NVIDIA Increases Investment in Photonics Technology
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Source: CNBC
- Photonics Investment: Since March, NVIDIA has invested $2 billion in companies like Lumentum, Coherent, and Marvell to advance photonics technology, aiming to enhance AI infrastructure performance and efficiency, thereby maintaining a competitive edge in a rapidly evolving market.
- Silicon Photonics Expansion: CEO Jensen Huang announced at the GTC conference that NVIDIA is scaling its silicon photonics capacity, indicating that significantly higher technological capabilities will be required to meet market demands, which will greatly enhance the computational power and response speed of its products.
- Manufacturing Challenges: Analysts from 650 Group highlight that the rapid growth of photonics technology will face challenges in supply chain and manufacturing capabilities, especially with surging demand, potentially requiring one to two product generations to adapt to the new technology.
- AI System Adaptation: Analyst Gil Luria noted that existing AI systems will need significant redesign to incorporate optical components, a process that may extend product update cycles, but successful implementation will significantly improve the performance and efficiency of AI models.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 214.250
Low
200.00
Averages
264.97
High
352.00
Current: 214.250
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
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.
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