PubMatic stock soars after NVIDIA partnership delivers 5x faster ad processing

Published 08/10/2025, 13:22
© Reuters

Investing.com -- PubMatic (NASDAQ:PUBM) stock rose 13% after announcing significant performance improvements from its multi-year technical collaboration with NVIDIA, which has enabled the company to process advertising decisions up to five times faster than traditional systems.

The independent ad tech company has integrated NVIDIA’s accelerated computing technology across its infrastructure, reducing inference latency from the industry standard of 5-10 milliseconds to approximately 1 millisecond. This improvement has resulted in 85% fewer auction timeouts, unlocking revenue previously lost to technological restrictions.

PubMatic’s implementation of NVIDIA technology includes L40S GPUs for real-time ad decisioning, Triton Inference Servers for optimized ad request routing, and RAPIDS Accelerator for Apache Spark to deliver faster analytics. The infrastructure overhaul also reduces energy consumption by 30% while delivering superior performance.

The collaboration enables PubMatic to compete with walled gardens by bringing advanced AI capabilities to the open internet. The company’s owned and operated infrastructure now supports microsecond decisioning at scale, processing trillions of daily advertising decisions significantly faster than consumer AI applications.

"We’ve always believed that technology should empower the many, not just the few," said Mukul Kumar, Co-Founder & President of Engineering at PubMatic. "This collaboration with NVIDIA exemplifies how innovation happens, through iterative testing, shared real-world performance data, and truly optimizing for programmatic advertising’s unique challenges."

The enhanced infrastructure has supported PubMatic’s AI-powered product innovations throughout 2025, including platforms for buyers and publishers featuring generative and agentic AI capabilities. The company also launched a Live Sports Marketplace designed to handle the extreme scale and unpredictability of premium live sports streaming events.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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