Nvidia: Best In Class Among Semiconductors In 2016
Alex Cho • 16 Comments
Alex Cho • 16 Comments
Nvidia Is A $12 Stock Worth $18: A Sum Of The Parts Analysis
Adam Levine-Weinberg • 65 Comments
Adam Levine-Weinberg • 65 Comments
Mon, Jun. 13, 12:16 PM
- Upbeat on the potential of the company's data center/server GPU business following a talk with CEO Jen-Hsun Huang, Nomura's Romit Shah has upgraded Nvidia (NVDA +2.3%) to Buy, and upped his target by $20 to $55.
- Shah: "Mr. Huang was very enthusiastic about the prospects for the Datacenter business, as Hyperscale companies quickly adopt throughput computing in an effort to accelerate workload performance. Datacenter revenues grew 63% yoy last quarter due to broad adoption for Nvidia’s M40 product, a GPU accelerator. We believe that NVDA has an 80% share in the accelerator market, which makes up less than 1% of total datacenter spending."
- He adds engagement for Nvidia-powered autopilot solutions for cars (now above 80) will boost automotive revenue later this year. Shah's target is equal to a 4.5x EV/sales ratio.
- Nvidia soared last month after strong earnings/guidance that were fueled by surging Tesla server graphics card sales, as well as rising Tegra processor sales within the automotive infotainment market. Facebook, Microsoft, Alibaba, and other web/cloud giants are believed to be Tesla clients.
Fri, May 13, 12:45 PM
Fri, May 13, 10:21 AM
- Nvidia (NASDAQ:NVDA) has rocketed 11.5% after last night's solid earnings beat and strong revenue guidance for Q2.
- Analysts have responded with price target increases and a couple of upgrades. Roth Capital upgraded to Buy from Neutral, and boosted its price target to $40, from $34.50 (the stock is trading at $39.66 as of now).
- The Datacenter segment grew 63% (and 47% Q/Q), "largely driven by deep learning adoption by cloud operators (IBM, Facebook, Microsoft, Amazon, Alibaba, Baidu, and Twitter), indicating to us that NVDA has found its next big growth vector,” analyst Brian Alger says of the "massive potential" there.
- Brean reiterated a Hold but raised its fair value range to $35-$40. “The Company continues to execute well and has growth drivers/levers in Tegra and GPUs and more importantly, is expecting a resumption of growth from its Gaming business driven by its Pascal-based GeForce products in Jul-16Q,” says analyst Mike Burton.
- Meanwhile, Jefferies Group raised its price target to $45 from $42; Wedbush raised its target to $42 from $38; RBC Capital increased its target to $40 from $36.
- Now read Nvidia Drops Another Pascal Bomb On AMD »
Fri, May 13, 9:17 AM
Thu, May 12, 5:37 PM
Thu, May 12, 4:41 PM
- Nvidia (NASDAQ:NVDA) has gained 4.9% after hours following Q1's earnings beat featuring a view for Q2 above analyst consensus as well.
- Revenues grew by double digits with a $100M gain in Gaming, its biggest platform, and revenue grew in all platforms except one.
- For Q2, the company's forecasting $1.32B-$1.38B, significantly higher than consensus for $1.28B. It's expecting non-GAAP gross margin of 58%, non-GAAP opex of about $445M and capex of $30M-$40M.
- Revenue by platform: Gaming, $687M (up 17%); Professional Visualization, $189M (up 4%); Datacenter, $143M (up 63%); Automotive, $113M (up 47%); OEM and IP, $173M (down 21%). GPU business gained 15% and Tegra Processors grew 10%, to $160M (up 2% sequentially thanks to growth in Tegra Automotive).
- Conference call to come at 5 p.m. ET.
- Press Release
Thu, May 12, 4:22 PM
Thu, May 12, 1:49 PM
- AMD presents a risk to Nvidia (NVDA -2.1%) as it's made "substantial progress" and may have taken graphic chip share, says Wells Fargo's David Wong.
- "We believe that market share gains in graphics chips have been a contributor to Nvidia’s top line performance and stock price value over the last two years" -- a period where Nvidia stock has nearly doubled.
