Shares of Nvidia (NVDA 0.68%) spiked in March, rising 14.4%, according to data supplied by S&P Global Market Intelligence.
While general market enthusiasm helped lift the stock, there were company-specific catalysts that sent the artificial intelligence (AI) specialist higher.
Image source: Nvidia.
Fingers in a lot of pies
Nvidia kicked off April with a bang. Alphabet (GOOGL +0.77%) (GOOG +0.65%) unveiled the latest additions to Gemma 4, a suite of AI models created by its DeepMind unit and optimized for Nvidia graphics processing units (GPUs). These new models are small, fast, and designed to run on a wide range of devices at the edge. While most AI processing still happens in the cloud, more compact models like these are designed to run locally on smaller devices, including smartphones and high-end workstations — which will fuel the continuing proliferation of AI.
That was just the beginning of Nvidia and Google’s partnership in April. At the Google Cloud Next event in Las Vegas, the pair announced they were collaborating to further advance agentic and physical AI. Through what they called “extreme co-design across chips, systems, and software,” Google introduced A5X AI infrastructure, which delivers a 90% reduction in cost per token for AI inference — at 10 times higher speeds. The system can scale up to 80,000 Nvidia Rubin GPUs at a single location and up to 960,000 in a multisite cluster.
The ability to run AI at this scale and speed, while reducing costs, makes it more attractive and accessible to a wider cross-section of companies.
One of the more eye-catching developments of the month was the release of Nvidia’s Ising, the company’s open-source AI model that increases efficiency and helps reduce the errors inherent in quantum computing. Nvidia reported that Ising “delivers the world’s best AI-based quantum processor calibration capabilities.” The company went on to say that its quantum error-correction decoding is 2.5 times faster and 3 times more accurate than existing approaches.
There’s been a lot of excitement around quantum computing, but future advances will depend on the ability to minimize errors. Nvidia brings this one step closer to reality.
Today’s Change
(-0.68%) $-1.34
Current Price
$197.14
Key Data Points
Market Cap
$4.8T
Day’s Range
$196.68 – $200.24
52wk Range
$110.82 – $216.82
Volume
2.6M
Avg Vol
173M
Gross Margin
71.07%
Dividend Yield
0.02%
Incremental improvements
None of these announcements is a game changer, but each delivers incremental improvements across the AI ecosystem, helping fuel even greater adoption. Taken together, they show orderly progress as AI moves forward.
This could be the beginning of the next leg higher for Nvidia stock. Palantir Technologies just delivered the best financial report in the company’s history. This supports the argument that AI adoption is advancing, which bodes well for Nvidia and its industry-leading GPUs.
At less than 24 times forward earnings, Nvidia stock is attractively priced. As the AI revolution continues, don’t expect it to stay that way for long.
Danny Vena, CPA has positions in Alphabet, Nvidia, and Palantir Technologies. The Motley Fool has positions in and recommends Alphabet, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy.
