Editing NVIDIA Corporation
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{{Infobox company|name=NVIDIA Corp|logo= | {{Infobox company|name=NVIDIA Corp|logo=|logo_size="size"|image=-image of factory-|image_caption=-caption-|traded_as={{Unbulleted list | ||
| {{NASDAQ|NVDA}} | | {{NASDAQ|NVDA}} | ||
| [[Nasdaq-100]] component | | [[Nasdaq-100]] component | ||
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*IO Acceleration | *IO Acceleration | ||
*Networking | *Networking | ||
*Virtual GPU|revenue=US$26.974 billion (2023)|operating_income=US$4.224 billion (2023)|net_income=US$4.368 billion (2023)|assets=US$41.18 billion (2023)|equity=US$22.10 billion (2023)|owner=Jensen Huang|num_employees=26,196 (2023)|website=https://www.nvidia.com/|footnotes= | *Virtual GPU|revenue=US$26.974 billion (2023)|operating_income=US$4.224 billion (2023)|net_income=US$4.368 billion (2023)|assets=US$41.18 billion (2023)|equity=US$22.10 billion (2023)|owner=Jensen Huang|num_employees=26,196 (2023)|website=https://www.nvidia.com/|footnotes='footnotes'|type=Public}} | ||
NVIDIA Corporation provides graphics, and compute and networking solutions in the United States, Taiwan, China, and internationally. The company's Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building 3D designs and virtual worlds. Its Compute & Networking segment provides Data Center platforms and systems for AI, HPC, and accelerated computing; Mellanox networking and interconnect solutions; automotive AI Cockpit, autonomous driving development agreements, and autonomous vehicle solutions; cryptocurrency mining processors; Jetson for robotics and other embedded platforms; and NVIDIA AI Enterprise and other software. The company's products are used in gaming, professional visualization, datacenter, and automotive markets. NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, independent software vendors, Internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants. It has a strategic collaboration with Kroger Co. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California. | == Summary == | ||
NVIDIA Corporation provides graphics, and compute and networking solutions in the United States, Taiwan, China, and internationally. The company's Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and [[Omniverse]] software for building 3D designs and virtual worlds. Its Compute & Networking segment provides Data Center platforms and systems for AI, HPC, and accelerated computing; Mellanox networking and interconnect solutions; automotive AI Cockpit, autonomous driving development agreements, and autonomous vehicle solutions; cryptocurrency mining processors; Jetson for robotics and other embedded platforms; and NVIDIA AI Enterprise and other software. The company's products are used in gaming, professional visualization, datacenter, and automotive markets. NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, independent software vendors, Internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants. It has a strategic collaboration with Kroger Co. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California. | |||
== <big>About the company</big> == | == <big>About the company</big> == | ||
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== Industry Overview == | == Industry Overview == | ||
== Macroeconomic Analysis == | == Macroeconomic Analysis == | ||
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Numerous potential recession signals are evident which need to be cautiously considered. These include the worst inverted US treasury yield curve since 1981 stagflation and oil crisis<ref>https://fred.stlouisfed.org/series/T10Y2Y</ref>, two consecutive negative quarterly growth on US Gross Domestic Income (GDI)<ref>https://mishtalk.com/economics/gross-domestic-income-gdi-suggests-the-us-is-in-recession-right-now/</ref>, the debt crisis (explained below), commercial real estate crisis, and many more. Although the labour market remains tighter than expected with resilient economic strength, deteriorating economy will likely to negatively impact the perfomance of NVIDIA based on historical performance of semiconductor companies. | Numerous potential recession signals are evident which need to be cautiously considered. These include the worst inverted US treasury yield curve since 1981 stagflation and oil crisis<ref>https://fred.stlouisfed.org/series/T10Y2Y</ref>, two consecutive negative quarterly growth on US Gross Domestic Income (GDI)<ref>https://mishtalk.com/economics/gross-domestic-income-gdi-suggests-the-us-is-in-recession-right-now/</ref>, the debt crisis (explained below), commercial real estate crisis, and many more. Although the labour market remains tighter than expected with resilient economic strength, deteriorating economy will likely to negatively impact the perfomance of NVIDIA based on historical performance of semiconductor companies. | ||
=== Credit Ratings === | === Credit Ratings === | ||
Credit ratings of the United States is a major catalyst for market | Credit ratings of the United States is a major catalyst for market activites. On 1st of August, Fitch downgraded the credit rating of the United States from the highest rating of AAA, to AA+. Fiscal deterioration and growing government deficit burden were the reasons behind this downgrade.<ref>https://www.bbc.com/news/business-66379366</ref> Previously, the credit rating downgrade of the US only occured once in 2011, following the aftermath of 2008 Financial Crisis and the Federal Reserve's attempt to revive the economy with vast amount of quantitative easing and increased balance sheet. | ||
This downgrade is significant as investors began to question the economic strength of the US. With high macroeconomic sensitivity, the SOX index plummeted by 6% after the announcement. | This downgrade is significant as investors began to question the economic strength of the US. With high macroeconomic sensitivity, the SOX index plummeted by 6% after the announcement. | ||
=== Debt Crisis === | === Debt Crisis === | ||
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The long standing rivalry between AMD and Nvidia is the primary driving force for GPU innovation in the gaming GPU market space. | The long standing rivalry between AMD and Nvidia is the primary driving force for GPU innovation in the gaming GPU market space. | ||
AMD | AMD boasts a revenue of 5.35 billion USD last quarter with yearly revenues of around 20 billion USD with around 25% of AMD's revenue coming from GPU sales. | ||
==== Moore Threads ==== | ==== Moore Threads ==== | ||
