NVIDIA Will Win Machine Learning, Trip Chowdhry Argues

Global Equities Research is confident that NVIDIA Corporation NVDA has the capability to win machine learning or Deep Learning due to its acquisition of Nervana and XEON Phi Deep Learning processor. Following the news, the stock advanced more than 3 percent.

Analyst Trip Chowdhry views machine and deep learning as a passion for NVIDIA. However, it is merely a hobby for Intel Corporation INTC.

In a research note, the brokerage said, "We continue to insist that the right investment framework is based on Machine Learning Practitioners framework, as we presented it in our September 11 report." The lead analyst termed the semiconductor approach as flawed.

Global Equities Research listed the following factors in favor of its opinion:

• NVIDIA enjoys Business and Generational Technological advantage.
• The company has the advantage of economics of scope and scale.
• Its Graphic Processing Units are deployed in SuperClouds of Microsoft Corporation MSFT Azure and Amazon.com, Inc. AMZN AWS that record continued year-over-year growth of 100 percent.
• Apple Inc. AAPL's second half of the current year's Compute budget jumped 250 percent from the first half.
• NVIDIA has over 500,000 developers on its CUDA parallel libraries.
• Technological advantage was maximized for more than 20 years and most of them carried over from Game domain.