NVIDIA Holds Strong in WSB Rankings Amid GPU Shift and Acquisition Buzz

NVIDIA's latest ascent to the third spot in the WSB ranking, maintaining its position from the previous day, has attracted significant attention amid its recent developments. Despite a 1.92% drop, marking a four-day decline totaling 4.84%, NVIDIA's strategic movements remain a focal point.

Reports suggest NVIDIA is preparing for the release of its next-generation flagship GPU, the RTX 5090, by discontinuing production of the current RTX 4090 models. This transition, expected to commence in October, indicates a significant shift as these models have been market leaders since their 2022 release, unmatched in gaming performance. The announcement surprised many consumers and retailers, given the high demand and cost of these GPUs.

While NVIDIA has not officially confirmed these plans, retailers warn of potential shortages post-October, potentially driving prices even higher in an already high-demand scenario. The discontinuation aligns with expectations to clear existing inventory ahead of the RTX 50 series launch. The Chinese market might see the RTX 5090 D as a replacement to fulfill new demands.

Rumors of the RTX 5090 incorporating the new Blackwell architecture, consuming roughly 600W, and featuring GDDR7 memory suggest a significant leap in performance. Analysts predict the new model could exceed the previous generation's price point of 12,999 yuan, reflecting these advancements.

Concurrently, NVIDIA is reportedly in advanced talks to acquire OctoAI for approximately $165 million, aiming to enhance its software and cloud computing capabilities. OctoAI, originally focusing on machine learning model deployment, shifted to services allowing rapid AI model adjustments. This acquisition aligns with NVIDIA's strategy to lower AI operational costs leveraging its chips.

OctoAI, known for optimizing AI models across various processors, faced challenges with its valuation as NVIDIA's offer might not yield substantial returns for its shareholders. However, this move could face scrutiny from the U.S. Department of Justice, considering OctoAI’s collaborations with NVIDIA's competitors.