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Nvidia’s technology conference is currently taking place in Washington, DC, and it will continue until October 29th.
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On Tuesday, the company revealed several new products and partnerships, with the collaboration with Nokia likely being the highlight that really boosted Nvidia’s stock price.
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Recently, Nvidia has made significant equity investments.
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Nvidia shares surged by 5% on Tuesday, closing at an impressive $201.03, marking a new high. This increase has pushed the company’s year-to-date growth to nearly 49.7%, whereas the S&P 500 has recorded an 18.4% return in the same time frame.
The gains on Tuesday followed the announcements made during the GTC Washington event, which is the first time the conference is being hosted in the capital. Typically, GTC is held in March in Silicon Valley and is recognized as a major event in AI.
Investors should pay attention to the recent developments.
During GTC Washington, Nvidia unveiled a plethora of news that seemed to resonate well with investors. The most influential announcement was a partnership with Nokia, the Finnish communications and IT company.
This strategic partnership also involves Nvidia investing $1 billion into Nokia to enhance the creation and deployment of advanced AI-native mobile networks along with AI networking infrastructure.
Specifically, according to the details shared, Nokia will integrate Nvidia’s commercial-grade AI-RAN products into its impressive RAN portfolio. This will aid communications service providers in rolling out AI-native 5G-Advanced and 6G networks using Nvidia’s platforms.
5G is the fifth iteration of wireless networking technology, while RAN stands for Radio Access Network; it connects user devices like smartphones to cellular networks. This collaboration is expected to help Nvidia increase sales by broadening its market reach.
As you might guess, Nokia investors were also quite pleased with this news. Seeing such a significant partnership likely sparked some excitement. On Tuesday, Nokia’s stock climbed by 22.8%.
Nvidia has been actively investing in both public and private companies, creating a portfolio that seems almost like an AI-focused exchange-traded fund (ETF).
In a noteworthy move, late September saw Nvidia announce a partnership with OpenAI, the organization behind the immensely popular ChatGPT. They plan to implement a substantial 10 gigawatts of Nvidia systems in OpenAI’s future AI infrastructure, alongside Nvidia’s potential decision to invest up to $100 billion in OpenAI.
If we look back to mid-September, Nvidia also formed a partnership with Intel, intending to jointly develop custom PC and data center products, including AI chips. Nvidia plans to invest $5 billion in Intel stock, which is quite a sizable commitment.
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The Motley Fool Stock Advisor claims an impressive average return of 1,047%, which far outstrips the S&P 500’s performance, standing at 195%.
