- Nvidia shares gained 0.6% Monday after the company announced the H200, its latest and most powerful graphics processing unit (GPU) to power artificial intelligence (AI) systems.
- The GPU is designed to “fuel the acceleration of generative AI and large language models,” the chipmaker said.
- Bank of America analysts indicated that enterprise generative AI could play a key role in Nvidia’s profitability ahead of the chipmaker reporting earnings on Nov. 21.
Nvidia (NVDA) shares gained 0.6% Monday after the chipmaker unveiled its latest and most powerful graphics processing unit (GPU), the H200, designed to power artificial intelligence (AI) systems as interest in AI grows.
The company said that H200 is the “world’s most powerful GPU” and the first to offer HBM3e, the “faster, larger memory to fuel the acceleration of generative AI and large language models.”
H200 is an upgrade from Nvidia’s H100 GPU, which powered leading generative AI tech, including Microsoft-backed (MSFT) OpenAI’s ChatGPT.
The company reported that the H200, which is slated to be available starting in the second quarter of 2024, is compatible with the hardware and software of systems using its previous model, meaning that companies already using Nvidia tech can transition to the latest GPU.
H200 is also available within Nvidia’s GH200 Grace Hopper Superchip, which the company reported on Monday powers more than 40 AI supercomputers globally and is set to be used by companies such as Dell (DELL) and Lenovo (LNVGF).
Bank of America analysts said that enterprise generative AI could play a key role in Nvidia’s profitability ahead of the chipmaker’s earnings report on Nov. 21, suggesting that investors could be underestimating the “potential rise of genAI adoption by enterprise customers that NVDA can uniquely leverage via its best-in-class enterprise partner relationships.”
Nvidia shares have more than tripled in value year-to-date.