Why Nvidia Stock Popped Today

What happened

Shares of Nvidia (Nasdaq: NVDA) stock inched up a respectable 2% as of 2:15 p.m. EDT Monday after the graphics, crypto-mining, and artificial intelligence semiconductor manufacturer announced an advance in the latter part of its business this morning.

As Nvidia revealed, it is setting up a “hosted AI development hub” called the “NVIDIA Base Command Platform” to offer its customers “instant access to powerful computing infrastructure wherever their data resides.”  

A glowing green stock arrow against a black background.

Image source: Getty Images.

So what

NVIDIA Base Command Platform went live in May for “early access” customers, but it is now available for anyone who wants to lease access to the company’s “NVIDIA DGX SuperPOD supercomputers” month to month to accelerate their own efforts at developing and testing AI algorithms.

Nvidia is pricing the service at $90,000 per month and up — with a three-month minimum commitment.

Now what

Nvidia noted that this is its first hybrid cloud offering to customers, but seemed to imply that more offerings could follow because “as enterprise AI adoption grows, so does demand for faster access to the world-leading infrastructure offered by NVIDIA and our partners.”

The company did not specify precisely where within Nvidia the new service would be hosted (i.e., where the revenue will show up if it’s a success). It seems most likely, though, that NVIDIA Base Command Platform will fall within the company’s “Compute & Networking” division, which is already Nvidia’s fastest growing business, with revenue more than doubling last year, according to data from S&P Global Market Intelligence.

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View more information: https://www.fool.com/investing/2021/08/02/why-nvidia-stock-popped-today/

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