Nvidia stock surged higher on Tuesday after the graphics-chip maker announced new data center processors optimized for artificial intelligence applications.
At the SC23 supercomputing conference in Denver on Monday, Nvidia introduced its HGX H200 AI computing platform and GH200 Grace Hopper Superchip.
In an address at the conference, Ian Buck, vice president of Nvidia's high performance computing and hyperscale data center business, described the Nvidia HGX H200 as "the world's leading AI computing platform."
The H200 is the first AI accelerator to use an advanced memory technology called HBM3e. The system provides nearly double the capacity and 2.4-times more bandwidth compared with its predecessor, the Nvidia A100, the company said in a news release.
H200-powered systems from the world's leading server manufacturers and cloud service providers should begin shipping in the second quarter of 2024.
Nvidia Stock Is In Buy Zone
"For Nvidia, we see this announcement as insulating its substantial leadership position in the AI silicon space," Wedbush Securities analyst Matt Bryson said in a client note. He rates Nvidia stock as outperform with a price target of 600.
Meanwhile, the company's GH200 Superchip is faster and more energy efficient than its predecessor, Nvidia said. Some server manufacturers will begin shipping systems with the new processor by the end of the year, Nvidia said in a news release.
On the stock market today, Nvidia stock rose 2.1% to close at 496.56. NVDA stock now has risen for 10 consecutive trading days. That is its longest winning streak since December 2016, when it also rose for 10 straight trading sessions.
On Nov. 9, Nvidia stock broke out of a double-bottom base at a buy point of 476.09, according to IBD MarketSmith charts. The 5% buy zone extends to 499.89.
Nvidia Rivals State Their Case
Rival chipmakers Advanced Micro Devices and Intel also promoted their AI products at SC23.
Intel showcased its Data Center GPU Max Series, Gaudi 2 AI accelerators and Xeon processors.
Meanwhile, AMD touted its Epyc server processors and Instinct AI accelerators at the conference.
Nvidia stock is on three IBD lists: IBD 50, Leaderboard and Tech Leaders.
Plus, Nvidia is one of the Magnificent Seven stocks. The others are Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft and Tesla.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
