Nvidia Unveils Next-Gen AI Supercomputer Rubin, Cost Per Token Reduced to One-Tenth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 9h ago
0mins
Source: Fool
- Market Leadership: Nvidia's strategy to release new hardware annually, an acceleration from its previous two-year cycle, is underscored by CEO Jensen Huang's remarks on skyrocketing Blackwell GPU sales and sold-out cloud GPUs, indicating robust market demand and sustained growth potential.
- Technological Innovation: The newly launched Rubin platform reduces the cost per token to one-tenth of Blackwell's, which is expected to attract more developers, enhance profitability, and accelerate AI model adoption, further solidifying Nvidia's leadership in the AI sector.
- Chinese Market Opportunity: Although management has not included potential sales to Chinese customers in its guidance, it has instructed its foundry partner to produce H200 chips to meet anticipated high demand, reflecting the company's confidence in the Chinese market and future growth expectations.
- Partnership Expansion: Serve Robotics, utilizing Nvidia's Jetson Orin platform, has expanded its fleet of delivery robots twentyfold in the past year, demonstrating strong synergies with partners like Uber, which propels the application and market penetration of physical AI.
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: 185.040
Low
185.00
Averages
255.63
High
352.00
Current: 185.040
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.
