There’s been a lot going on with Nvidia (NASDAQ:NVDA) lately. First, the company is collaborating with Siemens (OTCMKTS:SIEGY) to develop real-world uses for the metaverse. Second, Nvidia’s components are helping to enable artificial intelligence (AI)-enabled voice and vision applications. On top of all that, a Wall Street expert recently issued an ambitious price target for NVDA stock.
Nvidia never ceases to push the envelope when it comes to next-generation hardware development. You probably know the company as a graphics-card pioneer, yet Nvidia isn’t afraid to branch out into other areas.
Indeed, you just never know whom Nvidia might collaborate with next in the pursuit of tech-market domination. In this context, as Nvidia’s competitive moat gets wider, the bull case for the company’s investors only gets stronger.
What’s Happening with NVDA Stock?
NVDA stock is down in 2022 so far, but that could be said about many technology stocks. When the tide is sinking, most boats will go down and that’s just how it is on Wall Street. It’s not necessarily Nvidia’s fault, and any current share-price weakness can be viewed as a prime buying opportunity.
Even with the Nvidia share price under pressure, KeyBanc analyst John Vinh seems undeterred from his optimistic outlook. Observing steady cloud-market growth in May driven by computing processors, Vinh maintained his “overweight” rating on Nvidia (which is similar to a “buy” rating).
Along with that, the KeyBanc analyst issued an ambitious $250 price target on NVDA stock. It wasn’t long ago that the stock traded near $160. Could there really be that much upside potential? The answer depends on Nvidia’s drive to stay ahead of its competitors in advancing new concepts and products — and we can definitely count on Nvidia in that regard.
A New Frontier in the Metaverse
Just recently, two examples of Nvidia’s drive to innovate came to the fore. The first is a blog post describing Sensory’s use of hybrid computing, which uses both cloud-based and on-premises computing resources. Hybrid computing helps Sensory bring interactivity to many types of voice-enabled electronics, from wearables to refrigerators and microwave ovens.
Of course, this couldn’t be accomplished without the right hardware, and Nvidia is glad to provide it. To that end, some of Sensory’s recently introduced AI-embedded voice and vision applications “rely on NVIDIA NeMo — a toolkit to build state-of-the-art conversational AI models — and Triton Inference Server for its Sensory Cloud hybrid computing unit.”
Meanwhile, Nvidia has a powerful partner in Siemens as the two companies seek to build out a particular, real-life area of the metaverse. We can call it the industrial metaverse, where physics-based digital twins can help engineering teams tackle tough manufacturing-industry problems.
According to the press release, the two companies “plan to connect Siemens Xcelerator, the open digital business platform, and NVIDIA Omniverse… a platform for 3D design and collaboration.” This way, Nvidia can combine its real-time AI with Siemens’ physics-based digital models, and thereby combine the best of both worlds – physical and digital.
What You Can Do Now
Clearly, the industrial metaverse is still in the early stages. It’s exciting to consider how Nvidia and Siemens will develop this AI-enhanced tech frontier.
Nvidia is also providing its components to help advance voice and vision applications with multiple potential uses in business and at home. As you can see, Nvidia is relentless in its quest to push the boundaries of what’s possible with technology.
With this in mind, it’s not hard to justify a $250 price target – and a long position, if you’d like to take one — with NVDA stock.
— Louis Navellier and the InvestorPlace Research Staff
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Source: Investor Place