According to Bank of America, shares of microchip manufacturing giant Nvidia, which recently joined the trillion-dollar club, have a growth potential of 26% after a record jump of 170% since the beginning of the year, as reported by Business Insider.
This forecast is based on the recent launch of the DGX GH200 AI supercomputer, which will strengthen Nvidia’s leadership in the AI race.
The bank acknowledges Nvidia’s unique position in the market, with capabilities in AI, software, business scalability, supply expansion, and a wide base of developers.
The bank has confirmed its “Buy” rating on the company’s stock and raised the target price from $450 to $500 after Nvidia introduced several new products, including an AI supercomputer.
Nvidia has begun full-scale production of the H100 and HGX H100 servers, which are being sold on eBay for over $45,000, and its microchips are helping to create generative AI language models such as OpenAI’s ChatGPT and Alphabet’s Bard.
The new DGX GH200 AI supercomputer combines up to 256 GH200 super microchips, with companies like Microsoft, Meta*, and Alphabet being the first to gain access to these microchips.
Thanks to its comprehensive approach, Nvidia has become a data processing hub, as its infrastructure includes GPU chips, and it collaborates with over 1600 startups in the generative AI field.
