Stock Of NVIDIA Closes At Record Levels After Google AI Partnership

(CTN News) – In reaction to Nvidia’s announcement that it will be partnering with Google to expand distribution of its artificial intelligence technology, Nvidia shares rose 4.2% Tuesday to close at a record high.

Its torrid run has continued, as the stock has gained 234% in 2023, making it the stock with the highest return in the S&P 500 by far. Meta, the parent company of Facebook, is ranked second in the index, up 148% in the past year.

After reporting double-digit quarterly revenue growth from a year earlier, the company provided a forecast indicating that sales this period could rise 170% on an annual basis, which came less than a week after announcing a quarterly revenue double-digit growth from a year earlier.

As a result of the company’s better-than-expected earnings report, the stock rose to a record intraday high of $502.66 the day after the report was released before retreating in the afternoon.

The reason Nvidia’s business is booming is that its graphics processing units, or GPUs, are being gobbled up by cloud companies, government agencies and startups in order to train and deploy models based on generative artificial intelligence, such as OpenAI’s ChatGPT which is powered by GPUs.

It was announced on Tuesday by the CEO of Nvidia, Jensen Huang,

That the two companies would be working together on artificial intelligence projects as part of a Google conference.

The purpose of this partnership is to provide Google’s cloud customers with better access to the powerful Nvidia H100 GPUs, which are used in Nvidia’s powerful GPUs as a result of this partnership.

“As part of our expanded collaboration with Google Cloud, we are going to help developers accelerate their work with infrastructure, software, and services that will boost energy efficiency and lower costs,” Huang said in a blog post.

A number of competing cloud platforms such as Amazon Web Services and Microsoft Azure are also offering GPUs from Nvidia.

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