Analyst Upgrades NVIDIA to Buy Status, With Coronavirus as a Catalyst
It seemed chipmaker NVIDIA (NASDAQ: NVDA) was just getting its groove back before the COVID-19 coronavirus pandemic laid waste to Wall Street, punishing good and bad stocks alike. The company, which specializes in the graphics processing units (GPUs) that are used in gaming, data centers, and artificial intelligence (AI), saw its stock price fall as much as 38% before recouping some of those losses.
It's the AI applications that could provide a floor for NVIDIA's stock, as big tech and government researchers are turning to AI to help combat the coronavirus, using its lightning-fast processors and algorithms to quicken the pace of exploration necessary to find a vaccine or treatment. NVIDIA has long been the go-to for running AI systems, the result of its cutting-edge GPU technology and software stacks used by researchers to do in hours what once took days.
NVIDIA's strong financial position could help insulate it in uncertain times, while the use of AI against the coronavirus could invigorate the demand for GPUs and AI supercomputers in medical research.
Source Fool.com