Moore Threads is a Chinese technology company | Moore Threads is a Chinese technology company specializing in graphics processing unit (GPU) design, established in October 2020 by, Zhang Jianzhong (张建中), the former global vice-president of Nvidia and general manager of Nvidia China. The company claims to be the first Chinese company to introduce a domestic, "fully-featured" GPU solution. Whilst Moore threads seems to still be in the start up stage of development, the company has a large market to sell to and its 1st line of GPUs was shown to be promising by reviews. Additionally, this firm will be able to exploit the deterioration of US-China trade relations because as of 2023 no established GPU manufacturers are based in China. As a result, the trade embargoes placed by the US government on US chip manufacturers selling to China has a left a shortfall of supply and in an market with a high demand for GPUs. Therefore, it will only be a matter of time before a Chinese GPU manufacturer rises. | ||
Although the firm is currently still in its start-up phase and does not have published financials, it has raised over 531 million USD in funding from private investors including institutions such as Tencent and ByteDance (creator of Tiktok). | Although the firm is currently still in its start-up phase and does not have published financials, it has raised over 531 million USD in funding from private investors including institutions such as Tencent and ByteDance (creator of Tiktok). | ||
'''Innosilicon''' | '''Innosilicon''' | ||
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'''Intel''' | '''Intel''' | ||
Like AMD, Intel is better known for its CPUs, but its graphics cards have also gained popularity in | Like AMD, Intel is better known for its CPUs, but its graphics cards have also gained popularity in lower end performance requirements. Intel is known for integrated HD/UHD GPUs embedded with the CPUs on a single chip. Intel’s graphics have not been the go-to option for gaming in the past, but things have changed after the release of Intel Xe. This recent release of Intel graphics have finally been recognised as somewhat gaming ready by reviews. Therefore, whilst it is not a direct competitor to Nvidia, it may compete with Nvidia in the integrated CPU-GPU markets. | ||
But the CPU frontrunner is getting more ambitious as it is set to release its own discrete GPUs (the ARC series). | |||
It will take some time before Intel can get a foothold in the gaming and high-computing GPU market, but joining in the competition could prove vexing for Nvidia down the road. | It will take some time before Intel can get a foothold in the gaming and high-computing GPU market, but joining in the competition could prove vexing for Nvidia down the road. | ||
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It seems that the two chips are just a start for Apple’s venture in gaming GPU. Recently, the company released M1 Ultra, which has massive improvements over the previous chips and is available in the new Mac Studio. As Apple claims, M1 Ultra has two M1 chips with 64 GPU cores, “faster performance than even the highest-end PC GPU available while using 200 fewer watts of power”. This claim compares M1 Ultra with Nvidia’s RTX 3090, the most powerful GPU before the release of RTX 3090 Ti. | It seems that the two chips are just a start for Apple’s venture in gaming GPU. Recently, the company released M1 Ultra, which has massive improvements over the previous chips and is available in the new Mac Studio. As Apple claims, M1 Ultra has two M1 chips with 64 GPU cores, “faster performance than even the highest-end PC GPU available while using 200 fewer watts of power”. This claim compares M1 Ultra with Nvidia’s RTX 3090, the most powerful GPU before the release of RTX 3090 Ti. | ||
However, currently Apple's GPUs | However, currently Apple's GPUs appears to integrated into its own Apple product therefore, for now , apple will not be a direct competitor to nvidia. | ||
==== Qualcomm ==== | |||
== '''<u>Financials</u>''' == | == '''<u>Financials</u>''' == | ||
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Furthermore, the introduction of new regulations on export restrictions could present a notable danger to Nvidia and its shareholders. These regulations might necessitate licenses for chips related to artificial intelligence (AI), resulting in negative effects on Nvidia's financial performance as outlined in its official 10-K submission. Should the U.S. government impose export controls on AI chips, it could impede the growth of the AI sector, potentially leading to decreased risk-taking across the entire U.S. technology landscape. Consequently, investment funds might decrease their exposure and engage in profit-taking, ultimately impacting both Nvidia and the broader technology sector. | Furthermore, the introduction of new regulations on export restrictions could present a notable danger to Nvidia and its shareholders. These regulations might necessitate licenses for chips related to artificial intelligence (AI), resulting in negative effects on Nvidia's financial performance as outlined in its official 10-K submission. Should the U.S. government impose export controls on AI chips, it could impede the growth of the AI sector, potentially leading to decreased risk-taking across the entire U.S. technology landscape. Consequently, investment funds might decrease their exposure and engage in profit-taking, ultimately impacting both Nvidia and the broader technology sector. | ||
== '''<u>Valuations</u>''' == | == '''<u>Valuations</u>''' == | ||
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The returns on Equity, Assets and Investment for Nvidia are lower than all of it's competitors, indicating that the company is not as efficient at generating profits as others in the same industry. | The returns on Equity, Assets and Investment for Nvidia are lower than all of it's competitors, indicating that the company is not as efficient at generating profits as others in the same industry. | ||
The relative valuation indicates that Nvidia is overpriced, does not have brilliant income prospects, and is not as efficient at generating profits as some of it's industry competitors, such as Qualcomm, Broadcom and Apple. This could mean that in the future, share price for Nvidia is likely to fall or remain stagnant. However, investor sentiment and the volatility of the stock means that we may not see a translation of the value of the stock to the behaviour of it's share price. | The relative valuation indicates that Nvidia is overpriced, does not have brilliant income prospects, and is not as efficient at generating profits as some of it's industry competitors, such as Qualcomm, Broadcom and Apple. This could mean that in the future, share price for Nvidia is likely to fall or remain stagnant. However, investor sentiment and the volatility of the stock means that we may not see a translation of the value of the stock to the behaviour of it's share price.<references />__INDEX__ | ||
<references />__INDEX__ |