Yahoo Finance NVIDIA (NVDA) Spectrum-X to Power Dell, HPE & Lenovo Servers
NVIDIA Corporation NVDA recently revealed that Dell Technologies DELL, Hewlett Packard Enterprise HPE and Lenovo will be the first system makers to integrate NVDA’s newly launched Spectrum-X platform.
Launched in May 2023, Spectrum-X is a purpose-built ethernet networking technology for generative artificial intelligence (AI). The Platform integrates Spectrum-4 Ethernet switch and the NVIDIA BlueField-3 SuperNIC, enabling accelerated connectivity under intense workloads.
Introduced in 2022, the Spectrum-4 Ethernet Switch achieves four times the switching throughput compared with its predecessors, all while reducing power consumption by 40% and reaching speeds of up to 51.2 TB/s. BlueField-3 SuperNICs are built to provide strong computational power to networking, storage and security.
NVIDIA Corporation Price and Consensus
NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote
The company discloses that the server package from Dell, Hewlett Packard and Lenovo will also integrate hardware, such as the NVIDIA H100 Tensor Core, and software like NVIDIA (AI) Enterprise and AI Workbench, along with various software kits.
NVIDIA Benefits From Rising Demand for AI Globally
With increased demand from consumer Internet companies investing in data centers, applications and cloud servers, NVDA is witnessing a strengthened partner base. The company is actively engaged with numerous industry leaders, including Amazon, Baidu, Meta Platforms, IBM, Microsoft, SAP, Dell and Hewlett Packard.
Furthermore, NVIDIA is experiencing heightened demand for its offerings, driven by the increasing need for accelerated computing and AI advancements in the United States, alongside steady growth in China.
The growing use of generative AI and large language models using NVDA’s GPUs is a tailwind for its data center end-market business. Internationally, the company has acquired a foothold in multiple nations with partners like Foxconn, Lenovo, Tata, Infosys, Reliance and many others to further invest in AI. Additionally, the company is continuously trying to enhance its presence across the automotive, telecommunications, manufacturing and healthcare industries to drive top-line growth.
Zacks Rank and Other Stocks to Consider
Currently, NVIDIA sports a Zacks Rank #1 (Strong Buy), while Dell carries a Zacks Rank #2 (Buy) and Hewlett Packard has a Zacks Rank #3 (Hold). Shares of NVDA and DELL have rallied 245.6% and 82.4% year to date, respectively, while shares of HPE have declined 0.8%.
NetEase NTES is another top-ranked stock from the broader technology sector, which flaunts a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NetEase's fourth-quarter 2023 earnings has been revised upward by 9 cents to $1.73 per share in the past 30 days. For fiscal 2023, earnings estimates have increased by 42 cents to $6.96 per share in the past 30 days.
NTES' earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same on one occasion, the average surprise being 16.63%. Shares of NTES have gained 63.2% year to date.
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