Latest news with #NvidiaOmniverse
CNBC
3 days ago
- Business
- CNBC
We're raising our Nvidia price target after a great quarter and rosy guidance
Nvidia shares jumped in extended trading Wednesday evening after the AI chipmaker reported better-than-expected quarterly revenue and earnings. It also provided an upbeat view of its current second quarter despite restrictions on what it can sell to China. Revenue in its fiscal 2026 first quarter increased 69% year over year to $44.06 billion, beating the $43.31 billion the Street was looking for, according to estimates compiled by data provider LSEG. Adjusted earnings per share increased 57% year over year to 96 cents in the three-month period ended April 27, exceeding the consensus of 93 cents, LSEG data showed. Both EPS and the quarterly estimate excluded charges related to the H20 chip ban in China. Why we own it Nvidia's high-performance graphic processing units (GPUs) are the key driver behind the AI revolution, powering the accelerated data centers being rapidly built around the world. But Nvidia is more than just a hardware story. Through its Nvidia AI Enterprise service, Nvidia is building out its software business. Competitors : Advanced Micro Devices and Intel Most recent buy : Aug 31, 2022 Initiation : March 2019 Bottom line Nvidia's results are proof that there has been no slowdown in the buildout of AI. During the post-earnings conference call, CEO Jensen Huang pointed out four positive surprises since the company's annual GTC event in March that have driven a surge in demand. The first surprise was advancements in reasoning AI, which is included in popular large language models like ChatGPT. According to Huang, reasoning models are creating a step function surge in inference demand, which in turn increases the demand for chips because they are extremely compute-intensive. Another positive surprise was the rescinding of the so-called AI diffusion rules, which ended right at the same time that countries woke up to the importance of AI as an infrastructure, according to Huang. A third positive surprise was the development of enterprise AI agents, which he called "game-changing." The fourth and last surprise is related to industrial AI, and all the on-shoring manufacturing and the building of plants around the world, creating demand for the Nvidia Omniverse. These are important callouts, as they underscore the rapid pace of advancements in artificial intelligence, which continues to drive strong demand for Nvidia's chips. The growing integration of AI into everyday life further reinforces this trend. This is clear evidence that the AI story is still in its early innings. NVDA YTD mountain Nvidia YTD Accordingly, we're raising our price target to $170 from $165. But given Nvidia's rapid 55% stock rise from its 52-week low on April 4 through Wednesday's close of $134, we are keeping our hold-equivalent 2 rating. In after-hours trading, shares added another 5%. Commentary Heading into earnings , some of our key questions centered on the Blackwell ramp, Sovereign AI, hyperscaler demand, and developments in China. 1. Blackwell : After some early supply chain issues, the ramp of the new Blackwell superchip called GB200 has gone well. Despite the vast complexities of building it, Nvidia saw a significant improvement in manufacturing yields and an increase in rack shipments to customers. Blackwell contributed 70% of the $34.16 billion of data center compute revenue in the quarter. Overall, data center revenues, which also included networking sales, increased 73% year over year to $39.1 billion, slightly missing estimates of $39.36 billion, according to FactSet. Nvidia is always innovating its chipsets, making them more powerful and efficient with every new iteration, but also backwards compatible. The next product on its roadmap is the Blackwell Ultra or GB300. The company said samplings of these systems began earlier this month at the major cloud service providers, and it expects production shipments to start later this quarter. Nvidia is anticipating a smooth ramp of the Blackwell Ultra based on what it learned from Blackwell. 2. Sovereign AI: During the call, Huang called Sovereign AI "a new growth engine" for the company as countries around the world build out national AI factories. " Countries are racing to build national AI platforms to elevate their digital capabilities," the CEO said. Later, he likened the need for countries to invest in AI infrastructure to their past investments in electricity and the internet. Rules on how countries are purchasing AI chips from Nvidia have been dynamic lately, with President Donald Trump ending the AI diffusion rules in favor of a new policy to promote AI tech with trusted partners. One way is through trade agreements, like what we saw out of the Middle East a few weeks ago. Next up could be Europe. Huang said he will be traveling through the continent next week and " just about every country needs to build out AI infrastructure and there are umpteen AI factories being planned." 3. Hyperscalers : There's been no let-up or digestion in demand from the so-called hyperscalers, which is another term for large data center and cloud service providers like Alphabet and Oracle as well as Club names Amazon , Microsoft , and Meta Platforms . They all signaled alongside, their latest earnings reports, their intentions to keep spending aggressively on AI. Nvidia said Wednesday that on average, major hyperscalers are each deploying nearly 1,000 NVL72 racks or 72,000 Blackwell GPUs per week and are on track to further increase output this quarter. One example that CFO Colette Kress gave was that Microsoft has already deployed tens of thousands of Blackwell GPUs, but that's expected to increase to the hundreds of thousands. 