NVIDIA launches NVLink Fusion for custom AI silicon

TAIPEI - NVIDIA, a dominant force in the semiconductor industry with over $130 billion in annual revenue and an impressive 75% gross profit margin, has announced the introduction of NVIDIA NVLink Fusion, a new technology designed to enable the creation of semi-custom artificial intelligence (AI) infrastructure. This innovation, unveiled at COMPUTEX in Taipei, allows industry partners to scale-up their AI capabilities to meet the growing demands of model training and AI inference workloads. According to InvestingPro, NVIDIA maintains a perfect Piotroski Score of 9, indicating exceptional financial strength and operational efficiency.

NVLink Fusion leverages NVIDIA’s computing fabric, NVLink, which is touted as the most advanced and widely adopted in the world. Partners such as MediaTek, Marvell, Alchip Technologies, Astera Labs, Synopsys, and Cadence have already adopted NVLink Fusion, aiming to meet the stringent requirements of data-intensive AI applications. With revenue growth of 114% year-over-year, NVIDIA’s market dominance continues to strengthen. Investors seeking detailed analysis can access comprehensive valuation metrics and 20+ additional ProTips through InvestingPro’s exclusive research reports.

The technology also facilitates the integration of CPUs from companies like Fujitsu and Qualcomm Technologies with NVIDIA GPUs, creating powerful AI factories. Fujitsu plans to utilize its next-generation FUJITSU-MONAKA 2-nanometer, Arm-based CPU, while Qualcomm Technologies seeks to enhance data center infrastructure with its custom CPU technology.

NVIDIA’s CEO, Jensen Huang, emphasized that the data center landscape is undergoing a fundamental rearchitecture due to AI becoming integral to computing platforms. NVLink Fusion is positioned as a catalyst for this transformation, offering partners the ability to develop specialized AI infrastructures.

The new technology promises to enable cloud providers to scale out AI factories to millions of GPUs. It supports a range of NVIDIA technologies, including ConnectX-8 SuperNICs and Spectrum-X Ethernet, as well as the upcoming Quantum-X800 InfiniBand switches with co-packaged optics.

Additionally, NVIDIA’s fifth-generation NVLink platform includes the GB200 NVL72 and GB300 NVL72, compute-dense racks that deliver bandwidth of 1.8 TB/s per GPU, significantly outpacing the current PCIe Gen5 speeds.

NVIDIA Mission Control, a unified operations and orchestration software platform, is set to power AI factories connected with NVLink Fusion. It is designed to automate the management of AI data centers and workloads, streamlining the deployment and operation of AI models.

The NVLink Fusion silicon design services and solutions are currently available from the aforementioned partners. NVIDIA (NASDAQ: NVDA), recognized as a leader in accelerated computing with a market capitalization of $3.3 trillion, bases this press release on forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from expectations. For investors seeking deeper insights, InvestingPro offers exclusive access to detailed financial analysis, Fair Value estimates, and comprehensive research reports that transform complex Wall Street data into actionable intelligence.

This announcement is based on a press release statement and aims to provide a factual report on the latest developments from NVIDIA without endorsing any claims.

In other recent news, NVIDIA Corporation has been the focus of multiple analyst reports and business developments. Mizuho Securities raised its price target for NVIDIA to $168, maintaining an Outperform rating, ahead of the company’s upcoming earnings report. Analyst Vijay Rakesh expects NVIDIA’s earnings for the April and July quarters to potentially surpass forecasts, despite challenges like a $5.5 billion write-down related to the H20 product. Meanwhile, HSBC maintained a Hold rating with a $120 price target, projecting NVIDIA’s first-quarter sales to align with management’s guidance at $43.5 billion, slightly above consensus estimates.

Furthermore, NVIDIA has secured a deal to supply chips to Saudi Arabian AI firm Humain for a significant data center project, driving its premarket trading gains. The company’s prospects in China also appear promising, with significant growth anticipated in the coming years. These developments come amid broader movements in the tech sector, where NVIDIA is part of the ’Magnificent Seven’ group of influential tech stocks. The group has experienced varied stock movements, with NVIDIA leading gains following its recent deal. Investors are keenly awaiting NVIDIA’s earnings announcement to assess how these factors will impact its financial performance.

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