Nvidia Stock Prediction 2030 Is Promising As Citi Claims After Report OpenAI May Change Chip Suppliers
Oct 10, 2023
Nvidia stock prediction 2030 is optimistic. However, Nvidia stock has been under pressure following a recent report that OpenAI is considering plans to drop Nvidia as a supplier. However, there are still compelling reasons to remain positive on Nvidia.
OpenAI, a pioneer in artificial intelligence financed by Microsoft (MSFT), whose introduction of the ChatGPT chatbot ignited an AI investing frenzy, is reportedly investigating developing its own AI chips, according to Reuters late last Thursday, citing unnamed sources. According to the report, OpenAI is also looking into solutions like collaborating more closely with chip manufacturers like Nvidia (NVDA) or diversifying its suppliers outside of the company to help meet the growing demand for AI.
In order to fuel the complex computation that drives artificial intelligence, Nvidia is a leading developer of graphics processing units (GPUs) and application-specific integrated circuits (ASICs). Due in large part to the chip maker’s exposure to AI, its financial performance this year has increased significantly, with Nvidia stock surging more than 210% since the start of January.
Citi analysts stated in a Friday note that they anticipate Nvidia will maintain its 0% share of the AI GPU market for the next 2-3 years. According to the experts, the Reuters claim, if true, would not be shocking — and would be consistent with the idea that GPUs and ASICs will be required to build up key infrastructure in AI.
According to specialists, ASICs will be utilized largely for smaller, more specialized models. In comparison, GPUs will be used for training and inference of larger/more complicated models, making Nvidia stock prediction 2030 favorably strong.
At 10:23 a.m. on Monday, Nvidia stock was down 2.2%, behind the S&P 500 and the Nasdaq Composite, down 0.2% and 0.5%, respectively.