4. China : As for its business in China, Nvidia shipped out $4.6 billion worth of H20s prior to the new export licensing requirement. It was unable to ship an additional $2.5 billion of H20 revenue in the quarter. The export license changes, which went into effect in mid-April, caused the company to disclose it will record a $5.5 billion charge in the quarter tied to H20 inventory, purchase commitments, and "related reserves." In a bit of good news, Nvidia said Wednesday it only had to record a $4.5 billion charge this quarter, less than originally anticipated, because it was able to reuse certain materials. Nvidia said it is still evaluating its options to supply chips to the region in compliance with the U.S. government's export control rules. Reuters reported over the weekend that Nvidia is planning mass production of a new AI chip for China that is compliant with restrictions. Huang said on the earnings call that Nvidia does not have anything right now to announce, but the company is "considering it" and "thinking about it." Losing access to the China AI accelerator market would have a material adverse impact on Nvidia's business, Kress said on the earnings call, a market she thinks will grow to nearly $50 billion. Huang echoed that sentiment in an interview with Jim Cramer for Wednesday evening's "Mad Money." Huang said that trade with China is important if the U.S. wants to be the global AI leader. "There are so many developers there [in China], and because the world is going to adopt technology from one country or another — and we prefer it to be the American technology stack," the CEO told Jim. Guidance Looking at Nvidia's fiscal 2026 second quarter outlook, the company expects revenue to be approximately $45 billion, plus or minus 2%. This view was slightly below the consensus estimate of $45.9 billion, according to LSEG. However, it reflects a loss of approximately $8 billion in H20 revenue due to the export control limitations. Moving down the line, Nvidia expects fiscal Q2 adjusted gross margins of 72%, plus or minus 50 basis points. That's roughly inline with the 72.1% expected per FactSet. According to an earnings snapshot note from Truist, Nvidia's implied fiscal second quarter EPS guidance is 98 cents at the midpoint, one penny shy of the 99-cent consensus, according to LSEG. This is pretty solid considering the loss of sales of H20 chips in China. (Jim Cramer's Charitable Trust is long NVDA, AMZN, META, MSFT. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. 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Yahoo
14-05-2025
- Business
- Yahoo
Nvidia and AMD partner with Humain to develop AI data centres
Nvidia and Advanced Micro Devices (AMD) have partnered with Saudi Arabian AI company Humain to supply semiconductors for a large-scale data centre project. Humain, a subsidiary of Saudi Arabia's Public Investment Fund, aims to establish the Saudi Arabia as an international AI powerhouse by combining state-of-the-art infrastructure, advanced AI models, digital platforms, and human capital development. The company plans to build AI factories with a projected capacity of up to 500MW, powered by several hundred thousand of Nvidia's most advanced GPUs over the next five years. The first phase of deployment includes an 18,000 Nvidia GB300 Grace Blackwell AI supercomputer with NVIDIA InfiniBand networking. These hyperscale AI data centres are designed to provide a secure foundation for training and deploying sovereign AI models at scale, enabling industries in Saudi Arabia and globally to accelerate innovation and digital transformation. In addition, Humain will deploy the Nvidia Omniverse platform as a multi-tenant system to enhance the development of physical AI and robotics through simulation and operation of physical environments. Humain CEO Tareq Amin said: 'Our partnership with Nvidia is a bold step forward in realizing the Kingdom's ambitions to lead in AI and advanced digital infrastructure. 'Together, we are building the capacity, capability and a new globally enabled community to shape a future powered by intelligent technology and empowered people.' Additionally, AMD has signed an agreement with Humain to develop a strong AI infrastructure. This network of AMD-based AI computing centres will extend from Saudi Arabia to the US and aims to support a wide range of AI workloads across corporate, start-up, and government markets. The open-design AI superstructure will be optimised to power AI workloads across various markets. AMD will provide its AI compute portfolio and the AMD ROCm open software ecosystem, while Humain will manage the delivery of the hyperscale data center, sustainable power systems, and global fibre interconnects. The two parties have committed up to $10bn for the deployment of 500MW of AI computing power over the next five years. The collaboration is well underway, with initial deployments across key global regions. By early 2026, the partnership is expected to activate multi-exaflop capacity, supported by next-generation AI silicon, modular data centre zones, and a software platform stack focused on developer enablement, open standards, and interoperability. "Nvidia and AMD partner with Humain to develop AI data centres" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Business Journals
