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
Yesterday, 10:42 AM
- While Tesla Motors (NASDAQ:TSLA) may have grabbed some headlines this week for its ambitious goals with autonomous driving (SAE level 5), the technology is being widely discussed across industries as a potential future reality.
- At a real estate conference in New York this week, a panel member called autonomous vehicles the biggest tech news concerning real estate in the last ten years. Some see a future reversal of urbanization trends in a development that could have significant investment implications.
- City planners and architects are already thinking of next-gen design. A paper titled "Beyond Google's Cute Car" (.pdf version) is a good example of how cities are being reimagined.
- Then there's this from the man who designed the 2015 Ford Mustang. "The next 10 years in this business is going to be the biggest change and challenge since the turn of the last century when cars took over for horses," said Ford design chief Moray Callum. Ford (NYSE:F) aims to have a high-volume, fully autonomous SAE level 4-capable vehicle in commercial operation in 2021.
- Self-driving car development is a topic of discussion on FedEx (NYSE:FDX), UPS (NYSE:UPS), Lyft (Private:LYFT), Uber (Private:UBER), Hertz Global (NYSE:HTZ), Google (GOOGL, GOOG), Avis Budget (NASDAQ:CAR), Domino's Pizza (NYSE:DPZ) and Nvidia (NASDAQ:NVDA). Earnings season is just heating up, but a host of companies -- including OTCPK:TMOAF, OTCPK:DDAIF, OTCPK:VOLVY, MXIM, CPRT, WBC, GNTX and XLNX -- have already talked up the trend on their conference calls. GM reports earnings this week and will update on any self-driving Chevy Bolt plans.
- Looking ahead, insurance companies, chipmakers, truckers and cybersecurity firms (NYSEARCA:HACK) will be firmly in the self-driving conversation.
- So who has a profitable trade idea off of the evolution of cars?
Thu, Oct. 20, 12:18 PM
- Earlier: Tesla raises stakes in the self-driving car push
- With Nvidia (NVDA +0.9%) supply involved in Tesla's self-driving program, analyst Vijay Rakesh notes that although pricing will be telling as to overall potential impact, the development nonetheless trends positively.
- Maintains $66 target (current price $67.08).
- Also today: NVIDIA Technology Powers New Home Gaming System, Nintendo Switch
Thu, Oct. 20, 8:28 AM
- Shares of Tesla Motors (NASDAQ:TSLA) are lower in early trading after the company announced it is loading all new cars with self-driving hardware.
- Elon Musk told reporters last night that he envisions that by the end of 2017 a Tesla vehicle will be able to drive from Los Angeles to New York without the driver touching the wheel. He also said the software system will be built by Tesla and run off of Nvidia (NASDAQ:NVDA) chips.
- Tesla's timetable is aggressive in relation to the stated plans of some rivals. Earlier this year, Ford (NYSE:F) said it aims to bring a high-volume, fully autonomous vehicle to the ride sharing industry by 2021, while Nissan has a target of 2020 for "commercially viable" autonomous models. General Motors (NYSE:GM) already has a pre-production Bolt EV out in the wild, but hasn't set a specific timetable for a fully autonomous version.
- Google (GOOG, GOOGL) is the company that has posted the most information about the challenges of the self-driving car initiative. A scan of Google's monthly reports is not a bad way to catch up on the burgeoning technology.
- Previously: Tesla announces all vehicles to be loaded with self-driving hardware (Oct. 19)
- TSLA -1.74% premarket to $200.01.
Fri, Oct. 14, 4:47 AM
- Tech giants including AMD, Dell/EMC, Google (GOOG, GOOGL), HPE, IBM, Mellanox (NASDAQ:MLNX), Micron (NASDAQ:MU), Nvidia (NASDAQ:NVDA) and Xilinx (NASDAQ:XLNX) have linked up to give Intel (NASDAQ:INTC) a good kick in the datacenters.
- The group has come up with an open specification, dubbed OpenCAPI, that can boost server performance by up to 10x.
- Effectively they are moving away from PCIe, the current industry standard, to something that is both more open and vastly more powerful.
Mon, Oct. 10, 3:34 PM
- Tesla Motors (TSLA +2.4%) plans to partner with Nvidia (NVDA +0.3%) on an end-to-end computer vision system, sources tell Electrek.
- The new Tesla Vision program will use Nvidia's parallel computing platform to help control vehicles by taking raw data from camera sensors and running it through an image processing system.
- Tesla Vision is likely to use deep neural network to become more efficient and safer over time.
- The Vision & Robotics Labs at Princeton University has some useful information on the deep learning concept which could be critical to the future of autonomous driving.
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