NVIDIA has announced a multi-year strategic partnership with AI startup Thinking Machines Lab. As part of the deal, Thinking Machines will deploy at least one gigawatt of Nvidia’s Vera Rubin systems. Nvidia CEO Jensen Huang called the startup’s team “world-class.” The news comes as Nvidia stock shows strong investor demand, trading near its 52-week high and receiving a ‘strong buy’ rating from Barclays with a $275 price target.
NVIDIA (NVDA) and Thinking Machines Lab have entered a multi-year strategic partnership. The startup, founded last year, has agreed to deploy at least one gigawatt of Nvidia’s Vera Rubin systems.
Nvidia CEO Jensen Huang stated, “Thinking Machines has brought together a world-class team to advance the frontier of AI.” He expressed enthusiasm about partnering to realize the startup’s vision for AI’s future.
Nvidia continues to lead the ongoing AI boom, with its stock favored by investors. Its shares are up over 73% in the last year and have gained roughly 1,300% since March 2021.
Wall Street is currently bullish on Nvidia stock to continue its rebound. Barclays analyst Thomas O’Malley recently issued a ‘strong buy’ rating with a $275 price target.
O’Malley recommended clients take an entry position at its then-current price of $170-177. He cited Nvidia’s domination in the AI sector as a key reason for his bullish outlook.
At $184, Nvidia stock is trading near the top of its 52-week range and above its 200-day simple moving average. Demand from both retail and institutional investors remains strong.
The company’s recent investments in AI startups like OpenAI and now Thinking Machines Lab have proven beneficial. Nvidia shows no immediate signs of slowing its strategic investment pace.
