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Amazon and NVIDIA Collaborate on Generative AI Innovations

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Amazon (AMZN) has announced a partnership with NVIDIA (NVDA) to turbo-charge its generative artificial intelligence (β€œAI”) innovations.

Customers will benefit from the advanced supercomputing infrastructure, software, and services brought by this collaboration.

The latest extension of the partnership will allow Amazon’s cloud computing platform, Amazon Web Services (β€œAWS”), to offer NVIDIA GH200 Grace Hopper Superchips with new multi-node NVLink technology.

This ground-breaking development will enhance the training of generative AI and large language models by hosting NVIDIA DGX Cloud, an AI-training-as-a-service on AWS.

In addition, both companies are gearing up to design an ultrafast GPU-powered AI supercomputer through Project Ceiba. The supercomputer will be backed by GH200 NVL32 and Amazon EFA interconnect.

Amazon’s solidifying prospects in the promising generative AI market are likely to instill investor optimism in the stock. Amazon has returned 73.9% on a year-to-date basis.

Amazon.com, Inc. Price and Consensus

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Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

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Amazon Expands Generative AI Efforts

Apart from the abovementioned endeavors, Amazon intends to expand Amazon EC2 instances with the support of NVDA.

AWS will introduce three instances, namely P5e, G6, and G6e instances, which will be powered by NVIDIA H200 Tensor Core, NVIDIA L4, and NVIDIA L40S GPUs, respectively.

The underlined partnership also brings NVIDIA software, namely NVIDIA NeMo Retriever and NVIDIA BioNeMo, to AWS to accelerate generative AI development for custom models.

A Growing Market

Growing generative AI efforts are expected to aid Amazon in capitalizing on the immense growth prospects present in the generative AI market.

A Bloomberg report shows that the market is expected to reach $1.3 trillion by 2032, seeing a CAGR of 42% over 2022-2023.

Per an Allied Market Research report, the global generative AI market’s value is likely to hit $191.8 billion by 2032, witnessing a CAGR of 34.1% between 2023 and 2032.

Zacks Rank & Other Stocks to Consider

Currently, Amazon carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader technology sector are Badger Meter BMI and Arista Networks ANET. While Badger Meter sports a Zacks Rank #1 (Strong Buy), Arista Networks carries a Zacks Rank #2 (Buy).

Shares of Badger Meter have gained 57% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 20.39%.

Shares of Arista Networks have surged 79.4% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 19.77%.

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It’s credited with a β€œwatershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.

It could rival or surpass other recent Stocks Set to Double like Boston Beer Company, which shot up +143.0% in little more than 9 months and NVIDIA, which boomed +175.9% in one year.

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report

Badger Meter, Inc. (BMI) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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