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Nvidia Stock Nears New All-Time High Following Latest AI Training Chip Announcement

2 mins
Updated by Kyle Baird
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In Brief

  • Nvidia introduces the H200 GPU, a significant upgrade from the H100, promising near-double output speed and advanced AI capabilities.
  • The H200, slated for a Q2 2024 release, will directly compete with AMD's MI300X GPU, featuring 141GB of next-generation memory.
  • Nvidia's stock sees an unprecedented rise amid new US chip export restrictions, highlighting the company's strong market position and adaptability.
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Nvidia recently unveiled the H200, a high-end GPU engineered to revolutionize artificial intelligence (AI) model training and deployment.

This advancement is a sophisticated upgrade from the H100, the powerhouse behind OpenAI’s GPT-4.

Nvidia Flexes New H200 AI Chip Stats

The H200 stands out with its 141GB of next-generation “HBM3” memory. This is a leap in technology that facilitates efficient “inference”—the utilization of large models post-training to generate text, images, or predictions. It’s poised to deliver outputs nearly twice as fast as the H100, showcasing a remarkable stride in AI processing capabilities.

Set to ship in the second quarter of 2024, the H200 will spar with AMD’s MI300X GPU. Both chips represent a new era of AI processing with their enhanced memory features, essential for accommodating extensive AI models.

This competition also marks a crucial phase in the evolution of AI hardware, with significant implications for the tech industry’s future.

Additionally, the H200 is designed to integrate seamlessly with existing H100 setups. This ensures a smooth transition for AI companies already using the previous model. This backward compatibility reflects Nvidia’s strategic approach to market adaptation and customer retention. The new GPU will be available in various configurations, meeting diverse needs in the AI technology ecosystem.

Read more: AI Stocks: Best Artificial Intelligence Companies To Know in 2023

Battling Against US Chip Restrictions

However, this comes amid new US export restrictions on high-end chips, which could significantly impact Nvidia. A substantial portion of Nvidia’s data center revenue, approximately 20-25%, originates from China.

All in all, the latest curbs aim to limit the advancement of China’s military capabilities using AI technology. This has prompted Nvidia to redirect its advanced systems to other markets and pause new AI chip orders from China.

Despite these challenges, Nvidia’s trajectory remains robust, with its stock experiencing a meteoric rise of over 230% in 2023. The company projects a staggering $16 billion in revenue for its fiscal third quarter. This equates to a 170% increase from the previous year.

Nvidia stock (NVDA) returned to the $486 price level on November 13, approximately $12 short of its $502 all-time high. Overall, this marks a nearly 250% increase from the start of 2023.

Nvidia NVDA Stock Price Chart 1W. Source: TradingView
Nvidia NVDA Stock Price Chart 1W. Source: TradingView
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Kyle Baird
Kyle migrated from the East Coast USA to South-East Asia after graduating from Pennsylvania's East Stroudsburg University with a Bachelor of Science degree in 2010. Following in the footsteps of his grandfather, Kyle got his start buying stocks and precious metals in his teens. This sparked his interest in learning and writing about cryptocurrencies. He started as a copywriter for Bitcoinist in 2016 before taking on an editor's role at BeInCrypto at the beginning of 2018.
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