Amid an ongoing rally for NVDA stock and demand for H200 chips, Nvidia has unveiled a new family of open-source AI models. The AI powerhouse says the new offering will be faster, cheaper, and smarter than its previous offerings. US President Donald Trump allowed Nvidia to sell its high-end H200 AI chip to the Chinese market last week. This sparked an NVDA rally that has continued into this week, especially after the latest AI model announcement.
Demand for the new H200 AI chip is so strong from China that the GPU maker is evaluating its production capabilities. The GPU maker is leaning towards adding new production units to cater to the demand. Only a limited number of H200 chips are currently in production, as they are allowed to be sold to “approved customers” only. Hence, Nvidia on Monday revealed the third generation of its “Nemotron” large-language models aimed at writing, coding, and other tasks.
Per Nvidia’s announcement, the smallest of the models, called Nemotron 3 Nano, was being released on Monday, with two other, larger versions coming in the first half of 2026. Kari Briski, vice president of generative AI software for enterprise at Nvidia, said the company aimed to provide a “model that people can depend on” and was also openly releasing its training data and other tools so that government and business users could test it for security and customize it. “This is why we’re treating it like a library,” Briski told Reuters in an interview. “This is why we’re committed to it from a software engineering perspective.”
Nvidia (NVDA) is up just over 1% at press time. NVDA is recovering from recent losses, with analysts pointing to a strong order pipeline and positive demand trends in the AI market. The stock has several price targets well above the current market price. Analysts generally agree on Nvidia’s potential growth, with most price targets above the current market price of $180.93. Bernstein and Cantor Fitzgerald are more optimistic with higher targets. Cantor’s $300 price target is the highest.