Nvidia's Rubin Architecture Hits Full Production Six Months Early
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 15h ago
0mins
Source: Yahoo Finance
- AI Chip Shortage Alleviation: Nvidia's Rubin architecture has hit full production six months ahead of schedule, which is expected to significantly alleviate the AI chip shortage and meet the strong demand from cloud infrastructure customers, thereby driving sales growth for the company.
- Cost Efficiency Improvement: The new architecture delivers up to a 10x reduction in inference token costs and a 4x decrease in GPU requirements, which will greatly enhance the efficiency of AI training and inference, strengthening Nvidia's competitive edge in a fierce market.
- Strong Cloud Demand: Microsoft reported a 40% year-over-year growth in its Azure cloud services but still faces capacity constraints, indicating that the demand for Nvidia's AI chips remains robust and is likely to create substantial revenue opportunities for the company.
- Increased Investment Appeal: Nvidia's stock trades at a compelling 25 times next year's expected sales, and combined with strong market demand, this highlights its attractiveness as an investment opportunity, potentially drawing more investor attention.
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.
