Nvidia: Weighing The Up And Down Sides
Esekla • 92 Comments
Esekla • 92 Comments
Nvidia: Best In Class Among Semiconductors In 2016
Alex Cho • 16 Comments
Alex Cho • 16 Comments
Tue, Sep. 13, 8:58 AM
- Saying it would power Baidu's (NASDAQ:BIDU) mapping and autonomous vehicle technology, Nvidia (NASDAQ:NVDA) has revealed a smaller and more efficient artificial intelligence computer for self-driving cars, called Drive PX 2.
- Earlier this month, the two companies announced a partnership to develop a full cloud-to-vehicle autonomous car architecture using their expertise in AI.
Wed, Sep. 7, 11:37 AM
- Despite a jarring reaction to concurrent common stock and senior note offerings announced yesterday, Advanced Micro Devices (AMD -6%) continues to outpace all major competitors when it comes to share price growth over the last 12 months.
- At present levels, AMD is up 267% since this point last September while Nvidia (NVDA -1.3%), second in growth over the same period, is up around 175%.
- Though short-term prospects are realizing a negative impact on the developments, the company appears to be increasingly prioritizing a more long-term strategic focus.
Thu, Sep. 1, 7:46 AM
- Speaking at the annual Baidu World conference, Nvidia (NASDAQ:NVDA) CEO Jen-Hsun Huang announced he would work with Baidu (NASDAQ:BIDU) to build a self-driving car platform whose algorithm-based operating system would include cloud-based, high-definition maps and the ability to perceive and react to different road environments.
- "No company in the world today has demonstrated the ability to integrate this system and deploy it at scale for millions of cars to drive by themselves," he said. "We are going to bring together our technical capabilities and expertise in AI" to make this happen.
Tue, Aug. 23, 12:51 PM
- Nvidia (NVDA +0.7%) showed off the technology at the Hot Chips symposium in Cupertino, declaring the processor "ideally suited for automotive applications like self-driving cars and digital cockpits." The company noted Parker earlier this year when introducing NVIDIA DRIVE PX2, a platform Nvidia claims can deliver 24 trillion deep-learning operations per second.
- Parker is built on Pascal GPU and Denver CPU architectures, can deliver up to 1.5 teraflops of performance and is capable of scaling algorithms continuously. Additionally features hardware-enabled virtualization and support for encoding and decoding 4K resolution video at up to 60 frames per second.
- The company plans to release further details as it continues to "accelerate toward making the self-driving car a reality."
Tue, Aug. 23, 7:31 AM
Fri, Aug. 19, 11:43 AM
- The chip sector is hot but no name is hotter than Advanced Micro Devices (AMD +10.9%). The company has been gradually rising since last August and has really hit its stride since returning to Y/Y revenue growth for the first time since 2014 in Q2.
- The only company remotely in the ballpark of this type of growth is Nvidia (NVDA +0.4%) with a now 170% increase over the last year.
- Comparably, Intel Corporation (INTC +0.5%) is up slightly over 23%, Micron Technology (MU +3.7%) around 2%, Applied Materials (AMAT +6.7%) nearly 80%, Analog Devices (ADI +0.4%) around 10%, ARM Holdings (ARMH -0.8%) around 56%, Linear Technology (LLTC +0.1%) around 46%, NXP Semiconductors (NXPI +1.2%) around 2%, Marvell Technology (MRVL +3.9%) slightly over 1%, Qualcomm (QCOM -0.4%) around 2.5%, Broadcom (AVGO +0.5%) around 26% and Texas Instruments (TXN +0.3%) around 43% for the same period.
- Advanced Micro Devices shares continues to increase following this week's operational-reveal of the company's highly anticipated Zen-core processors.
Wed, Aug. 17, 11:12 AM
- Intel (INTC -0.4%) published infographics used at a high-speed computing conference and Nvidia (NVDA -1.6%) is taking issue with the accuracy of some of the declarations. The dispute relates to Intel's stated capabilities in the field of deep learning.
- Nvidia was primarily provoked by Intel's claims its Xeon Phi processor is 2.3x faster than GPUs in training, that it provides 38% better scaling across nodes and registers scaling to 128 nodes while GPUs do not. Nvidia asserts Intel used outdated software versions and hardware data in its calculations and noted: "So it’s understandable that newcomers to the field may not be aware of all the developments that have been taking place in both hardware and software."
