Nvidia Highlights Lucrative Returns For Cloud Providers Using Nvidia GPUs

Author: Anusuya Lahiri | July 12, 2024 12:55pm

Nvidia Corp (NASDAQ:NVDA) stock is on a roll thanks to the artificial intelligence frenzy. In June 2024, Nvidia briefly became the world's most valuable company, reaching a valuation of $3.34 trillion.

During the Bank of America Securities 2024 Global Technology Conference, Ian Buck, Vice President and General Manager of Nvidia's hyperscale and HPC business, highlighted the financial benefits of investing in GPUs, the First Post reports.

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He mentioned that cloud providers see substantial returns on investment with Nvidia's GPUs. Over four years, providers can generate five dollars for every dollar spent on GPUs.

Buck pointed out that inferencing tasks are even more profitable, with a seven-dollar return for each dollar invested in the same period, and this figure is on the rise.

Nvidia is actively addressing the growing demand for AI inference with products like Nvidia Inference Microservices (NIMs), which support popular AI models such as Llama, Mistral, and Gemma. The company is also focusing on its new Blackwell GPU.

Buck emphasized the necessity of early collaboration, noting the significant planning required for data center construction projects.

Investors can gain exposure to Nvidia through Vanguard Information Tech ETF (NYSE:VGT) and iShares S&P 500 Growth ETF (NYSE:IVW).

Price Action: NVDA shares traded higher by 2.35% at $130.39 at the last check on Friday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Posted In: IVW NVDA VGT