On Tuesday, Susquehanna affirmed a positive stance on NVIDIA (NASDAQ:NVDA) shares, raising the price target to $1,050 from the previous $850. This adjustment follows the revelations at NVIDIA's annual GTC event in San Jose on Monday. The firm highlighted several key developments from the conference that contributed to this optimistic outlook.
NVIDIA announced their upcoming Blackwell GPU architecture, which introduces a dual-die system expected to launch later in the year. This innovation aligns with prior forecasts. Blackwell boasts significant advancements over its predecessor Hopper, with 208 billion transistors and 20 petaFLOPS of AI performance, marking a fivefold increase in AI capabilities and quadruple the on-die memory.
Further details revealed include a strategic change in the CPU to GPU ratio for the Grace Blackwell Superchip, now featuring two GPUs for every CPU, diverging from the one-to-one ratio seen in the Grace Hopper configuration. The new DGX GB200 NVLink72 system was noted for its efficient design, utilizing 5,000 NVLink cables and saving 20kW of power by foregoing transceivers, optics, and retimers.
The DRIVE Thor platform, incorporating the Blackwell architecture, is gaining traction with OEMs and is slated for integration into production vehicles as early as next year. Susquehanna reiterated its positive rating, citing the significant technological advancements and the company's forward momentum in the AI and automotive sectors as key reasons for the increased price target, which is based on a 37.5x multiple of the expected 2025 enterprise value to net operating profit after tax (EV/NOPAT).
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