NVIDIA (NVDA) Gains From Growing Investments in Generative AI
NVIDIA Corporation NVDA has been benefiting from growing investments in generative artificial intelligence (AI). Its data centers and HGX systems are booming in the domestic as well as international markets, driven mainly by AI and accelerated computing platforms. The Consumer Internet Companies are also driving the demand for NVIDIA’s purpose-built data centers for supporting AI operations.
Generative AI is a type of AI technology that can produce various types of content, including text, imagery, audio and synthetic data. It is driven by a large language model, which means it uses a lot of data to understand and generate conversations or images.
The growing demand to modernize the workflow across industries is expected to drive the demand for generative AI applications. The global generative AI market size is anticipated to reach $109.37 billion by 2030, according to a new report by Grand View Research. The market is expected to witness a CAGR of 35.6% from 2023 to 2030.
Tapping Generative AI Opportunities for Growth
NVIDIA is prepared to capitalize on the growing demand from enterprises looking to implement large-scale Generative AI. The company has teamed up with Snowflake to help enterprises create custom large-language models for advanced AI services leveraging NVIDIA's NeMo platform and Snowflake data cloud.
Moreover, NVDA is also benefiting from its strong partner base. The company has partnered with ServiceNow and Accenture to introduce the AILighthouse program. This initiative combines ServiceNow's enterprise automation platform with NVIDIA's accelerated computing, along with Accenture's consulting and deployment services.
Some major industry leaders, including Adobe ADBE, Getty image and Shutterstock are also using NVIDIA Picasso. Picasso is a cloud-based service for creating and deploying AI-driven image, video and 3D applications with advanced text-to-visual features using Generative AI.
Apart from Adobe, a few other software companies like Salesforce CRM and Cisco CSCO have entered into the competition to create Generative AI-based applications. These companies are integrating this new technology into their products. However, generative AI requires vast knowledge to create content and needs huge computational power. As a result, enterprises looking to create generative AI-based applications will be required to upgrade their existing network infrastructure.
NVIDIA’s GPUs are already being applied in AI models, which is expanding its footprint in untapped markets like automotive, healthcare and manufacturing. The generative AI revolution is likely to create huge demand for its next-generation high computing powerful chips. The company expects its third-quarter fiscal 2024 revenues to reach approximately $16 billion from $5.9 billion in the year-ago quarter, largely driven by the growing AI investments across the data center end market.
Software Giants Integrating AI Tools
The digital media solutions provider, Adobe, aggressively expanded its footprint in the generative AI space through partnerships and new solutions. ADBE has unveiled a family of generative AI models, Firefly, focused on the generation of texts and images. Per the company, Firefly will offer more precision, speed, power and ease in content creation. It will let users of various experience levels create high-quality images and stunning text effects.
Salesforce forayed into the generative AI space with the launch of Einstein GPT in March 2023. In June 2023, the company elevated the set of its generative AI tools with the launch of the AI Cloud service. With this, the company claims to offer one-stop AI-powered solutions for enterprises looking to enhance productivity.
Salesforce’s newly launched AI Cloud is a suite of services that delivers enterprise-ready real-time, open and secure generative experiences across all applications and workflows. The suite will power new capabilities across CRM’s products, including Einstein service, data analysis software Tableau and workplace-messaging app, Slack.
Cisco’s AI and machine learning offerings encompass a wide range of computing solutions for enterprises, including a focus on cybersecurity. The company plans to enhance customer experience solutions, devices and its video conferencing platform, Webex Suite, with machine learning technologies, automation and generative AI features from meeting summaries to visual enhancements.
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