Microsoft (NASDAQ: MSFT) recently had its 2024 Surface AI event, where it announced new AI developments and products meant to give all customers an AI-powered personal assistant right at their fingertips. During the event, it was revealed that Nvidia (NASDAQ: NVDA) is set to supercharge Microsoft’s new Copilot+ AI PCs with its RTX GPUs, and we might see this in action sooner than we think, which could have a positive impact on NVDA stock.
Nvidia GPUs to Accelerate Copilot+ Capabilities
This new AI PC collaboration between Nvidia and Microsoft aims to bring responsive AI experiences to PCs, powered by dedicated GPU acceleration to a range of users including gamers, creators, enthusiasts, and developers. With Nvidia GPUs, Copilot+, which is Microsoft’s AI-powered software, will be able to more effectively provide real-time suggestions and completions as users work across gaming, content creation, and development workflows. Overall, this integration marks an important step in making advanced AI features accessible in consumer PCs.
According to Nvidia, the GPUs that will be used in Copilot+ PCs will be shipped out in the coming months. Meanwhile, Microsoft said that they will leverage Nvidia’s power-efficient system-on-a-chip designs and RTX GPUs to provide performance benefits, especially for heavy AI workloads. In addition to that, Nvidia has further plans for developers and creators. In fact, the company announced a new Nvidia R555 Game Ready Driver that facilitates running AI models locally on a Windows 11 PC in a much faster manner. Not only that, but Nvidia claims that large language models can run up to 3x faster with the new driver.
Until now, PCs like the new one from Microsoft relied solely on CPUs and NPUs for machine learning workloads. However, with Nvidia onboard, Copilot+ PCs can truly pack a heavyweight punch when it comes to AI, with not just the power-efficient CPU and its NPU running the show, but a powerful discrete mobile GPU getting in on the act, too.
The GPU cores specializing in parallel processing will turbocharge the real-time inferences and suggestions from Microsoft’s productivity-enhancing software. Therefore, tasks like code autocompletion, video upscaling, and image enhancement will happen in the blink of an eye. Nvidia is wasting no time in accelerating the future of AI-powered laptops. While the “coming months” timeline seems intentionally vague, their announcement suggests that Team Green is primed to make the move in the nearer future.
Nvidia’s AI PC Market Growth Opportunity
This collaboration is definitely part of Nvidia’s plans to expand its presence in the AI PCs market, in which it has great opportunities because there are hefty growth expectations. In fact, according to market research firm Canalys, 19% of PCs shipped in 2024 will be AI-capable, and this percentage will grow to 60% by 2027. This also matches up with the recent reports around Nvidia teaming up with MediaTek to create an AI chip for laptop, which will be completed sometime in the third quarter of 2024, but it might not be seen in action until 2025.
Additionally, Nvidia mentions combining its mobile RTX GPUs with “new power-efficient systems-on-a-chip” and currently, the only offering in town is Qualcomm’s (NASDAQ: QCOM) new Snapdragon X. Therefore, that’s a possibility, but another possibility is that Nvidia could be preparing to equip Intel (NASDAQ: INTC) or AMD(NASDAQ: AMD)-powered Copilot+ PCs with RTX GPUs down the line when those devices emerge, likely with the launch of Intel Lunar Lake and AMD Strix Point, which meet the more stringent NPU requirements for Copilot+ PCs. Regardless of the case, there’s no doubt that RTX graphics will be a powerhouse addition to help drive Windows 11’s incoming AI features.
NVDA Stock Updates
During its Q1 earnings call, Nvidia announced its largest stock split to date, and the company’s management expects this split to drive up excitement between new investors to boost the share price. Additionally, Nvidia increased its quarterly dividend by 150%, from $0.04 to $0.10 per share, or $0.01 on a post-split basis.
The first increased dividend payment will be made on June 28th. However, even at the new, higher level, the yield will still be paltry, amounting to just four-tenths of 1%. These two events, as well as Nvidia’s amazing earnings and guidance, could push investors to consider buying NVDA stock, but there are a lot more reasons why Nvidia is a great buy.
For starters, many analysts say that it’s still very early in the AI revolution, as the worldwide AI market was valued at $2.4 trillion in 2023, and it’s expected to soar to $30.1 trillion by 2032, according to Expert Market Research. As the undisputed AI market leader, Nvidia is well positioned for future success. Also, the company’s long track record of consistently strong operating and financial results, combined with amazing NVDA stock price gains, show why it continues to be a winning investment.
There’s also the fact that Nvidia’s long-awaited Blackwell chips are releasing this year, which is a whole new source of revenue for the company. During the earnings call, the company’s management told investors to expect a lot of Blackwell revenue this year, and that demand for the H200 and Blackwell is well ahead of supply and they expect that demand may exceed supply well into the next year.
Disclaimer
Please visit and read our disclaimer here.
