthermore, by expanding its business avenues, the company will be able to reduce its dependency on the PC industry which is currently declining.

I expect that NVIDIA’s shares will continue to rise and reach $40 mark in medium term.