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OAKLAND, Calif. - Block, Inc. (NYSE: XYZ), a leading technology company with annual revenue of $24.1 billion and strong financial health according to InvestingPro analysis, announced today it will be the first in North America to deploy the NVIDIA DGX SuperPOD with DGX GB200 systems, marking a significant advancement in its open source generative AI research. Currently trading below its Fair Value, Block maintains a healthy current ratio of 2.33, indicating strong operational liquidity. The deployment, set to take place at an Equinix data center, will focus on developing AI models with novel capabilities in underexplored areas.
Dhanji R. Prasanna, CTO of Block, emphasized the importance of not only applying AI to existing problems but also advancing the AI frontier in a way that democratizes the technology. Block’s commitment to open source is evident as they plan to share their findings and results with the wider community.
Previously, Block garnered attention for its work on deepfake detection and hyper-realistic generated audio. With its engineering-centric approach, Block is poised for innovation in generative AI models and their diverse applications.
The NVIDIA DGX SuperPOD, powered by Grace Blackwell, is designed for cutting-edge generative AI, enabling the training of larger and more complex models. Charlie Boyle, Vice President of DGX platforms at NVIDIA, highlighted that the advanced infrastructure will allow Block’s teams to tackle real-world challenges with state-of-the-art AI supercomputing.
The collaboration with Equinix provides Block with AI-ready data centers that offer data privacy, compliance, high-performance, and low-latency connectivity. Jon Lin, Chief Business Officer at Equinix, noted that companies like Block can benefit from the customizable AI solutions offered by their neutral, cloud-adjacent platform.
Block’s move to adopt NVIDIA’s latest AI infrastructure follows the launch of "codename goose," an open source AI agent framework designed to link large language models to real-world actions. Initially aimed at software engineering applications, the framework is also being explored for other uses by Block and the open source community.
This initiative by Block, Inc. is based on a press release statement and represents a strategic step in harnessing the power of AI to enhance the global economy.
In other recent news, Block Inc. reported fourth-quarter earnings that fell short of expectations, prompting several analysts to adjust their outlooks. Piper Sandler lowered its price target from $101 to $85, while maintaining an Overweight rating, noting that Block’s adjusted EBITDA exceeded consensus estimates despite revenue and EPS misses. Similarly, Canaccord Genuity reduced its price target to $100 from $120, citing that Block’s gross profit met guidance, though EPS was below market expectations. Mizuho Securities also revised its price target down to $86 from $110, expressing concerns over stagnant growth in Monthly Active Users for Cash App.
Meanwhile, Morgan Stanley upgraded Block’s stock rating from Underweight to Equalweight, setting a new price target of $65, based on a reevaluation of the company’s valuation and growth potential. BMO Capital Markets upgraded Block’s rating from Market Perform to Outperform, despite reducing the price target to $89, citing an attractive entry point for investors following a recent sell-off. Analysts from these firms highlighted Block’s strategic initiatives, including the expansion of Cash App features like Borrow and Buy Now, Pay Later, as potential drivers for future growth.
Block’s management remains optimistic about the second half of 2025, especially with anticipated growth from Cash App and Square. The company is focusing on expanding its user base and enhancing monetization strategies. Despite mixed financial results, analysts have noted potential growth opportunities and strategic plans that could positively impact Block’s performance moving forward.
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