Nvidia winning the AI ​​battle? From cryptocurrencies to medicine

Nvidia Company it is one of the most important pieces of the puzzle AI. After all, it is a company that provides the computing power needed to run AI applications. For this reason, Nvidia should see further benefits from the huge growth of the AI ​​market that is so loud right now.

Recently, Morgan Stanley analysts said that the company is a leader in the field of acceleration of computing and a key enabler of AI development in various industries, the company said, quoted by Barron's. Cowen analysts, in turn, note that NVDA is a key enabler of AI development in various divisions of other industries.

More interestingly, Nvidia has just partnered with Microsoftto build one of the most powerful AI supercomputers in the world. These computers will be powered by the Azure supercomputing infrastructure as well as by Nvidia GPUs. According to Manuvir Das, Vice President of Enterprise Computing at NVIDIA, "Our partnership with Microsoft will provide researchers and businesses with cutting-edge AI infrastructure and software to harness the transformative power of AI.”

Nvidia technology in medicine

Instead of training a program to mimic human conversations, Nvidia worked with software developer InstaDeep and the Technical University of Munich to feed AI models with genetic data: Gs, Ts, As, C and others, FierceBiotech reported.

Using the DNA of hundreds of people and Cambridge-1, the UK's most powerful supercomputer, researchers found it possible to develop a generalizing program - "genomic language model" – that could be applied to many different tasks, rather than requiring scientists to build tailor-made AIs that would look for answers to every important biological question.

At the same time, Nvidia is working with synthetic biology company Evozyne to build a large language model focused on constructing never-before-seen proteins. The company was also the only semiconductor manufacturer ever to attend the conference JP Morgan Healthcare Conference. According to the portal bio-itworld NVIDIA launched its healthcare AI computing platform, Clara, in 2018 and continues to work on it. A representative of the company said at the conference that as a company:

“We recognize that healthcare is becoming the absolute largest data-generating industry, and we face global challenges related to the rising costs of providing and accessing healthcare. That's why we're building computing platforms to meet these grand challenges."

What does Wall Street think of the company's stock?

The company seems to be very highly valued. Trailing P/E is 96x, while forward P/E is 58,5x. The company's share price has increased by about 54% since the beginning of the year. On the other hand, the annual decline in share prices is 10%.

NVIDIA Stock CFD Chart, D1. Source: platform Next Generation CMC Markets.

In January, some companies adjusted their expectations regarding the company's share price. Barclays revised its price target for NVIDIA to $250 from $170, Truist Securities revised its price target for NVIDIA to $238 from $198.