The development of artificial intelligence will cause the value of Nvidia’s stock to grow again

Nvidia shares fell in October 2022 due to the company’s continued weakness in gaming and data centers; Of course, advertising related to ChatGPT and Generative artificial intelligence caused this downward trend to disappear.

Nvidia considered AI SaaS as a fundamental change to the business model. With SaaS services, this company will provide customers with access to its artificial intelligence training supercomputer.

ChatGPT Inc OpenAI and Google’s Bard chatbot uses deep learning generative networks (GAN) to create new content that humans cannot recognize. GANs use two types of neural networks in which a new content generator is created and a discriminator evaluates that content and then provides feedback to the generator. Thus, GANs evolve gradually.

Morgan Stanley recently upgraded Nvidia shares to Overweight and set a price target of $304 per share. This figure indicates a 19% increase compared to the current price of Nvidia shares ($255). Currently, each share of this company is traded at a price of around $260.

Joseph Moore, Morgan Stanley analyst, notes that Nvidia has not experienced favorable conditions recently in the field of gaming and data centers; But now the development of artificial intelligence has improved the situation of this company.

to report WccfTech, the artificial intelligence model of the ChatGPT generator uses about 10 GHz of Nvidia A100 graphics processor, the price of which reaches about 100 million dollars. The power of each of these processors is equivalent to 6 petaflops.

In addition, it is expected that the number of graphics processors to provide the processing power of ChatGPT commercialization will reach more than 30 thousand units. Thus, Nvidia’s return to the AI ​​SaaS business model may soon become a reality.

Joseph Moore He stated that even with the existing problems in the field of artificial intelligence, it will be very difficult to ignore Nvidia’s stock.

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