Research archive for NVDA

The semiconductor industry is naturally cyclical. It has been that way since computing and chips became mainstream items. They are complex to manufacture with long lead times in developing fabrication plants, so managing the inventory can be tough. We have 522 clients that own Nvidia, the leading semiconductor chip maker on the planet. We need to understand these cycles in order to manage expectations.

The technological advancements we enjoy today are the fruits of the hard work done by generations before us. As Sir Isaac Newton said, "If I have seen further it is by standing on the shoulders of giants." The great thing about technological progress is that it's exponential.

High-end chipmaker Nvidia had very good quarterly numbers out last week, with revenue up 46% since last year and profits up by 55% to a record high.

Here's a fun article in the Wall Street Journal about Nvidia, written by Dan Gallagher. The headline is Nvidia's Trillion Dollar Dreams.

I'm continuing my theme from yesterday about companies struggling to balance production capacity with the demand for their product. In good times they ramp up capacity as quickly as possible, incurring significant costs, but when demand drops, they are stuck with too many expensive employees and equipment.

Last week, Nvidia reported its fourth-quarter earnings that beat analysts' expectations and provided a strong outlook for this quarter thanks to massive demand. The chipmakers' revenues came in at $7.64 billion, up 53% year-on-year as Data Center sales rose by 71% and its core gaming business (50% of sales) showed no sign of slowing down.

On Wednesday night, Nvidia released their third-quarter numbers. The wait ahead of results from a stock that has been on a hot streak is always anxiety-inducing. Will the reported numbers match sky-high analyst expectations? So far this year, Nvidia shares are up 162%. It's touted as the next company to reach $1 trillion in market capitalisation (it's currently at $730 billion).

I was supposed to report to you on Nvidia's second-quarter results last month. Michael allocates each of us a list of companies to comment on each earnings season, and I dragged my heels, until now.

Here is some exciting news. One of our core holdings, Nvidia, announced yesterday that they will start making high-end server microprocessors. The new chips are named Grace after a pioneering computer scientist called Grace Hopper, and will be available at the beginning of 2023.

Nvidia reported results for the the last quarter of their financial year, and said that they were unable to meet demand for their products. That's a good problem to have, I suppose. That is what Nvidia experienced in the last quarter of their financial year. Results on Wednesday showed a whopping 61% growth in revenue thanks to a huge surge in gaming demand.

I have been very excited about Nvidia's potential when it comes to data centre infrastructure. Their GPU (graphics processing units) chips are really useful at accelerating heavy workloads often required in data centre processing. I have watched companies like Amazon, Microsoft and Google firing on all cylinders with their cloud businesses so it just made sense that this would knock on to Nvidia's GPU chips.

Nvidia is the market leader in artificial intelligence chips, and it reported third-quarter numbers on Thursday that blew past the street's expectations.

As has long been rumoured and now confirmed after GPU chipmaker Nvidia announced last night that they would pay $40 billion for CPU maker ARM. If the deal goes through, this will be the semiconductor industry's largest-ever deal. Nvidia will pay $23 billion in stock, $12 billion in cash, and then an additional $5 billion if ARM meets certain targets.

The easiest topic in the book to write about is Nvidia's fancy new GPU chips. For the uninitiated, GPU stands for graphics processing unit. It's time for the latest product update, and here you go!

On Wednesday evening after the market closed, Nvidia reported their latest numbers. The company beat both top-line and bottom-line expectations. They reported revenue of $3.9 billion, up 50% and Net Income of $1.3 billion, up 79%. Thanks to Nvidia's push into data centres through its purchase of Mellanox and Cumulus Networks, data centre revenue was up 167% for the year.