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When Nvidia (NASDAQ:NVDA) reported its fiscal fourth-quarter results last week, Chief Executive Jensen Huang kept secret how he sees artificial intelligence playing a role in the chipmaker’s future.
Huang said that the AI market is at a “tipping point” and that Nvidia (NVDA) “is essentially the operating system for artificial intelligence systems today.” Investors liked what Nvidia (NVDA) had so much to say that it sent the company’s shares up more than 14% the day after your earnings and outlook report.
When it comes to AI, ChatGPT technology has gotten a lot of attention lately. And with all the attention ChatGPT has received, now one of the big questions for Wall Street is how to size the market for AI technology and the opportunity it presents for Nvidia (NVDA).
Bernstein analyst Stacy Rasgon said in a research report Monday that the potential ChatGPT opportunity is wide open for Nvidia (NVDA) as its graphics processing chips “are used both to train neural networks responsible enough to handle the inference of the queries themselves” with ChatGPT.
“(ChatGPT) has captured the attention of investors who are trying to figure out what it means, how it works, how big it will be and who will benefit,” Rasgon said.
According to Rasgon, there have been numerous attempts to estimate the size of the ChatGPT market opportunity, and those efforts are especially focused on Nvidia (NVDA) because its GPU technologies are used for ChatGPT and many other machine learning applications.
“(Nvidia’s GPUs) handle a variety of computational precisions,” Rasgon said, adding that the GPU opportunity from ChatGPT and other large language models “could be in the tens of billions of dollars annually at scale.”
Meanwhile, Bank of America analyst Justin Post said on Monday that Google (GOOG) still has “a huge lead” in AI as it competes for a position against its main AI rival Microsoft (MSFT), despite recent massive investments by Microsoft (MSFT) in the developer of ChatGPT. open AI.