- The blog post concludes: "It’s great that Intel is now working on deep learning. This is the most important computing revolution with the era of AI upon us and deep learning is too big to ignore. But they should get their facts straight."
Fri, Aug. 12, 11:18 AM
- In addition to Morgan Stanley and Deutsche Bank memos out today restating positions, RBC Capital issues an Outperform upgrade on Nvidia (NVDA +4.4%).
- Analyst Mitch Steves notes: "We think the NVIDIA story has materially changed to a structural long driven by 1) deep learning, 2) automotive and 3) virtual reality growth. While expectations were originally slated for ~8-12% revenue growth, we think 20-30% is now on the table combined with margin tailwinds from improving yield on production. Data Center out-performance was the primary driver to a thesis changing moment (potential for q/q growth through CY16) given our previous stance for a single leg of growth (Virtual Reality). Finally, the Automotive segment continues to act as a call option on the stock if the Drive PX platform sees robust growth. Net Net: we are moving to an Outperform rating and move our price target to $72."
- Nvidia is currently trading around $62.
Fri, Aug. 12, 9:58 AM
- Nvidia (NVDA +3%) registered impressive Q2 numbers yesterday and has now climbed to a 165% 1-year basis increase.
- Deutsche Bank analyst Ross Seymore maintains a Hold rating and $51 price target ($63.05 current price) on the company. He cites Gaming segment growth as a highlight and sees it continuing to grow 25% sequentially. He additionally counts Datacenter among growth segments with similar 25% sequential runway. While noting execution and performance, he believes this was already reflected in the existing high valuation. He projects Q3 EPS of $0.40-$0.53, FY 2017 EPS of $1.51-$1.80 and FY 2018 EPS of $1.40-$1.80.
- Morgan Stanley analyst Joseph Moore also attributed strong Gaming and Datacenter growth to the results. He notes: "We see continued strength in data center as the most exciting aspect of the story, with some deceleration in gaming growth beyond October; growth warrants premium valuation." Projects 27% sequential Gaming growth, 32% Datacenter growth and single-digit Automotive and Workstation growth. The firm raises its price target to $64 up from $55, maintains an Equal weight rating and sees near-term upside.
Thu, Aug. 11, 4:58 PM
- Nvidia (NASDAQ:NVDA) realizes 24% Y/Y and 9% sequential ($1.43B) revenue growth.
- Operating expenses increased 6% while operating income, net income and diluted EPS grew 65%, 65% and 56% on a Y/Y basis, respectively.
- GPU Business revenue increased 25% and Tegra Processor Business grew 30% over the year-ago period.
- Gaming, Professional Visualization, Datacenter and Automotive platforms revenue increased 18%, 22%, 110% and 68% Y/Y, respectively. OEM and IP revenue declined 6% Y/Y.
- Introduced first four constituents of Pascal-based gaming GPUs and revealed Quadro P6000 workstation GPU.
- Projects Q3 revenue of $1.68B (+/- 2%), gross margins of 57.8%-58% (+/- 50 basis points), operating expenses of $465M, tax rate of 21% (+/- 1%) and capital expenditures of $35M-$45M.
- Share repurchases of $509M in H1 2017, $124M of cash dividends. Next dividend of $0.115 per share payable on September 16 to shareholders of record on August 25.
- CEO Jen-Hsun Huang: "Strong demand for our new Pascal-generation GPUs and surging interest in deep learning drove record results. Our strategy to focus on creating the future where graphics, computer vision and artificial intelligence converge is fueling growth across our specialized platforms -- Gaming, Pro Visualization, Datacenter and Automotive. We are more excited than ever about the impact of deep learning and AI, which will touch every industry and market. We have made significant investments over the past five years to evolve our entire GPU computing stack for deep learning. Now, we are well positioned to partner with researchers and developers all over the world to democratize this powerful technology and invent its future."
- Shares are up nearly 3% in extended trading, more than 65% on a 3-month basis and over 150% on a 1-year basis.
