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Nvidia, the global AI leader, is expected to strengthen its dominance in the AI market as the launch cycle of its new products is being shortened.
Moon Jun Ho, a researcher at Samsung Securities, believes that “The anticipation of Nvidia’s dominance in the AI market is continuously strengthening due to the shortened new product launch cycle, enhanced software solutions, and the potential for entering the custom semiconductor business.”
Nvidia is maintaining its technology gap in products by advancing the launch of new products. The B100/200, scheduled for shipment at the end of the year, is expected to improve AI computing performance by more than five times compared to the current H100 product, thanks to the included HBM3e 192GB.
At this year’s GPU Technology Conference, Nvidia emphasized providing the software (NVIDIA Inference Microservice) that customers can use immediately or even offering the AI Foundry Service to develop it on their behalf.
Researcher Moon Jun Ho analyzed, “Existing customers will inevitably strengthen their dependence to utilize the new software, and the potential to capture new prospective customers is also prominent. This factor quenches the company’s competitive risk, which has maintained hardware sales through software.”
Along with this, there is a belief that the potential entry into the custom semiconductor business can be a strategy to hedge the internalization risk of customers in the mid to long term.
Moon judged, “Considering the high-profit visibility that distinguishes it as an AI leader and the current valuation, it is still the most attractive in the global semiconductor sector.”
This year, the company’s stock is trading at a forward price-earnings ratio (PER) of 37, below the five-year average of 40. This suggests that its relative appeal could be further highlighted.
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