25-04-2025
- Science
- Business Journals
Florida Atlantic University receives Department of Defense grant, will acquire Nvidia technology
The school will use Nvidia technology that could eventually be used to help the Air Force modernize its national defense and space operations. Story Highlights Florida Atlantic University receives $800,000 grant for AI research. FAU will acquire Nvidia technology for autonomous AI systems development. Research aims to modernize Air Force defense and space operations. Florida Atlantic University is poised to obtain state-of-the-art technology from the chipmaker Nvidia after receiving an $800,000 grant from the U.S. Department of Defense Air Force Office of Scientific Research. FAU's Center for Connected Autonomy and Artificial Intelligence will use the grant to develop autonomous AI systems. That technology could eventually be used to help the Air Force modernize its national defense and space operations, said Dimitris Pados, principal investigator and director of the CA-AI. 'AI has far-reaching implications for the air and space forces within the U.S. Department of the Air Force,' he said. "Ensuring these systems are rigorously tested will be critical for their integration into operations, where precision, trust and adaptability are paramount." While generative AI models are trained on enormous amounts of text and image data, enabling them to generate language and communicate abstract concepts, they are limited when it comes to understanding the physical world. To build a physical AI system, researchers need to train autonomous machines in controlled environments. That can help robots perform complex physical tasks and facilitate interactions between machines and humans, FAU reports. The university will use the DOD funding to acquire Nvidia graphics processing units, chips that can handle intensive tasks such as graphics processing, renderings and AI. It will also use Nvidia infrastructure to develop virtual environments that represent the real world and generate data to train AI for robotics and wireless networks. FAU will also use cameras, LiDAR sensors and augmented reality/virtual reality headsets to collect and render video and images that will be used in photo generation software in the Nvidia Omniverse, a platform for building 3D applications. The platform will "enable new U.S. Department of Defense-related research opportunities such as test and evaluation of AI training datasets, learning with faulty and missing data, development of a digital spectrum twin for NextG communications and networking, simulation of schools of biorobotic fish or swarms of drones, among others,' said George Sklivanitis, co-principal investigator and professor at the FAU College of Engineering and Computer Science. For more stories like this one, sign up for Miami Inno newsletters from the South Florida Business Journal and the American Inno network.
Yahoo
29-03-2025
- Automotive
- Yahoo
Prediction: This Artificial Intelligence (AI) Company Will Be the Biggest Beneficiary of Self-Driving Vehicles (Hint: It's Not Tesla)
When thinking about how artificial intelligence (AI) is taking the world by storm, my mind almost instantly begins to think about how the technology is impacting fields like data analytics or drug discovery. While these use cases tend to fetch the most attention, AI has quietly been playing a major role in the automotive industry as well. From voice-recognition assistants to the rise of autonomous driving, AI is paving the way for the future of transportation. Let's explore how Nvidia (NASDAQ: NVDA) is involved with the automotive sector, and assess why I see the company as my top pick over Tesla at the intersection of AI and cars. Nvidia offers a number of products and services marketed toward the automotive industry. For example, the company's Omniverse platform allows companies to build digital twins of real-world environments to simulate how vehicles may operate under certain conditions (i.e., weather, traffic, pedestrians walking in the road). In addition, the Nvidia Halos system combines the make and model of a car with the appropriate hardware and software development needed in order to bring autonomous capabilities from prototype to functioning product. Nvidia's primary role in the automotive sector is to help bring a technology-driven layer to the car manufacturing process -- ushering in a new wave of safety and cost efficiencies. According to the company's website, Nvidia is lending its AI services to a number of top automotive businesses including Rivian, Toyota, BYD, Mercedes-Benz, and Hyundai. While this is impressive, I think Nvidia's most notable move in the car business took place earlier this month during the company's GTC conference. At the conference, Nvidia revealed that it partnered with General Motors to work on a number of AI-powered solutions for its cars. As part of the deal, GM will be using the Nvidia Omniverse, Cosmos, and DRIVE AGX platforms to build more advanced systems for drivers, as well as improve manufacturing efficiencies in GM's factories. The table below breaks down Nvidia's revenue from its automotive segment during calendar year 2024: Category Q1 Q2 Q3 Q4 2024 Automotive revenue $329 million $346 million $449 million $570 million $1.7 billion Data source: Nvidia. Revenue from Nvidia's automotive segment increased by 55% year over year in 2024. With that