On Wednesday, CICC initiated coverage on NVIDIA (NASDAQ:NVDA), assigning the stock an Outperform rating and setting a price target of $870. The firm highlighted NVIDIA's dominant position in the AI-accelerated computing sector, where it held an 82% market share in 2022 according to Liftr Insights.
NVIDIA's comprehensive approach, which includes hardware, software, platforms, and applications devoted to accelerated computing, was emphasized as a key factor in its success. The company has developed an accelerated computing platform that effectively integrates software and hardware. This platform is based on the collaboration between GPUs, CPUs, and network hardware products, and is supported by a CUDA programming model-based AI ecosystem.
The analyst noted that NVIDIA is capitalizing on the growing cloud capital expenditure and the current market's undersupply of computing power for training large language models (LLMs). This demand is expected to drive the company's growth in the near term.
Looking forward, the commercialization of inference chips is anticipated to further expand the AI hardware market. CICC expects NVIDIA to continue leading the AI computing space, leveraging its technological strengths and ecosystem advantages to maintain its competitive edge.
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