Nvidia Acquires SchedMD to Expand AI Software Ecosystem
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Market Leadership: Nvidia holds approximately 90% of the AI infrastructure market share with its GPUs, positioning itself as a core player that will continue to benefit from the growing AI demand over the next decade.
- Strategic Acquisition: By acquiring SchedMD, Nvidia gains control over the Slurm open-source software platform, ensuring efficient management of its chips in AI workloads and further solidifying its software moat.
- Technology Integration: Nvidia's technology licensing agreement with Groq will allow it to integrate language processing units (LPUs) designed specifically for AI inference, enhancing its competitiveness in the inference market, particularly in terms of cost efficiency.
- Industry Collaboration: Taiwan Semiconductor Manufacturing, as the world's largest semiconductor manufacturer, anticipates AI chip demand to grow at a compound annual growth rate of over 40%, and Nvidia's close partnership with TSMC will ensure chip production capabilities meet market needs.
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 255.63 USD with a low forecast of 185.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
40 Analyst Rating
38 Buy
1 Hold
1 Sell
Strong Buy
Current: 186.500
Low
185.00
Averages
255.63
High
352.00
Current: 186.500
Low
185.00
Averages
255.63
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
