When it comes to processing power for artificial intelligence (AI) applications, speed is essential, but chipmaker Nvidia also wants to be first in terms of manufacturing.
Bank of America research analyst Vivek Arya has high hopes for Nvidia’s stock, especially with its strong focus on deployment of its products. If more bullishness is ahead for the stock, then this should benefit the Direxion Daily NVDA Bull 1.5X Shares (NVDU).
In 2023’s big tech comeback, AI has been a common refrain for its strong growth prospects. More industries are harnessing the capabilities of AI, which will require the need for chips from the likes of companies like Nvidia.
As mentioned, Nvidia is now focused on rapid deployment of its products. For this reason, Arya is forecasting upside ahead for the stock after viewing a company presentation to investors.
“The analyst referred to an updated investor presentation the company issued this month, which shows the chip maker is moving from its previous two-year product cycle to a one-year cadence for its AI chips,” Barron’s reported. “A slide in the document shows Nvidia will release successors to the current high-end H100 product in 2024 and 2025.”
“We believe the new data center roadmap disclosure suggests widening product breadth with an accelerated launch cadence that can continue to make it tougher for merchant competitors to catch-up,” Arya mentioned.