Nvidia, the leading chip designer, continues to push the boundaries of artificial intelligence (AI) with recent product launches. These releases come amidst a fluctuating market environment, as investors grapple with Nvidia’s reliance on a concentrated customer base and the delayed release of products like its Blackwell GPUs.
In a move to intensify the AI race, Nvidia unveiled its open-source NVLM 1.0 family of large multimodal language models. These models offer enhanced text-only capabilities, adding to their already impressive vision and language task capabilities. This launch puts Nvidia in direct competition with Microsoft-backed ChatGPT developer OpenAI and Alphabet’s Google.
Nvidia also made waves at Unreal Fest Seattle 2024, unveiling new on-device plugins for its Nvidia Ace technology within Unreal Engine 5. These plugins empower developers to create and deploy AI-powered MetaHuman characters on Windows PCs. The new Audio2Face-3D plugin for Autodesk Maya allows developers to generate AI-driven facial animations.
However, Nvidia’s recent stock performance has been impacted by geopolitical tensions. After the U.S. implemented sanctions on AI technology exports to China, China retaliated by encouraging its companies to prioritize domestic chipmakers over Nvidia. This has led to Huawei Technologies, a prominent Chinese tech company, offering its Ascend 910C processors to Nvidia’s former hyperscalar customers in China.
Despite these challenges, Nvidia’s stock has soared over 161% in the past year, driven by strong demand for its AI chips from US hyperscalars. Investors seeking exposure to Nvidia can explore options like ProShares Ultra Semiconductors USD and Invesco PHLX Semiconductor ETF SOXQ.
Nvidia’s stock closed at $116.27 premarket on Wednesday, down 0.62%.
Nvidia’s recent moves in the AI space demonstrate its commitment to innovation. While market volatility and geopolitical tensions create challenges, Nvidia’s strong position in the AI market and its continued investment in new technologies suggest a promising future.
