U.S. semiconductor giant Nvidia (NVDA) is facing a patent infringement lawsuit which could see some of its products banned in 18 European countries. Nvidia stock was flat in early trading.
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Patent Complaint
ParTec AG, which specializes in the development and manufacture of supercomputers for high-performance computing and AI based on its modular high-performance computing (HPC) systems and quantum computers (QC), and its licensing agent BF exaQC, took the action today at the Unified Patent Court in Munich, Germany.
The case involves alleged infringement of a ParTec patent covering the arrangement and interaction of CPUs and GPUs in AI supercomputers, and seeks to block sales of Nvidia’s DGX products in 18 patent-protected European countries.
ParTec said it is also seeking damages and disclosure of past sales related to the accused products.
ParTec, along with BF exaQC AG, holds an extensive patent portfolio in the field of supercomputing and microprocessors. A core element of the patent portfolio is the dynamic Modular System Architecture (dMSA) developed and patented by ParTec.
European Supercomputers
Among other things, it can be used to intelligently assign microprocessors of different designs and capabilities, such as CPU and GPU, to each other, even during a calculation. ParTec’s dMSA is now used in many of Europe’s largest supercomputers and plays an important role in artificial intelligence supercomputers.
Bernhard Frohwitter, CEO of ParTec, stated: ”NVIDIA utilizes our patented dMSA technology, which is essential for the operation of a high-performance AI supercomputing infrastructure. The U.S. currently holds a near-monopoly in this area, which places European companies in a highly dependent position, threatening Europe’s standing as a high-tech location. We cannot accept our technology’s usage while our rights assertion blocks collaboration.”
As seen above, legal and regulatory risks are key for Nvidia stock and its investors.
Is NVDA a Good Stock to Buy Now?
On TipRanks, NVDA has a Strong Buy consensus based on 35 Buy, 3 Hold and 1 Sell ratings. Its highest price target is $250. NVDA stock’s consensus price target is $187.57, implying a 2.73% upside.