- Conference call
- Quarterly revenue trend
- CFO commentary
- Press release
Thu, Aug. 11, 4:20 PM
Wed, Aug. 10, 5:35 PM
Mon, Aug. 8, 10:16 AM
- Jefferies analyst Mark Lipacis issues a $69 target up from $56 (current price $58.14), maintaining a Buy rating.
- Cites product momentum, upside potential and stronger-than-anticipated signaled PC-market strength.
- Lipacis expects Nvidia's (NVDA +0.1%) upcoming earnings (August 11) to be largely on target, though believes Q3 and Q4 consensus estimates of 7% and 2% respective sequential revenue growth are too restrained. He attributes a more confident outlook to Nvidia's new 16nm Pascal GPU and increased attention to high-margin VR solutions.
- He notes: "Pascal marks NVDA's first mfct-node change in 4 years…We expect Pascal will translate to increased visibility if not upside surprises in 2H16/1H17."
Tue, Jul. 26, 9:39 AM
- Nvidia (NVDA +1.5%) labels its Quadro P6000 the "world's fastest GPU", based on the company's Pascal graphics structure.
- Simulations, animations, virtual reality and complex modeling cited as use cases.
- 2x faster than previous iteration.
- VRWorks' 360, software capable of creating 360 video out of multiple 4K videos, also released.
- The upgrades and new software are aimed at artists, animators and designers operating with large datasets, enabling these professionals to work quicker and with increased flexibility.
- AMD (AMD +3.4%) similarly released its new Radeon Pro WX lineup with creative professionals in mind.
- These graphics cards are based on the company's Polaris architecture.
- Real-time game engine demands, virtual reality demands and increasing image processing demands were noted by AMD's Raja Koduri (Senior Vice President and Chief Architect, Radeon Technologies Group) as catalysts in the space.
- Koduri also highlights the ability to display 8K video processing at a 90 Hz frequency.
- He considers a balance between open source software and improved hardware important to the division's AR and VR strategies.
- Both Nvidia's and AMD's new workstation chips are believed to be released soon.
- These professional workstation chip upgrades come amid recent surges in the semiconductor arena with both companies opening up in early session trading.
Mon, Jul. 25, 3:30 PM
- Advanced Micro Devices (AMD +16.8%) [current volume 99.07M vs. 29.38M average] posted an impressive quarter last week and its share price continues to climb.
- Solitron Devices (OTCQB:SODI +11.7%) [current volume 98,631 vs. 2,656 average] and Micron Technology [current volume 43.08M vs. 31.60M average] are rising as well with Micron adopting a shareholder rights plan amid takeover speculation and Solitron appointing an investor long at odds with its board as CEO last Friday.
- With Qualcomm (QCOM -0.9%) surging last week, Nvidia (NVDA +1.9%) shares up 23%+ since late June, AMD's positive quarter and apparent turnaround, and with the exception of Intel (INTC -0.1%) and some others, the semiconductor sector has found itself on a tear.
Mon, Jul. 18, 12:41 PM
- Like it or not the huge success of Pokémon Go is likely to unleash a huge pop in mobile games designed around augmented reality.
- There is already an online petition asking for a similar Harry Potter Go game to be designed and many more mainstream characters are sure to start showing up in games linked to the cameras on smartphones and tablets.
- Companies stocked with an arsenal of appealing characters that could be brought into augmented reality games include Disney (NYSE:DIS), Time Warner (NYSE:TWX), Mattel (NASDAQ:MAT), and Hasbro (NASDAQ:HAS). Movie studios (LGF, SNE, VIA, VIAB) could also benefit as AR games tied around plot lines from old movies are developed (The Godfather, Star Wars, Blade Runner, Hunger Games, etc.) and used to promote new features.
- Many retailers and restaurant chains have already been active in trying to latch on to the Pokémon Go buzz (see What's McDonald's doing inside the Pokémon code?), while GameStop (NYSE:GME) thinks it has an angle on the collectibles and accessories side. As the retail sector works out the science of in-game marketing opportunities, even more opportunities could arise.
- Technology firms with a stake in augmented reality include Google (GOOGL, GOOG) , Himax (NASDAQ:HIMX), Nvidia (NASDAQ:NVDA), and Intel (NASDAQ:INTC).
- Nintendo ADRs (OTCPK:NTDOY) are up 8.6% today and have doubled in value during the week following Pokémon Go's introduction.