Nvidia (NASDAQ:NVDA) is a known manufacturer of graphics processing units (GPUs). Lately, though, the company has made GPUs that can be deployed to power generative artificial intelligence (AI) applications. As a result, Nvidia’s AI angle has piqued significant interest from some analysts, many of whom have started issuing positive ratings on NVDA stock. It appears that Nvidia could be a winner of the AI arms race.
Recently, Nvidia has made a number of announcements and declarations relating directly to AI. For instance, the company revealed that Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Cloud is integrating Nvidia’s L4 Tensor Core GPU.
Furthermore, Nvidia CEO Jensen Huang recently declared that generative AI will expand from a “single digit” portion of the company’s revenue during the past year to a “quite large” portion of revenue in the coming year. The CEO also declared that generative AI has “triggered an inflection point in technology.”
Some Analysts Are Bullish on NVDA Stock Due to AI Angle
At a recent GPU Technology Conference (GTC), Nvidia revealed products with AI angles, such as the company’s DGX cloud service. Analysts were duly impressed with these products. For example, Needham analyst Rajvindra Gill walked away from the event “incrementally more positive” about the company’s story. Gill has a “buy” rating and a $270 price target on NVDA stock.
Clearly, some experts on Wall Street are bullish on Nvidia’s foray into AI, including products that facilitate generative AI applications. JPMorgan analyst Harlan Sur stated that the GTC event secured the company’s “dominant AI leadership position.” Sur reiterated a $250 price target and “overweight” rating for NVDA.
Meanwhile, Oppenheimer analyst Rick Schafer observed that “Rapid adoption of OpenAI’s Chat-GPT3 has provoked a sense of urgency among various companies/industries.” Schafer says Nvidia is “looking to accelerate every facet” of this. The analyst issued a $275 price target and an “outperform” rating on shares.
NVDA stock is up 3% this morning and has generally been on an uptrend so far in 2023. Perhaps there’s more upside ahead as the company makes an aggressive move into next-gen AI technology.
On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.