Nvidia (NVDA) shares jumped higher in pre-market trading after the chipmaker unveiled a new set of tools designed for software professionals developing programs for the so-called 'metaverse'.
Nvidia will market the tools, known as Omniverse Enterprise -- a virtual world simulation and collaboration platform for 3D workflows -- through partners such as Dell Technologies and Lenovo Group, while leveraging its own chips in the development of the kind of three-dimensional world's expected in metaverse projects from social media giant Facebook (FB) .
“A constant theme you’ll see is how Omniverse is used to simulate digital twins of warehouses, plants and factories, of physical and biological systems, the 5G edge, robots, self-driving cars, and even avatars," said Nvida CEO Jensen Huang. "With Omniverse, we now have the technology to create new 3D worlds or model our physical world.”
Nvidia shares were marked 4% higher in early trading Tuesday to change hands at $322.00 each, a move that would extend the stock's year-to-date gain to around 144.2%.
BMO Capital Markets analyst Ambrish Srivastava, who boosted his price target on the group by $125, to $375 per share following Nvidia's annual GTC technology conference last night, said its Metaverse capabilities provide a "much larger" earnings opportunity than he had first assumed.
"While the recent announcements from Facebook/Meta have put the attention on the topic, NVIDIA has been ahead of the curve and has been creating its Omniverse platform for enabling the metaverse in multiple industries," Srivastava said. "We see the company as the key enabler and beneficiary of this technology."