NVIDIA Corp.
Launches Open-Source Nemotron Model
NVIDIA released Nemotron 3.5 Lightning, a lightweight AI model that can run on a single GPU in a PC. Companies can download, use and modify the model for free without seeking NVIDIA's permission or paying the company.
The launch marks NVIDIA's first open-source model since Huang joined other technology leaders in urging U.S. policymakers to avoid "premature restrictions" on open models, CNBC reported on Tuesday.
NVIDIA said CrowdStrike, CodeRabbit and Harvey have already tested and customized Nemotron 3.5 Lightning. The company designed the model particularly for AI agents that can perform tasks autonomously.
NVIDIA also introduced NeMo Switchyard, software that can select the least expensive and most suitable AI model for a particular task.
Huang Links Open AI Models to Hardware Demand
NVIDIA stands to benefit from broader adoption of open-source AI because developers still need GPUs to run those models. Lower-cost access to models could also encourage wider AI usage compared with proprietary alternatives from companies such as OpenAI and Anthropic.
"Free AI should be great for hardware," Huang told Axios. "Free AI should be great for chips." Huang has also argued that open models give companies greater control, encourage competition and reduce costs.
NVIDIA Pushes Back Against Restrictions on Open Models
Huang entered the policy debate after China's Moonshot AI introduced Kimi K3, intensifying concerns in Washington over national security and the use of distillation to develop smaller AI models.
NVIDIA joined other U.S. technology companies in asking policymakers not to impose premature restrictions on open-weight models, including those developed in China.
Days after Huang's public defense of open models, NVIDIA also launched an AI safety consortium with companies including Microsoft Corp.
Meta and NVIDIA Step Up U.S. Open-Source Competition
NVIDIA's move comes as Meta Platforms Inc.
The two companies now face competition not only from proprietary models developed by OpenAI and Anthropic but also from open offerings from Chinese AI developers including Moonshot AI, DeepSeek and Alibaba, CNBC reported on Wednesday.
Earnings And Analyst Outlook
NVIDIA is scheduled to report earnings Aug. 26. Analysts expect earnings of $2.07 per share, up from $1.04 a year earlier. Revenue is expected to reach $91.82 billion, compared with $46.74 billion in the year-ago period.
The stock trades at a price-to-earnings multiple of about 34.5. NVIDIA carries a Buy consensus rating with an average price forecast of $325.74. Recent analyst moves include:
Wells Fargo maintained an Overweight rating with a $315 price forecast on Aug. 11. KeyBanc raised its price forecast to $330 while maintaining an Overweight rating on July 14. China Renaissance initiated coverage with a Buy rating and $319 price forecast on June 5.
NVIDIA Benzinga Edge Rankings
NVIDIA scores strongly on Growth and Quality in the Benzinga Edge Rankings, but its valuation remains a weak spot.
Its Growth score stands at 99.19, while Quality is 97.83. Momentum is Neutral at 62.7. However, its Value score is just 6.01, reflecting the stock's premium valuation.
The rankings point to a company backed by strong growth and business quality. However, the low Value score could put more pressure on NVIDIA to deliver strong earnings and guidance.
Top ETF Exposure
The Franklin Focused Dynamic Growth ETF
NVIDIA's large weighting means sizable fund inflows or outflows could translate into corresponding buying or selling of its shares.
NVIDIA Price Action
NVDA Stock Price Activity: NVIDIA shares were up 0.16% at $225.67 during premarket trading on Friday, according to Benzinga Pro data.
