After revealing its latest powerful graphics processing unit (GPU), the H200, designed to drive artificial intelligence (AI) systems amidst the increasing interest in AI, Nvidia (NVDA) saw a 0.6% surge in shares on Monday. The H200, touted as the “most powerful GPU in the world” by the manufacturer, is the first to feature HBM3e, offering faster and larger memory to accelerate relational AI and large language models. The H200 represents an advancement from Nvidia’s previous H100 GPU, known for powering advanced generative AI technologies like ChatGPT developed by Microsoft-backed (MSFT) OpenAI.
Business reports indicate that existing Nvidia technology users can seamlessly transition to the latest GPU, the H200, set to be available from the second quarter of 2024. This new GPU is compatible with both hardware and software configurations of systems utilizing its predecessor’s design. Furthermore, Nvidia’s GH200 Grace Hopper Superchip, unveiled on the same day, is fueling over 40 AI supercomputers globally and will be integrated by industry giants such as Dell (DELL) and Lenovo (LNVGF), alongside the H200.
Ahead of Nvidia’s earnings announcement on November 21, analysts from Bank of America highlighted the pivotal role that enterprise relational AI could play for Nvidia. They suggested that investors might be overlooking the potential surge in genAI adoption among enterprise clients, which Nvidia could capitalize on through its top-tier enterprise partnerships.
