By Tae Kim
Nvidia’s progress in the enterprise AI space is just beginning and the opportunity there will drive growth, says Baird.
On Friday, analyst Tristan Gerra reiterated his Outperform rating and $1,050 price target on Nvidia, citing optimism over the company’s full range of AI products for corporations.
He expects Nvidia to discuss its AI offerings for enterprises next week at the company’s GTC developers’ conference.
“Enterprise solutions will likely represent a strong theme at GTC,” he wrote. “AI adoption at enterprise is at a very early cycle, boding well for the sustainability of the AI ramp, with no competition so far.”
In Friday’s trading, Nvidia stock was down 0.9% to $871.26.
Nvidia is also beginning to release chips at a faster pace. In October, management indicated that the company has moved from a two-year product cycle to a one-year cadence for its AI data-center portfolio. An updated investor presentation showed the B100, the follow-up to the H100, would be released in the coming quarters.
The B100 is code-named Blackwell. Gerra expects Nvidia will announce the details behind the new chip architecture next week.
“We expect [B100 will be] a very significant step up in performance specs versus [the current] H100,” he said.
Write to Tae Kim at tae.kim@barrons.com