NVIDIA Corporation (NASDAQ:NVDA) announced that Tencent Cloud will adopt NVIDIA Tesla GPU accelerators to help advance artificial intelligence for enterprise customers.
Tencent Cloud will integrate NVIDIA’s GPU computing and deep learning platform into its public cloud computing platform. This will provide users with access to a set of new cloud services powered by Tesla GPU accelerators, including the latest Pascal™ architecture-based Tesla P100 and P40 GPU accelerators with NVIDIA NVLink™ technology for connecting multiple GPUs and NVIDIA deep learning software.
NVIDIA’s AI computing technology is used worldwide by cloud service providers, enterprises, startups and research organizations for a wide range of applications.
“Companies around the world are harnessing their data with our AI computing technology to create breakthrough products and services,” said Ian Buck, general manager of Accelerated Computing at NVIDIA. “Through Tencent Cloud, more companies will have access to NVIDIA’s deep learning platform, the world’s most broadly adopted AI platform.”
“Tencent Cloud GPU offerings with NVIDIA’s deep learning platform will help companies in China rapidly integrate AI capabilities into their products and services,” said Sam Xie, vice president of Tencent Cloud. “Our customers will gain greater computing flexibility and power, giving them a powerful competitive advantage.”
GPU-Based Cloud Offerings for AI
Organizations across many industries are seeking greater access to the core AI technologies required to develop advanced applications, such as facial recognition, natural language processing, traffic analysis, intelligent customer service, and machine learning.
The massively efficient parallel processing capabilities of GPUs make the NVIDIA computing platform highly effective at accelerating a host of other data-intensive workloads, including advanced analytics and high performance computing.
As part of the companies’ collaboration, Tencent Cloud intends to offer customers a wide range of cloud products based on NVIDIA’s AI computing platforms. This will include GPU cloud servers incorporating NVIDIA Tesla P100, P40 and M40 GPU accelerators and NVIDIA deep learning software. Tencent Cloud launched GPU servers based on NVIDIA Tesla M40 GPUs and NVIDIA deep learning software in December.
During the first half of this year, these cloud servers will integrate up to eight GPU accelerators, providing users with superior performance while meeting the requirements for deep learning and algorithms that involve ultra-high data volume and ultra-sized equipment.
Shares of NVIDIA closed yesterday at $107.09, down $0.98 or -0.91%. NVDA has a 1-year high of $120.92 and a 1-year low of $34.38. The stock’s 50-day moving average is $106.42 and its 200-day moving average is $90.04.
On the ratings front, NVDA has been the subject of a number of recent research reports. In a report released yesterday, B. Riley analyst Craig Ellis reiterated a Buy rating on NVDA, with a price target of $135, which implies an upside of 26% from current levels. Separately, on March 20, Goldman Sachs’ Toshiya Hari 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, Craig Ellis and Toshiya Hari have a yearly average return of 27.6% and 15% respectively. Ellis has a success rate of 73% and is ranked #39 out of 4552 analysts, while Hari has a success rate of 74% and is ranked #802.
Sentiment on the street is mostly bullish on NVDA stock. Out of 27 analysts who cover the stock, 14 suggest a Buy rating , 9 suggest a Hold and 4 recommend to Sell the stock. The 12-month average price target assigned to the stock is $116.95, which implies an upside of 9% from current levels.
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.