Nvidia hits a record high as Wall Street begins to understand its dominance of AI
Nvidia hit an all-time high of $190.08 on Monday after another Wall Street bank took notice of its huge advantage in artificial intelligence.
AI is the hottest area of tech right now, and Nvidia is crushing its competition. Last week, Evercore analyst C.J. Muse said that not enough people are paying attention to Nvidia and AI right now and Vivek Arya of Bank of America Merril Lynch agrees.
Arya said Nvidia's transition to a chip maker and AI powerhouse is "underappreciated," according to a CNBC review of Arya's comments.
Muse also thinks the company is underappreciated and expects AI to be the main driver to $45 billion of growth at Nvidia. He said every computer will eventually have some AI component, representing a huge opportunity for chip makers like Nvidia.
Nvidia has the chance to dominate the competition because of its impressive graphics processing units. Their chips are the best for artificial intelligence work. Intel and AMD are Nvidia's strongest competitors, but their technology is behind Nvidia's, Markets Insider previously reported.
Nvidia's newest "Volta" chips are extremely powerful chips aimed at the data center market where a lot of AI processing power will live. The company is highly focused on this segment of its business, and BAML thinks it could grow 21% in 2018, according to CNBC, citing Arya. Nvidia started working on its AI programming platform in 2006, while other players have started their AI tech developments much more recently.
Shares of Nvidia are up 85.33% this year.
