Nvidia’s (NASDAQ: NVDA) shares have experienced an extraordinary surge, catapulting more than 240% since the onset of 2023.
This climb not only establishes Nvidia as the best-performing large-cap stock within the S&P 500 index but also underscores the profound impact of its pivotal role in the generative artificial intelligence (AI) domain. As the driving force behind the processing units fueling cutting-edge AI technologies like OpenAI’s ChatGPT, the chipmaker commands a staggering 80% share of the GPU market.
The insatiable demand for its chips has not only elevated Nvidia’s sales to unprecedented heights but has also ignited substantial investor enthusiasm.
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Adding to this momentum, the tech giant is set to unveil its latest high-end AI chip on November 13, signaling yet another strategic move to further capitalize on this unique opportunity.
New AI chip to ship in Q2 2024
On Monday, November 13, Nvidia unveiled H200 – the latest addition to its GPU family designed specifically for training and deploying AI models that are driving the GenAI craze.
The new product represents an upgrade from the H100 – a chip that OpenAI used to train its most sophisticated large language model (LLM), GPT-4.
According to estimates by Raymond James, the older H100 chips cost between $25,000 and $40,000, and it takes thousands of them working together to generate the biggest models in the process known as “training.”
The new one, H200, includes 141 gigabytes (GB) of next-gen HBM3 memory that will let the chip perform “inference,” or use a large model after it is trained to produce text, images, or predictions.
Per Nvidia, the H200 will generate output almost twice as fast as its predecessor, based on a test using Meta’s (NASDAQ: META) Llama 2 LLM. The new chip is expected to ship in Q2 2024.
Nvidia stock price analysis
At the time of writing, NVDA was trading at $488.40 after climbing over 1% on the day, at the time of publication.
The AI-related stock gained more than 6.6% over the past five sessions and around 7.3% on the month. Year-to-date, its share price more than tripled.
Given the company’s vital role in the AI boom and its dominance in the high-end GPU market, Nvidia remains well-positioned to sustain investors’ interest during this latest technological revolution.
Meanwhile, Nvidia is set to post its latest earnings results after the market closes on November 21. This report will be closely examined by investors and analysts, who will look for clues about how have the company’s AI chips been performing in terms of sales over the past three months, as well as the chipmaker’s own sales expectations going forward.
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