Nvidia Unveils Spectrum-XGS Ethernet, Boosts Stock by 1.7% and Projected 10.02% Upside

Nvidia has launched Spectrum-XGS Ethernet, boosting its stock by 1.7%. Analysts forecast a potential 10.02% upside to its current price, with a consensus recommendation of "Outperform" and a GF Value estimate of $292.16, suggesting a 64.01% upside.

Nvidia (NASDAQ: NVDA) has made a significant announcement with the launch of its Spectrum-XGS Ethernet, which aims to enhance the capabilities of data centers and AI super factories. The company unveiled the new technology on Friday, with shares rising by 1.7% in late morning trading. The Spectrum-XGS Ethernet platform is designed to extend the "extreme performance and scale" needed by AI super factories, serving as a "third pillar" alongside scaling up and out capabilities.

Nvidia's CEO and founder, Jensen Huang, stated that "The AI industrial revolution is here, and giant-scale AI factories are the essential infrastructure." The Spectrum-XGS Ethernet will enable data centers to scale beyond their physical boundaries, linking them across cities, nations, and continents into vast, giga-scale AI super factories. The technology automatically adjusts the network based on the distance between data centers and manages congestion control, latency, and telemetry. It nearly doubles the performance of Nvidia's Collective Communications Library.

Hyperscalers like CoreWeave (CRWV) are already integrating the Spectrum-XGS Ethernet into their operations, with CoreWeave being among the first to connect its data centers. Nvidia is expected to report its next quarterly results after the close of trading on August 27. Analysts predict the company to earn $1.01 per share on $46 billion in revenue [1].

Analysts also forecast a potential 10.02% upside to Nvidia's current price, with a consensus recommendation of "Outperform" and a GF Value estimate of $292.16, suggesting a 64.01% upside [2]. This positive outlook is driven by the company's dominance in GPUs and strategic expansion into AI, data centers, and autonomous vehicles.

References:
[1] https://seekingalpha.com/news/4488377-nvidia-unveils-spectrum-xgs-ethernet-to-give-boost-to-ai-super-factories
[2] https://www.tradingview.com/news/zacks:0a217645e094b:0-nvidia-likely-to-beat-q2-earnings-estimate-how-to-play-the-stock/