Nvidia seen gaining in ChatGPT as it has 'captured the fancy' of Wall Street
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When Nvidia (NASDAQ:NVDA) reported its fiscal fourth-quarter results last week, Chief Executive Jensen Huang made no secret about how he sees artificial intelligence playing a role in the chipmaker's future. 
Huang said the AI market is at an "inflection point" and that Nvidia (NVDA) "is essentially the operating system for AI systems today." Investors liked what Nvidia (NVDA) had to say so much that they sent the company's shares up by more than 14% the day after its earnings report and outlook.
When it come to AI, ChatGPT technology has taken much of the spotlight of late. And with all the attentions ChatGPT has gotten, now one of the big questions for Wall Street is how to size the market for the AI technology, and the opportunity it presents for Nvidia (NVDA).
Bernstein analyst Stacy Rasgon said in a research report Monday that the potential ChatGPT opportunity is wide open for Nvidia (NVDA) as its graphic processing chips "are used to both train the neural networks responsible as well as handle the inferencing of the queries themselves" with ChatGPT.
"It [ChatGPT] has captured the fancy of investors who are all trying to figure out what it means, how it works, how big it will be, and who will benefit," Rasgon said.
According to Rasgon, there have been numerous attempts to estimate the size of the market opportunity from ChatGPT, and those efforts are particularly focused upon Nvidia (NVDA) because its GPU technologies are used for ChatGPT and many other machine-learning applications.
"[Nvidia's GPUs] handle a variety of calculation precisions," Rasgon said, adding that the GPU opportunity from ChatGPT and other large language models "could be in the multiple tens of billions of dollars annually at scale."
Meanwhile, Bank of America analyst Justin Post said Monday thatGoogle (GOOG) still has "a big head start" in AI as it jockeys for position against its top AI rival, Microsoft (MSFT) despite Microsoft's (MSFT) recent massive investments in ChatGPT developer OpenAI.