NVIDIA Corporation (NVDA - Free Report) , in an attempt to fortify its foothold further in the booming artificial intelligence (AI) space, has partnered with Arrow (ARW - Free Report) for an AI computing platform, Jetson Xavier, to deliver advanced AI computing.
Jetson Xavier powers autonomous machines like robots or drones with applications in manufacturing, logistics, retail, agricultural, healthcare and more.
Win-Win Scenario for Both
NVIDIA’s unmatched AI capabilities combined with Arrow’s robust industrial customers and expertise in technical support and design makes us optimistic. The platform is expected to help businesses take on their digital transformation initiatives.
Moreover, with the launch of this platform, user experience can be maximized by offering more energy-efficient AI capabilities. The product is built for autonomous machines and is likely to deliver more than 20 times the performance and 10 times the energy efficiency of its predecessor, NVIDIA Jetson TX2. Hence, it is expected to enable both the companies to increase their customer base and garner additional revenues.
Per a recent report by Research And Markets, the global edge computing market is expected to reach $20,495.24 million by 2026 from $7,983.61 million in 2017 at a CAGR of 11%.
Moreover, the growth of edge computing is also assisting the rise in use of IoT (Internet of Things) devices. The companies can make the most of the growth opportunity if the cards are rightly played.
Increasing AI Adaptability
The application of AI techniques like machine learning, deep learning and natural language processing (NLP) is gradually increasing across industries. This technology is being aggressively used by data-center operators, autonomous vehicles manufacturers and original design manufacturers (ODM).
NVIDIA is trying to revolutionize technology to make devices faster, smarter and more accurate. This, in turn, is expected to benefit NVIDIA going forward.
NVIDIA’s AI platforms are the first choice among data-center operators, autonomous vehicles and ODM manufacturers. The latest collaboration with Arrow will enable the company to be the leader in providing AI technology to industries from manufacturing to healthcare.
During the last quarter, NVIDIA unveiled its Turing architecture, which includes real-time ray tracing technology, RT Cores as well as Tensor Cores for AI inferencing. The technology is likely to take the gaming experience to a whole new level.
The company’s AI inference solution is helping it expand its total addressable market. The recently launched Tensor RT 4 helps in speech recognition, speech synthesis, translation, and recommendation systems. With this, the company expects to “address a much larger portion of deep learning inference workloads, delivering up to 190x performance speed-up relative to CPUs.”
Zacks Rank and Stocks to Consider
NVIDIA and Arrow both carry a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the broader Computer and Technology sector are Radware (RDWR - Free Report) and Vishay Intertechnology (VSH - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Radware and Vishay is projected to be 19% and 9%, respectively.
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