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NVIDIA's (NVDA) Ampere A100 GPUs to Debut on Google Cloud

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Graphic chip behemoth NVIDIA Corporation (NVDA - Free Report) yesterday announced that its recently-launched A100 Tensor Core graphics processing unit (GPU) is now available on Google Cloud, a division of Alphabet (GOOGL - Free Report) . With this, Google Cloud has become the first cloud-service provider to offer NVIDIA’s flagship server GPU.

Rolled out this May, the A100 is the first GPU based on NVIDIA’s Ampere architecture, specifically designed for data centers and artificial intelligence (AI). The company stated that A100 has provided it the greatest generational leap ever in performance within its eight generations of GPUs.

Per the graphic chip maker, the Ampere A100 GPU delivers the best performance for high-performance computing (HPC), data analytics, scientific computing, AI training and inference, 5G services and many intensive computational workloads at data centers. The company also claims that this universal workload accelerator GPU will boost computing performance by up to 20 times over its previous GPUs.

Data centers present solid growth opportunities for the company. As more and more businesses are shifting to cloud, the need for data centers is increasing immensely. To cater to this huge demand, data-center operators like Alphabet, Amazon (AMZN - Free Report) , and Microsoft (MSFT - Free Report) are expanding the global operations and boosting their capabilities as well, which is spurring demand for GPUs.

Additionally, last month, NVIDIA stated that the world’s top server makers, including HPE, Cisco, Dell, Lenovo, and Asus, will likely launch more than 50 NVIDIA A100-powered systems.

NVIDIA GPUs are gaining rapid traction with the proliferation of AI. The increasing usage of AI tools in data-center, automotive, healthcare and manufacturing industries is anticipated to drive demand for GPUs over the long haul.

Notably, NVIDIA is already a dominant player in the data-center market. The company also enjoys a first-mover advantage in the AI field and its expanding product portfolio is capable enough to leverage the growing adoption of AI in various industries.

We believe the company is growing well in the data-center business as reflected by the recently-reported quarterly results. In the first quarter of fiscal 2021, the company’s revenues from Data Center (37% of adjusted revenues) soared 80% year over year and 17.9% sequentially to $1.14 billion. This uptick was driven by strong demand from hyperscale and vertical industry end customers.

NVIDIA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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