Nvidia's (NVDA) GPU Technology Conference day 3 highlighted growing momentum in open-source AI models alongside discussions on how inferencing is driving revenues at scale, UBS Securities said in a Thursday note.
As a result, AI factories are increasingly defined by continuous software and systems optimization, the brokerage said.
Beyond compute hardware, networking topology and design, cooling, power and workload routing are becoming critical determinants of utilization and return on investment.
Nvidia and other panelists further highlighted the progress in open-source AI models and how their open nature may offer "additional peace of mind" to companies concerned about end-to-end control over the AI workflow, according to the research note.
UBS maintained its $245 price target on Nvidia, with a buy rating.
Shares of Nvidia were down 1.4% in Thursday trading.
Price: 177.96, Change: -2.44, Percent Change: -1.35
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