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NVIDIA (NVDA) Partners ODMs to Boost AI Cloud Computing
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Delving deeper into the booming artificial intelligence (AI) space, NVIDIA Corporation (NVDA - Free Report) recently partnered with Foxconn, Inventec, Quanta and Wistron, the world's largest original design manufacturers (ODM), to adhere to the growing demand for AI cloud computing. Financial terms of the deal have been kept under wraps.
Under the partnership, the ODM manufactures will use NVIDIA HGX reference architecture and its GPU computing technologies. Powered by NVIDIA Tesla GPUs and NVIDIA NVLink high-speed interconnect technology, the HGX provides flexibility toward deep learning training, inference, advanced analytics, and high-performance computing.
AI and its Adoption
HGX data center, which caters to AI techniques like machine learning, deep learning and natural language processing (NLP), has been used by companies like Microsoft (MSFT - Free Report) Facebook etc, to develop computer systems that can translate text into different languages and recognize objects in pictures.
According to the press release, “Using HGX, ODM partners can work with NVIDIA to more quickly design and bring to market a wide range of qualified GPU-accelerated systems for hyperscale data centers. Through the program, NVIDIA engineers will work closely with ODMs to help minimize the amount of time from design win to production deployments.’’
Why the Move
The deal comes at a time when NVIDIA is shifting focus from traditional desktop PC market to AI space. The company’s dependence on the PC market continues, and thus is being hurt by adverse conditions. The preliminary data released by Gartner showed that PC shipments in the quarter declined 2.4% year over year to 62.2 million units. The decline marked the 10th straight quarter of year-over-year fall, the longest in the history of the PC industry.
The global demand for AI computing technologies has increased immensely in the last one year. This has led to higher market adoption and performance of NVIDIA's GPU-computing platform. Currently, 10 of the world's top hyperscale businesses are using NVIDIA GPU accelerators in their data centers. With this deal, NVIDIA will be better positioned to enhance its hold in the AI technologies.
Bottom Line
Widely known for its video gaming chips, NVIDIA has pioneered the art and science of visual computing. With a singular focus on this field, the company offers specialized platforms for the gaming, automotive, data center and professional visualization markets. Its products, services and software deliver amazing experiences in virtual reality, artificial intelligence and autonomous cars.
We believe that NVIDIA’s innovative product pipeline and strength in gaming and high-end notebook GPUs keep it well positioned. The higher adoption of NVIDIA’s Tegra processors could act as a catalyst, going forward.
The recent partnership displays NVIDIA's determined focus on staying ahead of its rivals - Intel Corporation (INTC - Free Report) and Qualcomm Inc. - in the driverless car technology space. The competition in the industry has heated up with Intel's recent deal to acquire Mobileye N.V.MBLYfor $15.3 billion.
The stock has been clocking solid returns over the past one year and has gained 209%, outperforming the Zacks categorized Semiconductor-General industry's gain of just about 44.7%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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NVIDIA (NVDA) Partners ODMs to Boost AI Cloud Computing
Delving deeper into the booming artificial intelligence (AI) space, NVIDIA Corporation (NVDA - Free Report) recently partnered with Foxconn, Inventec, Quanta and Wistron, the world's largest original design manufacturers (ODM), to adhere to the growing demand for AI cloud computing. Financial terms of the deal have been kept under wraps.
Under the partnership, the ODM manufactures will use NVIDIA HGX reference architecture and its GPU computing technologies. Powered by NVIDIA Tesla GPUs and NVIDIA NVLink high-speed interconnect technology, the HGX provides flexibility toward deep learning training, inference, advanced analytics, and high-performance computing.
AI and its Adoption
HGX data center, which caters to AI techniques like machine learning, deep learning and natural language processing (NLP), has been used by companies like Microsoft (MSFT - Free Report) Facebook etc, to develop computer systems that can translate text into different languages and recognize objects in pictures.
According to the press release, “Using HGX, ODM partners can work with NVIDIA to more quickly design and bring to market a wide range of qualified GPU-accelerated systems for hyperscale data centers. Through the program, NVIDIA engineers will work closely with ODMs to help minimize the amount of time from design win to production deployments.’’
Why the Move
The deal comes at a time when NVIDIA is shifting focus from traditional desktop PC market to AI space. The company’s dependence on the PC market continues, and thus is being hurt by adverse conditions. The preliminary data released by Gartner showed that PC shipments in the quarter declined 2.4% year over year to 62.2 million units. The decline marked the 10th straight quarter of year-over-year fall, the longest in the history of the PC industry.
The global demand for AI computing technologies has increased immensely in the last one year. This has led to higher market adoption and performance of NVIDIA's GPU-computing platform. Currently, 10 of the world's top hyperscale businesses are using NVIDIA GPU accelerators in their data centers. With this deal, NVIDIA will be better positioned to enhance its hold in the AI technologies.
Bottom Line
Widely known for its video gaming chips, NVIDIA has pioneered the art and science of visual computing. With a singular focus on this field, the company offers specialized platforms for the gaming, automotive, data center and professional visualization markets. Its products, services and software deliver amazing experiences in virtual reality, artificial intelligence and autonomous cars.
We believe that NVIDIA’s innovative product pipeline and strength in gaming and high-end notebook GPUs keep it well positioned. The higher adoption of NVIDIA’s Tegra processors could act as a catalyst, going forward.
The recent partnership displays NVIDIA's determined focus on staying ahead of its rivals - Intel Corporation (INTC - Free Report) and Qualcomm Inc. - in the driverless car technology space. The competition in the industry has heated up with Intel's recent deal to acquire Mobileye N.V. MBLYfor $15.3 billion.
The stock has been clocking solid returns over the past one year and has gained 209%, outperforming the Zacks categorized Semiconductor-General industry's gain of just about 44.7%.
Currently, NVIDIA carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>