Nvidia Sees Massive Stock Gains with New GPU Lineup Announcement, AI Partnership

Nvidia has long been the face of advanced computing thanks due in large part to its incredible graphics cards. But now, following an announcement dated May 17th, 2023, Nvidia is pushing headlong into even more exciting avenues, most of all situated in the artificial intelligence world, with a new partnership with ServiceNow. The company has also debuted brand new RTX 4060 and RTX 4060 Ti graphics cards, set to release in July and May 23rd.

Nvidia's partnership with business IT gurus ServiceNow will see the firms collaborating on an "enterprise-grade generative AI," which will aim to "transform business processes" by making them far swifter in tandem with "more intelligent workflow automation." Nvidia and AI have long been associated, but now more than ever, the firm is targeting the tech sphere for some incredible breakthroughs in the face of Google's Bard and OpenAI's ChatGPT.

Artificial intelligence, much akin to the metaverse concept that pervaded conversations last year, has no sooner taken the cultural zeitgeist by storm. Specifically, generative AI is on everyone's mind, shaping the way we look at written workflows, coding, planning, social media campaigning, and so much more.

AI aims to steal a large portion of the tech market, despite the current concerns of a market recession, with a potential 37.3% compound annual growth rate over 2022's estimated $136.55 billion valuation. To say money is in AI would be an understatement.

Nvidia CEO and founder Jensen Huang spoke with CNBC on May 17th, highlighting the massive strides we've experienced in computing and noting the importance of AI's ever-growing foothold. Huang himself says:

"We have reinvented computing for the first time since the IBM System 360, 60 years ago. There's a trillion dollars worth of data center infrastructure installed in the world based on that old method of computation. Now we have accelerated computing, and we have the killer app for generative computing: generative AI."

With the help of Nvidia's accelerated computing platforms, ServiceNow will build a large language model to ensure that business operations are streamlined and that data is far more readily available where necessary. Huang himself describes the partnership as an "engine for transforming all of that data into generative AI models," which will, in turn, help to solve "thousand of problems" in the enterprise world.

The firm would only unveil its newest graphics card lineup a day later, which sees the RTX 4060 Ti and RTX 4060 bathed in the limelight. The Ti iteration, which comes in a $399 8GB model and a $499 16GB model, will feature (among a plethora of other features) DLSS 3 support and Shader Execution Reordering, both of which leverage AI capabilities for smoother frame rates.

The RTX 4060 Ti is slated to drop on May 24, 2023, while the non-Ti variant is scheduled to release sometime in July. It's important to note Nvidia's continued expansion into AI-related concepts, utilizing the framework to better its hardware-bound components. The firm glowingly states in its press release, "AI is the future of gaming and creating."

Following the announcement on Wednesday, May 17, Nvidia saw a 7% uptick, with shares reaching as high as $309. As of writing, the firm's trajectory has jumped even more on the heels of its new GPU unveiling, sporting a 4% increase with a market price of $313.92 a share.

Many market analysts are now speculating that Nvidia, which currently boasts a $770 billion market cap, could inevitably be inducted into the $1 trillion market cap grouping by the end of the year. Nvidia would, however, have to hit a 30% jump, which may well be possible in the face of ever-growing AI hype and continued GPU sales.

The firm has already witnessed in 2023 alone a 113% plus stock increase; thus, anything is possible, especially in this now ever-evolving AI-driven market.