NVIDIA's AI GPUs are in high demand and selling for up to 20 times the price of their gaming GPUs, resulting in an impressive surge in the company's stock. HSBC has upgraded NVIDIA's position due to their strong presence in the AI market and the capability of their chips in various fields. As a result, HSBC has raised NVIDIA's stock prices from $175 per share to $355 per share, a 30% increase compared to Tuesday's trading price.
While NVIDIA's Data Center revenue has not significantly increased in the last two quarters, the demand for GPUs in the AI segment can offset any potential excess inventory situation. HSBC analysts report that the high demand for AI chips is due to their sale price being 10 to 20 times higher than the traditional gaming GeForce GPUs. This means that NVIDIA does not have to focus on increasing sales volumes, as each chip sold can generate significant revenue.
NVIDIA's A100 and H100 accelerators can cost between $10,000 and $40,000, whereas their top gaming GPU, the GeForce RTX 4090, starts at $1599 and has been selling below that recently.
