Nvidia (NVDA) GTC Preview: New “Feynman” AI Chip Signals Next Phase of the AI Race

Nvidia Corporation NVDA +2.25% ▲ is set to take center stage this week as the company opens its annual GTC developer event in San Jose. Chief Executive Officer Jensen Huang will present the keynote to a crowd of more than 18,000 people and outline the company’s plans for the next phase of the AI market.

Claim 70% Off TipRanks Premium

• Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions

• Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

According to a Reuters report, Nvidia is expected to unveil a new AI chip called Feynman. The chip is named after physicist Richard Feynman and will likely represent the next step in Nvidia’s AI hardware roadmap.

The event runs for four days and will also cover Nvidia’s data center tools, its CUDA software platform, AI agents, and robotics systems. These areas are all part of Nvidia’s effort to stay at the center of the fast-growing AI market.

“Nvidia is likely to detail a next-generation AI chip called Feynman,” the Reuters report said ahead of the keynote.

At the moment, Nvidia is the most valuable listed company in the world with a market value of over $4.3 trillion. Its graphics processors have become the main engines that power large AI models used by firms across the tech sector.

Meanwhile, NVDA shares dropped 1.58% on Friday, closing at $180.25.

The Shift Toward AI Inference

However, the AI market’s focus is starting to change. Over the past few years, technology firms have spent hundreds of billions of dollars on chips used to train AI models. Now, many of those same firms are shifting attention toward running AI tools for large numbers of users.

This stage is known as inference. It is the process where an AI system uses what it learned during training to answer questions or produce results in real time.

Nvidia is expected to highlight its work in this area. The company recently licensed technology from startup Groq in a deal valued at $17 billion. Groq focuses on chips that handle inference tasks quickly and at lower cost. This move shows how important inference computing is becoming for the AI industry.

“Groq specializes in fast and cheap inference computing work, in which an AI model takes what it has already learned and uses it to answer a question or make a prediction in real time.”

Competition Is Growing

Meanwhile, Nvidia is facing more competition in this part of the market. Some of the pressure is coming from the same large technology firms that buy its chips.

Companies such as OpenAI, Anthropic, and Meta Platforms META +2.59% ▲ are building AI tools that serve hundreds of millions of users. At the same time, several major technology firms are designing their own custom chips for some AI tasks.

As a result, the announcements at this year’s GTC event may offer investors a clearer view of how Nvidia plans to defend its lead as the AI market enters its next stage.

Is Nvidia Stock a Buy, Sell, or Hold?

On the Street, Nvidia holds a Strong Buy consensus rating. The average NVDA stock price target is $273.61, implying a 51.79% upside from the current price.

Disclaimer & DisclosureReport an Issue