“We see NVDA as a major beneficiary of the fourth tectonic shift in computing, in which parallel processing captures share in the computing market,” Lipacis said, according to CNBC.
“We think NVDA’s decade-long investment in [compute unified device architecture] has resulted in a multiyear competitive advantage.”
Nvidia recently traded at $749.12, up 5.2%. The stock has jumped 41% over the past six months amid buoyant demand for its chips.
Lipacis sees a strong opportunity for software licensing in the data center.
"While software is mostly embedded within hardware sales today, enterprise [artificial intelligence] software in the data center can potentially be licensed. [That’s] similar to how VMware (VMW) - Get Report licenses its system software," he said, according to MarketWatch.
On June 14, TheStreet.com’s Brent Kenwell analyzed how far Nvidia’s rally might extend.
On the same day, the Telegraph reported that Qualcomm (QCOM) - Get Report had expressed an interest in British microchip company Arm if its $40 billion sale to Nvidia was blocked.
Cristiano Amon, Qualcomm’s incoming chief executive, told the Telegraph it would be prepared to buy a stake in Arm alongside a consortium of industry players if owner SoftBank SFTBY were to float the company instead of selling it to Nvidia.