- But AMD's last quarterly report showed double-digit sequential growth in desktop discrete graphics units and gains in professional graphics, and guided for 15% sequential growth in the out quarter, while Nvidia's guidance midpoint implies a 10% sequential decline.
- A seasonal decline isn't a negative for Nvidia, Wong says, but "we think that Nvidia’s expectations and AMD’s graphics growth momentum suggest that AMD is beginning to regain graphics revenue share" and that Nvidia earnings this afternoon and Mercury Research's upcoming chip market update should confirm that.
- Wong has an Outperform rating on AMD (AMD -2.2%) and a price target of $4.00-$4.50 -- implying 12-26% upside. He's rating Nvidia Market Perform.
- Now read Nvidia And The Need For Speed »
Wed, Mar. 16, 7:35 PM
- Bloomberg reports Intel (NASDAQ:INTC) is in talks with AMD to license its smaller rival's GPU patents.
- The report comes with Intel's cross-licensing deal with Nvidia (NASDAQ:NVDA) due to expire in Q1 2017. Nvidia has been recording $66M/quarter in licensing revenue related to the Intel deal, which allows Intel to use Nvidia's IP in the GPUs integrated with its CPUs.
- AMD is up 6.1% after hours to $2.79. Nvidia is down 0.7% to $32.87.
Tue, Mar. 15, 2:12 PM
- AMD (AMD -8.6%) has followed up on yesterday morning's VR announcements by revealing (at a Game Developers Conference event) the Radeon Pro Duo, a high-end dual-GPU solution declared by the company to be "the world's most powerful platform for virtual reality."
- The Duo, previously expected to be called the Fury X2 - the first Fury GPUs launched last June - is expected to sport a $1,499 MSRP, and is aimed at both hardcore gamers and professionals (including VR content creators). Each of its GPUs sport 4096 stream processors and are paired with 4GB of High Bandwidth Memory delivering 512GB/s of memory bandwidth. Total performance is pegged at 16 TFLOPs.
- AMD also provided details about its Polaris 10 and 11 GPUs, which are due in mid-2016 and will rely on Samsung/Globalfoundries' 14nm FinFET manufacturing process - Polaris was first revealed at CES. The company reiterates its claim Polaris will deliver massive improvements in performance/watt.
- WCCFTech estimates a Polaris video card shown off in a demo consumes only 50W of power, making it twice as power-efficient as a card using Nvidia's (NVDA -1.3%) GTX 950 GPU (based on the 28nm Maxwell architecture). Nvidia plans to counter Polaris with GPUs based on its 16nm Pascal architecture; the company promises a 2x performance/watt increase over Maxwell, and support for up to 12TFLOPs of performance, 32GB of HBM and 1 TB/s of memory bandwdith.
- In 2017, AMD plans to launch GPUs based on Vega, an architecture supporting HBM2 memory (supports higher densities and more memory bandwidth). Vega will be followed in 2018 by Navi, an architecture said to support an unnamed next-gen memory type.
- AMD has fully given back yesterday's gains. The Nasdaq is down 0.5%.
Mon, Mar. 14, 2:42 PM
- AMD (AMD +8.1%) has unveiled XConnect, a solution that allows externally-housed graphics cards running on AMD GPUs to be paired with notebooks via Thunderbolt 3 connections (supports 40Gbps of bandwidth and 100W of power delivery via USB Type-C ports).
- XConnect is supported by Thunderbolt 3 developer/CPU archrival Intel, as well as gaming PC maker Razer. AMD, hungry to win back GPU share lost to Nvidia, declares the solution will allow thin-and-light notebooks to deliver the kind of gaming performance typically reserved for chunkier gaming notebooks. Razer has launched an enclosure (called Core) for graphics cards running on AMD's R9 300 GPUs that connects to an ultra-thin laptop (called the Blade Stealth). (Press Release)
- Separately, AMD has announced it currently powers 83% of all dedicated VR headsets (per Jon Peddie Research). With Nvidia (NASDAQ:NVDA) also interested in the VR space and the first commercial Oculus Rift model only due to ship later this month, AMD's share might look very different a year from now.
