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NVIDIA healthcare vertical already a $1bn+ business - JPMorgan

Published 01/09/2024, 02:10 PM
Updated 01/09/2024, 02:12 PM
© Reuters.  NVIDIA (NVDA) healthcare vertical already a $1bn+ business - JPMorgan

JPMorgan analysts maintained an Overweight rating on NVIDIA (NVDA) in a note Tuesday, saying the company's healthcare vertical is already a $1 billion+ business.

The company's healthcare business is driven by the increasing computational demand for AI–drug discovery, genomics, patient diagnostics, medical devices, and robotics.

The assessment was made after NVIDIA's VP of Healthcare, Kimberly Powell, presented at J.P Morgan's 42nd annual Healthcare Conference, the fifth time that they've presented at the conference.

"NVIDIA's leadership position in accelerated computing and AI/Deep learning has enabled the team to leverage its compute platforms/portfolio to target key verticals such as healthcare," said analysts.

"The healthcare business generated $1B+ in FY24, 2-3 years ahead of target (vs. prior expectation of $1B in annual revenue opportunity over the next few years)," analysts wrote. "We believe it's now a top 3 vertical within Nvidia (NASDAQ:NVDA)'s data center business."

Analysts also said NVIDIA's ability to drive accelerated computational solutions through its HPC and AI/DL platforms continues to drive a significant revenue opportunity for the firm.

"Moreover, the team continues to see strong market expansion potential driven by opportunities in wearables, medical/imaging/robotics, and computer-aided drug discovery," they added.

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