NVIDIA Corporation (NASDAQ:NVDA) with Microsoft Corporation (NASDAQ:MSFT) unveiled blueprints for a new hyperscale GPU accelerator to drive AI cloud computing.
Providing hyperscale data centers with a fast, flexible path for AI, the new HGX-1 hyperscale GPU accelerator is an open-source design released in conjunction with Microsoft’s Project Olympus.
HGX-1 does for cloud-based AI workloads what ATX — Advanced Technology eXtended — did for PC motherboards when it was introduced more than two decades ago. It establishes an industry standard that can be rapidly and efficiently embraced to help meet surging market demand.
The new architecture is designed to meet the exploding demand for AI computing in the cloud — in fields such as autonomous driving, personalized healthcare, superhuman voice recognition, data and video analytics, and molecular simulations.
“AI is a new computing model that requires a new architecture,” said Jen-Hsun Huang, founder and chief executive officer of NVIDIA. “The HGX-1 hyperscale GPU accelerator will do for AI cloud computing what the ATX standard did to make PCs pervasive today. It will enable cloud-service providers to easily adopt NVIDIA GPUs to meet surging demand for AI computing.”
“The HGX-1 AI accelerator provides extreme performance scalability to meet the demanding requirements of fast-growing machine learning workloads, and its unique design allows it to be easily adopted into existing data centers around the world,” wrote Kushagra Vaid, general manager and distinguished engineer, Azure Hardware Infrastructure, Microsoft, in a blog post.
For the thousands of enterprises and startups worldwide that are investing in AI and adopting AI-based approaches, the HGX-1 architecture provides unprecedented configurability and performance in the cloud.
Powered by eight NVIDIA® Tesla® P100 GPUs in each chassis, it features an innovative switching design — based on NVIDIA NVLink™ interconnect technology and the PCIe standard — enabling a CPU to dynamically connect to any number of GPUs. This allows cloud service providers that standardize on the HGX-1 infrastructure to offer customers a range of CPU and GPU machine instance configurations.
Cloud workloads are more diverse and complex than ever. AI training, inferencing and HPC workloads run optimally on different system configurations, with a CPU attached to a varying number of GPUs. The highly modular design of the HGX-1 allows for optimal performance no matter the workload. It provides up to 100x faster deep learning performance compared with legacy CPU-based servers, and is estimated at one-fifth the cost for conducting AI training and one-tenth the cost for AI inferencing.
With its flexibility to work with data centers across the globe, HGX-1 offers existing hyperscale data centers a quick, simple path to be ready for AI.
Shares of Nvidia are currently trading at $99.21, up $0.47 or 0.47%. NVDA has a 1-year high of $120.92 and a 1-year low of $31.04. The stock’s 50-day moving average is $107.71 and its 200-day moving average is $86.80.
On the ratings front, Nvidia has been the subject of a number of recent research reports. In a report released yesterday, Goldman Sachs analyst Toshiya Hari reiterated a Buy rating on NVDA, with a price target of $130, which represents a potential upside of 29% from where the stock is currently trading. On February 24, Mizuho’s Vijay Rakesh reiterated a Buy rating on the stock and has a price target of $130.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Toshiya Hari and Vijay Rakesh have a yearly average return of 13.1% and 27.8% respectively. Hari has a success rate of 64% and is ranked #1034 out of 4513 analysts, while Rakesh has a success rate of 73% and is ranked #29.
Overall, 4 research analysts have rated the stock with a Sell rating, 9 research analysts have assigned a Hold rating and 15 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $108.95 which is 8% above where the stock opened today.
NVIDIA Corp. designs and manufactures computer graphics processors, chipsets, and related multimedia software. The company operates through two segments: Graphics Processing Unit and Tegra Processor. The Graphics Processing Unit segment includes sales of the company’s GeForce discrete and chipset products that supports desktop and notebook PCs plus license fees from Intel and sales of memory products. The Tegra Processors segment provides processors that deliver superior visual and multimedia experience on tablets, smart phones and gaming devices while consuming minimal power.