The article was written by Blair Goldenberg, a Financial Analyst at I Know First, and enrolled in a Masters of Finance at Colorado State University.

NVDA Stock Forecast for 2017

Summary

Background on Nvidia Corporation (NVDA)

Review of 2016 Performance

NVDA’s Future

I Know First Forecast on NVDA

Background

Nvidia is the pioneer of GPU-accelerated computing. They specialize in products and platforms for the large, growing markets of gaming, professional visualization, data center, and automotive, artificial intelligence.

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Review of 2016 Performance

Earlier this year, Nvidia released their GPU-accelerated artificial intelligence computing platform. They spent $2 billion on the research and development of the AI system. In June, our analyst Motek Moyen Research wrote an article highlighting this development and how the predictive algorithm of I Know First was bullish on NVDA for the 1 month, 3 months, and 1-year predictions. He also corroborated the prediction with concrete information about their R&D and their lead in their specific field.

More recently, Nintendo and Nvidia are partnering back up again to develop Nintendo’s new gaming system called “Switch.” Nvidia will supply the custom CPU/GPU chip for Nintendo’s new gaming system. This was a big surprise because Nvidia and Nintendo haven’t partnered up since before the Nintendo Wii came out. The partnership between the two companies may prove to be a very fruitful relationship. This is just the beginning, this partnership may influence other gaming companies to jump onboard with the Nvidia CPU/GPU chip and incorporate them into their systems. Microsoft and Sony (i.e. Playstation) are some examples of companies that may decide to use the chip. To read a more in-depth analysis on the systems and the CPU/GPU chip, click here.

Nvidia is also lucky enough to be partnered with Tesla, the electric automotive leader. Tesla recently decided to replace Mobileye (MBLY) with Nvidia’s Computer Vision for its Tesla Autopilot program. Tesla will use Nvidia’s parallel computing platform, Nvidia CUDA Deep Neural Network (cuDNN) to help develop Tesla’s true self-driving cars.

“Using cuDNN 5 of course will require Tesla to buy Nvidia’s Drive PX 2 AI supercomputer for autonomous vehicles. If Tesla aims to build 100k self-driving electric cars per year, it will need to buy 100k units of the Nvidia Drive PX 2. Tesla’s ‘Tesla Vision’ project will have to use Drive PX 2 processor/boards to take advantage of Nvidia’s DriveNet and DIGITS – a deep neural network platform that comes with 9 inception layers, 37 million neurons, 3 convolutional layers and can process 40 billion operations while offering multi-class and single object detections” says Motek.

This will prove to be a great success for NVDA stock prices. Tesla will continually need to use the cuDNN as long as it is making the self-driving car and doesn’t get poached by another company. That means it will be a continuing business relationship that will only grow. Other electric car companies may also decide to invest in Nvidia for self-driving cars because it would take years and billions of dollars to develop a product like the cuDNN. Currently, the future looks bright for NVDA.

In the last year, NVDA has continued to climb and currently stands at $83.64 per share as of Monday, November 14, 2016. Which was down -$4.33 or -4.92% from its previous close of $87.97 per share.

NVDA’s Future

The past year has been a blessing for NVDA, with partnerships that may revolutionize the tech industry as well as the automotive industry. The future is bright for NVDA and they have just reported that they will now be partnering with Microsoft to catapult Artificial Intelligence (AI) even further than it is now. The same technology that Nvidia is using for Tesla’s new self-driving cars is going to be used with Microsoft’s cloud. This means that now AI can be used by just about any business, making it increasingly accessible to the world. With the AI, businesses can provide better experiences for their customers as well as make better decisions for themselves.

“NVIDIA and Microsoft worked closely to accelerate the Cognitive Toolkit on GPU-based systems and in the Microsoft Azure cloud, offering startups and major enterprises:

Greater versatility: The Cognitive Toolkit lets customers use one framework to train models on premises with the NVIDIA DGX-1 or with NVIDIA GPU-based systems, and then run those models in the cloud on Azure. This scalable, hybrid approach lets enterprises rapidly prototype and deploy intelligent features.

or with NVIDIA GPU-based systems, and then run those models in the cloud on Azure. This scalable, hybrid approach lets enterprises rapidly prototype and deploy intelligent features. Faster performance: When compared to running on CPUs, the GPU-accelerated Cognitive Toolkit performs deep learning training and inference much faster on NVIDIA GPUs available in Azure N-Series servers and on premises.(1) For example, NVIDIA DGX-1 with Pascal and NVLink interconnect technology is 170x faster than CPU servers for the Cognitive Toolkit.

Wider availability: Azure N-Series virtual machines powered by NVIDIA GPUs are currently in preview to Azure customers, and will be generally available soon. Azure GPUs can be used to accelerate both training and model evaluation. With thousands of customers already part of the preview, businesses of all sizes are already running workloads on Tesla GPUs in Azure N-Series VMs” (Retrieved from street insider).

I Know First Forecast

Below you can find the recent forecast for NVDA. As you can see, NVDA is projected to do very well in the next month, 3 months and the next year.

15 November 2016

Previously, I Know First also predicted the bullish returns on October 25, 2016, in the long position. NVDA is with more than 25% since this bullish forecast



