Nvidia's stock is experiencing an after-hours boost following the announcement of a collaboration with Apple to enhance large language model inferencing for Nvidia GPUs. This partnership, revealed on December 18, 2024, involves the use of a new approach called Recurrent Drafter, or ReDrafter, which utilizes a recurrent neural network draft model. The collaboration is expected to significantly improve the performance of Nvidia's GPUs, potentially increasing demand for their products in the AI sector.
Additionally, Nvidia's stock is benefiting from positive sentiment driven by Microsoft's substantial purchase of Nvidia's AI chips. Microsoft has acquired 485,000 Hopper chips from Nvidia this year, more than double the amount purchased by Meta, Nvidia's second-largest customer in the U.S. This significant order underscores the strong demand for Nvidia's AI technology and reinforces the company's leading position in the AI chip market.
Nvidia (NVDA) shares rose 1.71% to $131.11 in after-hours trading, following a close at $128.91 on December 18, 2024.