Last week, Nvidia Corp
The company flagged the partnerships at Nvidia's 2024 GTC AI conference, where the company unveiled about two dozen new AI-based healthcare tools, marking a significant push into the medical sector.
Raj Joshi from Moody's Ratings emphasized Nvidia's crucial role in facilitating previously complex tasks in healthcare, indicating the sector's potential for Nvidia's revenue outside the tech sphere, CNBC reports.
Nvidia's shares have surged by nearly 100% year-to-date, with the biotech industry showcasing the untapped potential for AI to expedite drug discovery and repurpose medications for new diseases.
Arda Ural from EY Americas noted the shift from hope to tangible outcomes in AI's impact on the pharmaceutical, medtech, and biotech industries.
The drug development process, known for its lengthy timeline and high failure rate, could see significant improvements with AI, making it a focus area for about 41% of biotech CEOs surveyed by EY.
Nvidia's conference emphasized its long-term commitment to healthcare, with Colette Kress, Nvidia's CFO, detailing the company's advancements in AI for drug discovery and other medical applications.
In 2023, Nvidia invested $50 million in Recursion Pharmaceuticals Inc
Analysts are highly optimistic about Nvidia's future, particularly with its new GPU architecture, Blackwell, and its position in the generative AI market.
They flagged Nvidia's competitive pricing and leadership in AI, pointing to Nvidia's substantial total addressable market (TAM) and strategic pricing to outcompete rivals like Advanced Micro Devices, Inc
Analysts project significant revenue and EPS growth, driven by Nvidia's innovations and its pivotal role in accelerated computing and AI development across various industries.
Nvidia stock gained over 261% in the last 12 months. Investors can gain access to the stock via VanEck Semiconductor ETF
Price Action: NVDA shares traded higher by 1.57% at $957.85 on last check Wednesday.
