Chip giant NVIDIA (NVIDIA) has taken advantage of the artificial intelligence (AI) boom, and its stock price has soared by nearly 90% this year, and its market value has surged by more than 300 billion U.S. dollars, which is five times that of its long-term rival Intel. At the same time, experts pointed out that the potential of Huida’s software business should not be underestimated.
Huida’s stock price continued to rise by 1.2% in early trading on the 30th to $273.09 after closing 2.2% higher on the 29th. Since the beginning of spring, Huida’s stock price has risen in a straight line, with a cumulative hurricane of 88.5%. It is heading for the largest quarterly increase in more than 20 years, and it is also the constituent stock of the S&P 500 index with the most rapid rise.
Huida’s market value has increased by about US$305 billion from the end of last year, nearly doubling to US$666.5 billion, more than five times Intel’s market value of US$130.4 billion.
The main reason for Huida’s stock momentum is to catch up with ChatGPT’s artificial intelligence (AI) development trend. Huida, which started out as a game graphics chip, has now expanded its business tentacles to AI chips, with applications ranging from self-driving cars to robots. The company also launched a cloud-based AI supercomputer.
Jen-Hsun Huang, CEO of Huida, recently announced cooperation with several major technology companies such as Google, Microsoft, and Oracle to create AI applications for different industries.
Recently, the market’s attention to Huida has been focused on AI hardware. Piper Sandler, an investment bank, believes that the outside world may underestimate Huida’s software strength. Analyst Harsh Kumar pointed out that Huida’s software products are still in the early stage of growth and application, and he believes that the company has the ability to create new profitable market opportunities.
Kumar pointed out three major opportunities for Huida Software, including AI-related software, the Omniverse platform for virtual collaboration and real-time simulation, and self-driving car software tailored for automobile factories.
Kumar estimates that the current revenue of Huida’s software department is about 350 million to 400 million US dollars, and it is believed that the revenue is expected to reach several billion US dollars by 2030.
On the 29th, Kumar raised the target price of Huida from US$275 to US$300, and reiterated the “overweight” investment rating. Morgan Stanley analyst Joseph Moore raised Huida’s target price from US$255 to US$304 a few days ago, and also gave it an “overweight” investment rating.
further reading
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