Nvidia’s newest chip has a secret weapon in the AI race (NVDA)

business news

  • Nvidia’s Volta GPU was announced to much fanfare.
  • The company has since started shipping its Volta chips to data centers.
  • The Tensor Core units of the chips provide Nvidia with a distinct advantage over its competition.


When Nvidia announced its Volta graphics processing units, the stock jumped about 17.8% in a single day.

Now, as the first chips are being sold into the data center market, their competitive advantage is becoming clear.

“A key differentiator for Volta is its Tensor cores, which enable it to process matrix multiplication operations in a highly efficient manner – key for neural network training,” Mark Lipacis, an analyst at Jefferies, said in a recent note to clients.

The Volta chips are being bought by data centers because the centers are the main training grounds for the growing artificial intelligence trend. GPUs, like Nvidia’s Volta series, help speed up the training process of artificial intelligence systems, specifically by allowing for faster matrix multiplication.

GPUs differ from more traditional CPUs by having hundreds or even thousands of smaller “cores” that can perform small operations, compared to the typically much smaller number of more powerful cores (4-8 in many modern machines) found in CPUs. 

Nvidia’s Tensor cores are specifically designed to be speedy AI system trainers, and are 12 times faster than the company’s previous series of chips, according to Nvidia. It’s AI prowess could lead to an outsized share in the growing data center and AI markets, said Lipacis.

Lipacis estimates that Nvidia’s revenues will grow 30% year over year in 2017, and 15% in 2018. Because of the success of Volta, he raised his price target for Nvidia to $230, about 16.7% higher than the company’s current price.

Nvidia is up 97.75% this year.

Here’s everything you need to know about Nvidia before investing.

SEE ALSO: Investing in Nvidia all boils down to one question

Join the conversation about this story »

NOW WATCH: A $6 trillion investment chief reveals the one area of the stock market to avoid

Комментариев нет

Добавить комментарий

Этот сайт использует Akismet для борьбы со спамом. Узнайте как обрабатываются ваши данные комментариев.

business news
Trump’s trade fight and the unwinding of a $3 billion bet are clobbering copper

Copper prices on the London Metal Exchange slipped below $6,000 for the first time in a year Thursday. Analysts say trade escalations are weighing on a market already under pressure. An unwinding of a $3 billion long position put pressure on prices earlier this month.  Follow copper in real time …

business news
Trump threatens to slam a massive tariff on European cars, which could cause economic chaos

President Donald Trump on Friday threatened to impose a 20% tariff on imports of cars from the European Union. The move would be a huge escalation of Trump’s ongoing trade conflict with the EU. Trump already hit Europe with steel and aluminum tariffs, angering EU leaders and triggering retaliation. President …

business news
Bitcoin’s rough patch looks like the Nasdaq during the tech bubble — except it’s moving 15 times faster

Bitcoin fell as much as 70% from its mid-December high through its recent early-February low. The cryptocurrency’s price chart mirrors that of the Nasdaq Composite Index during the dotcom bubble era, but there’s a catch. Historical fluctuations in the Nasdaq should provide a template for how bitcoin will trade going …