Chipmaker Nvidia (NVDA) has acquired Toronto-based AI startup CentML, according to The Logic, which is a major win for the startup and its investors. Interestingly, LinkedIn profiles show that CentML CEO Gennady Pekhimenko has taken on a senior director role for AI software at Nvidia, while the startup’s CTO and COO also joined in managerial positions. In total, at least 15 engineers and two interns from CentML have joined Nvidia this month, the report added.
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It is worth noting that CentML, founded in 2022, focused on helping companies run AI systems more efficiently by optimizing how models use hardware resources. The startup had raised about $30.9 million in venture capital, including a $27 million seed round that Nvidia participated in last year. CentML was also part of Nvidia’s accelerator program and had already been collaborating with the tech giant before the acquisition. As a result of the move, the company will stop offering services by July 17, according to a message posted in CentML’s Slack channel and on X.
Unfortunately, not all CentML employees are making the move to Nvidia, as some roles were cut due to an “organizational restructuring.” This included CentML dissolving its federal incorporation and re-registering under British Columbia law in early June. Meanwhile, Nvidia continues its upward momentum, with shares gaining nearly 17% year-to-date and rising again on Friday. With a market cap of about $3.78 trillion, analysts at Wedbush believe that Nvidia could hit $4 trillion this year and possibly reach $5 trillion within the next 18 months as the AI boom accelerates.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 35 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $175.28 per share implies 11.6% upside potential.