- AMD also notes it's partnering with Canada's Sulon Technologies to develop the Sulon Q, a high-performance VR headset that doesn't need to be attached to a PC. The steep performance demands of the Rift and other PC-connected VR headsets are expected to boost AMD and Nvidia's high-end GPU sales.
- Shares have rallied on a quiet day for stocks. Volume (26M shares) is soundly above a 3-month daily average of 14.1M.
Thu, Feb. 18, 9:22 AM
Wed, Feb. 17, 5:38 PM
Wed, Feb. 17, 4:51 PM
- In addition to soundly beating FQ4 estimates, Nvidia (NASDAQ:NVDA) is guiding for FQ1 revenue of $1.26B (+/- 2%), above a $1.23B consensus.
- Top-line performance: As was the case in FQ3, strong gaming GPU demand (in spite of a weak PC market) was a major tailwind: Total GPU revenue rose 10% Y/Y to $1.18B, with gaming GPU revenue rising 21%. Quadro (workstation GPU) revenue rose 7% to $203M, and Tesla/GRID (HPC server/cloud) GPU revenue rose 10% to $97M.
Tegra app processor revenue rose 40% to $157M, fueled by a 68% increase in automotive revenue to $93M (the result of both infotainment module Tegra sales and R&D contracts). The Intel deal once more produced licensing revenue of $66M.
- Financials: Non-GAAP gross margin was 57.2%, +70 bps Q/Q and +100 bps Y/Y, and above a guidance midpoint of 57%. FQ1 GM guidance is at 57.5% (+/- 50 bps). Operating expenses rose 6% Y/Y to $445M (compares with 12% revenue growth). 4.3M shares were repurchased through an accelerated buyback. Nvidia ended FQ4 with $5.04B in cash and $1.41B in convertible debt.
- NVDA +5.6% after hours to $29.20.
- Nvidia's FQ4 results, earnings release, CFO commentary (.pdf)
Wed, Feb. 17, 4:22 PM
Fri, Jan. 15, 12:35 PM
- On a day the Nasdaq is off 4.1%, companies with strong PC exposure are seeing even bigger losses after Intel (down 9.2%) beat Q4 estimates and provided healthy 2016 sales guidance, but also reported a slowdown in server CPU sales growth and offered cautious earnings call remarks about Chinese demand and macro trends.
- Intel's Client Computing Group (provides PC/mobile CPUs) only saw a 1% Y/Y revenue drop in Q4 in the face of weak PC demand. However, volumes were down 16%, with desktop, notebook, and tablet CPU volumes respectively falling 9%, 10%, and 33%. A 17% increase in ASPs minimized Intel's revenue drop. Earlier this week, IDC and Gartner respectively estimated PC shipments fell 10.6% and 8.3% Y/Y in Q4.
- The list of PC-related names seeing big losses includes Microsoft (MSFT -4.8%), Nvidia (NVDA -6.7%), AMD (AMD -8.1%), HP Inc. (HPQ -5.2%), Micron (MU -8.9%), Seagate (STX -6.4%), and Western Digital (WDC -6.4%). AMD reports on Jan. 19, Microsoft and Western on Jan. 28, and Seagate on Jan. 29.
- In other Microsoft news, the company has carried out price cuts of up to 17% for Azure cloud computing services, following new price cuts from Amazon, and is reportedly looking to acquire Indian mobile ad network owner InMobi. Google was rumored to be in buyout talks with InMobi last year.
- AMD, meanwhile, has begun shipping its Opteron A1100 (Seattle) ARM server CPU. Seattle, first announced in 2013, sports up to eight 64-bit ARM Cortex A-57 CPU cores, and enters a market also targeted by AppliedMicro, Cavium, and Qualcomm.
NVIDIA Corp. is a visual computing company, connecting people through computer graphics. It is engaged in creating graphics chips, which is used in personal computers. The company operates through two segments: Graphics Processing Unit (GPU) and Tegra Processor. The GPU segment includes sales of... More
Industry: Semiconductor - Specialized
Country: United States
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