NVIDIA's Processors May Soon Power Wal-Mart's Deep Learning Push

Recently, analyst Trip Chowdhry of Global Equities Research wrote in an investor note that Wal-Mart Stores (NYSE: WMT) will ramp up its focus on deep neural networks for its OneOps cloud business and that the retailer will tap NVIDIA's (NASDAQ: NVDA) graphics processing units (GPUs) to make this happen. 

Deep neural networks are used in artificial intelligence processing to allow computers to understand the relationships between pieces of information without having to be specifically programmed to understand that the information is related. Deep neural networks, and the broader deep learning segment, are part of a growing artificial intelligence market.

Chowdhry thinks the ramp-up of Wal-Mart's cloud will happen over the next six months and will be "incrementally positive" to NVIDIA's GPU business. These rumors come after reports surfaced in June that Walmart was asking some of its technology customers to move off of Amazon's Web Service (AWS) cloud business. Chowdhry thinks the Wal-Mart cloud, running on NVIDIA's GPUs, will be one-tenth the size of AWS. If it pans out, this would be a significant move for the retail giant and could bring more GPU sales for NVIDIA.

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Source: Fool.com