How Nvidia's Business Model is Future-Proofed
Michael Spencer
A.I. Writer, researcher and curator - full-time Newsletter publication manager.
Why I'm Bullish on Nvidia
Let's make no mistake, Nvidia Corp. is the world’s largest chipmaker by market value. It's also growing to be a leader of both AI chips, the Metaverse and it intersects with foundational technology.
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What do we mean by this?
No other company in the world intersects both the Metaverse and Autonomous driving like Nvidia. No other company intersects Artificial Intelligence, Gaming and Crypto like Nvidia. Do you see where I'm going with this?
Over the last year the stock is up 135%. The market cap is now at $731.5 Billion. The company is growing even faster and is the biggest digital transformation agent of the pandemic, even better than Microsoft.
Taiwanese-American Jen-Hsun Huang is now a legend and a futurist visionary. The company issued a bullish forecast for revenue in the current quarter ending in January. So how were the latest earnings?
The company is foundational because data centers and the software is where AI lives in the physical world. The company has made significant gains in data centers, where cloud providers and big enterprises are turning to the kind of graphics processors made by Nvidia for artificial intelligence applications.
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Nvidia is Poised to Guide AI into the Metaverse and Autonomous Vehicle Sector
People underestimate how well positioned Nvidia is to profit for the autonomous transportation revolution (way bigger than the EV pivot of cars). Nvidia intersects with many elements of the future of technology in an innovative way. It should peak as a company between 2025 and 2032. It was founded in 1993. Nvidia and Tesla are both FANGs now, but Tesla is a fake FANG, Nvidia is not.
So the biggest piece of info in the Earnings is this, so listen up: The company saw $2.9 billion in data center sales, up 55% from the year-ago quarter. For a company that size to grow sales that much is pretty rare. If China wants to catch up to America, they will have to clone Nvidia's business model, if they even can. It could take a decade for even China to pull off.
More customers are seeking out Nvidia’s chips for artificial intelligence applications like understanding human speech, wrote Nvidia CFO Colette Kress. Taiwanese-American leaders are some of the best tech leaders in Silicon Valley. That's not a coincidence, Lisa Su is likely the best female CEO in Silicon Valley. Taiwan Semiconductor as a company is a legend in its own right in the global-supply chain shortages for chips.
Nvidia knows how to diversify its business model. Nvidia, whose roots are in graphics chips for gaming systems, has pushed into processors that run servers -- the powerful machines used in cloud computing and corporate networks. They are now pushing into the future of autonomous transportation and other massive TAM sectors like the Metaverse.
I like to write op-eds that criticize big teach leaders that abuse their power, but Nvidia is a different kind of animal. Nvidia is agnostic and not monopolistic. There are a variety of competitive chip makers, especially now in AI chips. People don't understand how their sales to the auto industry will scale with autonomous transportation. It will be incredible.
If Intel is the old dog, Nvidia is the silver wolf of chip makers. Nvidia has averaged about 57 per cent revenue growth over the last eight quarters. That performance has helped push its market capitalization above US$730 billion, making it more than three times the size of Intel Corp., a company that has triple Nvidia’s annual revenue.
There are very few global tech companies that are as well diversified as Nvidia. Microsoft and Alibaba come to mind.
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Earnings per share rose 60% year-over-year and revenue was up 50% from a year ago. Wow!!
AI Entrepreneur| Data Scientist | Co-Founder
3yYes fully agree... a truly disruptive and transformative company with a visionary leader and a futuristic business model. Nvidia has provided a platform that is a paradise for innovators called "Nvidia inception for startups... two years ago I developed my first AI model on google cloud with 300$ free credits.... today we have reached one of the fastest inferences on earth ..-3-6 seconds on a single GPU architecture.. and Nvidia's Inception support is a really valuable asset for our startup. Recently, we got an offer by Nvidia to have a trial run on the world's fastest GPU / supercomputer DGX... that is like a dream come true for an early-stage startup like ours... In short, this whole startup ecosystem by Nvidia is giving birth to numerous opportunities for entrepreneurs that will help communities. In the long run, this will boost Nvidia's GPU adoption via real-life AI use cases, and we are excited about the future of AI and the partnership with Nvidia.
President at Futura Automation, LLC
3yNo matter how good is Nvidia's technology, it is not worth the price at $800B and a PE of 100. Meanwhile INTC languishes at a PE multiple of 9, even though it is the pre-eminent microprocessor manufacturer in the world. I will take the value play and wait for market sanity.
Helps manufacturers reduce costs and emissions with explainable white-box machine learning.
3yApplica is proud to be Nvidia's #intelligentdocumentprocessing partner because #deeplearning requires GPU servers.