This stock has been moving in tandem with Nvidia. How deep do the parallels run?
Subscribe to enjoy similar stories. Artificial intelligence (AI) is a key emerging theme that promises to reshape the future. And US-listed Nvidia is undoubtedly the flagbearer of this movement.
Without its graphics processing units (GPUs), training AI models would be nearly impossible. It's no surprise that, as the demand for GPUs surged, Nvidia's stock price exploded as well. Interestingly, in India, another stock has been following a trajectory similar to Nvidia: Netweb Technologies.
Both Nvidia and Netweb have tripled investor wealth over the one and a half years leading up to 2024. Both companies have seen a significant correction this year, amid upheavals in the global AI landscape. Nvidia's business model is deeply entrenched in the AI space.
GPUs manufactured by Nvidia are the primary hardware required to train an AI model today. Nvidia has an OEM partnership with Netweb for the design and development of AI GPU systems based on Nvidia's Blackwell platform. So, their businesses do share common ground—GPU development.
The businesses also share some of the same challenges. A few days back, China caused a major disruption in the AI space with its low-cost yet efficient AI model DeepSeek. Considering that DeepSeek did what ChatGPT had done, but using only a fraction of the GPUs used by ChatGPT, both Nvidia and Netweb stocks saw significant correction.
Read more on livemint.com
