Credit Suiss:e : Nvidia is the “leading chip AI enabler

Credit Suiss:e : Nvidia is the “leading chip AI enabler

San Francisco, 3/7/2023

When it comes to artificial intelligence, Nvidia is the top choice among US semiconductor companies, according to a Credit Suisse report.

Analysts at the bank have a price target of $275 for the chipmaker, up 18.5% from the report’s publication date of March 2. Shares are up more than 60% so far this year as the excitement surrounding ChatGPT has fueled hype around artificial intelligence stocks.

Starting out with graphics chips for video games, Nvidia is now making chips for AI applications ranging from autonomous vehicles to robots.

According to Credit Suisse, Nvidia is the “leading chip AI enabler. The graphics processing units are at the heart of AI development and machine learning. Meanwhile, the GPU controls vAlone

this year the share price increased by 60 percent.

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this year the share price increased by 60 percent.

While chips from competitors like Intel control the bulk of the workload for AI inference — the answers chatbots produce from users‘ prompts — Nvidia’s chips are increasingly gaining market share in this market as well, analysts said, due to their superior performance.

„We anticipate that GPUs, and NVDA GPUs in particular, will continue to take a share of the AI inference market over time,“ they added.

Additionally, Nvidia’s software will be its „competitive moat“ in AI, keeping other companies at bay, Credit Suisse said.

Technologies.Much of today’s AI is developed on Nvidia-built programs — like CUDA libraries — that can only work on their GPUs.

That plus Nvidia’s enterprise AI software, which essentially serves as the operating system for the AI, will be very difficult for competitors to replicate, even if they can match the company’s hardware.

„While hardware secured NVDA’s leadership in AI chips, we believe software will allow NVDA to maintain that position,“ the report reads.

Nvidia has estimated that its total addressable market for AI is $600 billion, of which $300 billion is hardware and $300 billion is software.

Credit Suisse is not alone in its upward movement. Nvidia will be the dominant computing engine driving AI and the cloud sector for the next decade, Alger vice president Ankur Crawford said last month.en südwestlich von San Antonio liegt.