said, the $1.7 billion in revenue from this business only represents about 1% of Nvidia's total revenue last year. During the company's fiscal fourth-quarter earnings call, management guided for the automotive business to rise nearly threefold this year to $5 billion in revenue. Right now, the automotive segment is Nvidia's fastest-growing business outside of data centers. And yet even when accounting for this rapid scale, the automotive sales are barely even a fraction of Nvidia's entire operation. I see the new partnership with GM as a sign that more car businesses, especially legacy automakers that may have fallen behind in other catalysts fueling the automotive industry such as electric vehicles (EV), are looking for ways to level up and bring a new wave of growth supported by rising interest in AI. When it comes to AI and cars, I can't think of two other companies besides Nvidia and Tesla that have the most potential upside. While Tesla has made notable progress in its autonomous driving ambitions, there's a pretty solid argument to be made that the company's future hinges on widespread adoption of its self-driving car software. Without AI, an investor could argue that Tesla is simply another car manufacturer and less so a technology business. The automotive industry is highly competitive and many companies are forced to compete on price in order to spur demand and sales. In the long run, a strategy like that can diminish profit margins and stifle innovation. On the other hand, I see Nvidia as more of an insulated opportunity when it comes to AI and cars. Should more vehicles come equipped with AI-powered services, I think Nvidia has an obvious opportunity to parlay its existing partnerships with car manufacturers to expand its overall presence in the automotive sector. In other words, a long-term investment in Tesla may require strong conviction that the company pulls off its autonomous driving vision. By contrast, Nvidia doesn't necessarily need Tesla in order to succeed -- as the company has the luxury of partnering with a host of car businesses around the world that are looking to build their AI roadmaps. For these reasons, I see Nvidia as the bigger beneficiary of autonomous driving and AI-powered services in the car industry relative to the competition. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $284,402!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $41,312!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $503,617!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of March 24, 2025 Adam Spatacco has positions in Nvidia and Tesla. The Motley Fool has positions in and recommends Nvidia and Tesla. The Motley Fool recommends BYD Company and General Motors. The Motley Fool has a disclosure policy. Prediction: This Artificial Intelligence (AI) Company Will Be the Biggest Beneficiary of Self-Driving Vehicles (Hint: It's Not Tesla) was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
25-03-2025
- Business
- Yahoo
Cognizant and Nvidia collaborate to accelerate AI adoption
Cognizant has announced a strategic collaboration with AI chipmaker Nvidia aiming to accelerate the adoption of AI technologies across various industries. The partnership will leverage Nvidia's advanced AI capabilities to drive innovation in five key areas. During the Nvidia GTC 2025 event, Cognizant outlined its plans to enhance its offerings in enterprise AI agents, industry-specific large language models (LLMs), digital twins for smart manufacturing, foundational infrastructure for AI, and the functionality of its Neuro AI platform. Cognizant's Neuro AI Multi-Agent Accelerator, powered by Nvidia's NIM microservices, is set to enable clients to rapidly build and scale multi-agent AI systems. These systems will support adaptive operations, real-time decision-making, and personalised customer experiences. The platform also allows seamless integration of third-party agent networks and most LLMs, providing greater flexibility for businesses adopting AI solutions. The partnership's primary goal is to integrate Nvidia's AI technology across Cognizant's enterprise technology stack, with active client engagements underway in multiple industries. The partnership integrates Nvidia's AI technologies such as Nvidia NIM microservices, Nvidia NeMo, Nvidia Omniverse, and Nvidia RAPIDS, into Cognizant's AI ecosystem to deliver scalable solutions. Additionally, Cognizant is developing multi-agent systems with integrated Nvidia technologies, including Nvidia Blueprints and Nvidia Riva speech AI. The systems are designed with modularity and adaptability, incorporating security guardrails and human oversight. Industry-specific use cases include automated insurance claims processing, appeals and grievances handling, and supply chain management. Cognizant Core Technologies and Insights president Annadurai Elango said: 'We continue to see businesses navigating the transition from proofs of concept to larger-scale implementations of enterprise AI. 'Through our collaboration with Nvidia, Cognizant will be building and deploying solutions that accelerate this process and scale AI value faster for clients through integration of foundational AI elements, platforms and solutions.' In October 2024, Cognizant partnered with pharmaceutical company Alnylam Pharmaceuticals to serve as a primary technology services provider to scale IT operations. "Cognizant and Nvidia collaborate to accelerate AI adoption" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
