Nvidia is well-positioned to lead the artificial intelligence (AI) arms race, according to Bank of America.
The bank’s analysts said in a note on Thursday that Nvidia has “the most comprehensive portfolio” for AI applications and could benefit from increased demand for its products as more companies adopt AI technology.
“We believe NVIDIA is best positioned among semiconductor peers to capitalize on the growth opportunities associated with AI,” Bank of America analyst Vivek Arya wrote in the note. He added that Nvidia’s “comprehensive portfolio across hardware, software and services should enable it to capture share gains.”
Nvidia has been investing heavily in developing new technologies related to AI over the past few years, including autonomous driving systems and data centers designed specifically for machine learning tasks. The company also recently announced plans to acquire chipmaker Mellanox Technologies Ltd., which would give it access to additional resources needed for further development of its AI capabilities.
Bank of America believes this investment will pay off in the long run, as more companies look towards using AI solutions for their businesses. According to Arya, there are several areas where Nvidia can gain market share: cloud computing, high performance computing (HPC), gaming and automotive applications. He noted that these markets are expected to grow at a compound annual growth rate (CAGR) of 17%, 15%, 8% and 5%, respectively over the next five years – providing ample opportunity for Nvidia’s expansion into them.
Arya also highlighted how Nvidia’s GPUs have become increasingly popular among researchers working on deep learning projects due their ability process large amounts of data quickly – something traditional CPUs cannot do efficiently enough yet. This gives Nvidia an edge when it comes competing against other chipmakers such as Intel or AMD who don’t specialize in GPU production like they do – making them better suited than anyone else when it comes delivering powerful solutions tailored specifically towards deep learning tasks..
In conclusion, Bank of America believes that if all goes according plan then Nvidia could be one step ahead when it comes leading the charge within this rapidly growing industry – especially given their current investments into research & development along with acquisitions made by them recently which will help strengthen their position even further going forward . With so much potential still left untapped within this sector , we can only wait & see what kind innovative products & services they come up with next!
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