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   Technology StocksNVIDIA Corporation (NVDA)


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From: Frank Sully2/19/2022 6:50:32 PM
   of 2485
 
Nvidia’s AI Innovation Should Push Stock Higher: Analysts

By Logan Moore

Original Feb. 14, 2022



Chip maker Nvidia has invested heavily in artificial intelligence.

DREAMSTIME

Nvidia has invested heavily in artificial intelligence—in cash and culture—and those expenditures should drive up the stock price, Truist analysts argue.

The Truist team made the upbeat assessment on Monday, two days before Nvidia (ticker: NVDA) is set to post fourth-quarter and fiscal 2022 results. In morning trading, shares were up 2.2%, to $244.80. The S&P 500 was down 0.4% and the Dow Jones Industrial Average was off 0.8%.

In a note, the ream predicted that Nvidia’s strong AI backbone would lead both management and other analysts to increase their earnings forecasts, which in turn would push the share price higher.

The stock had been weighed down by uncertainty before Jan. 25, the day that a Bloomberg report based on unnamed sources said Nvidia had abandoned plans to acquire U.K. chip designer Arm. On Feb. 7, Nvidia confirmed that the deal was off. The deal had faced scrutiny from regulators in the U.S. and abroad. Since the close of trading on Jan. 25, shares are up 9%; for the past 12 months, the gain is 62%.

Nvidia’s culture of innovation, significant outlay for AI software tools and models, and historically strong customer demand make the stock a Buy, according to Truist.

“NVDA continues to distinguish itself as the AI company, owing partly to its high-performance GPUs [graphics processing units] that provide the necessary parallel compute capability,” wrote analyst William Stein, who reiterated his price target of $350.

Nvidia’s AI innovations provide the company with two important things, Stein wrote—leverage over competitors and the opportunity to grow. Also, the investments in other aspects of computing, especially for graphics, solidify Nvidia’s position in the gaming and esports sectors.

All those factors support the company’s structural growth, which justifies its high stock price, he said.

For the past 18 months, Stein said buyers and sellers have talked about increased demand for Nvidia’s AI-enabled products.

“We anticipate the April quarter will likely represent a step-up in revenue forthis end market, and that there is a potential that CY22 accelerates,” Stein said.

The latest feedback from investors solidifies the point that demand is strong, wrote Stein, who models 46% organic growth in the data sector for 2021, and greater than 12% growth in the company’s gaming sector in 2022.

barrons.com

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From: Frank Sully2/19/2022 9:06:44 PM
   of 2485
 
Update to Exponential Growth Trend Analysis

As grxbstrd hypothesized, NVIDIA’s extra-good results for FY 2022, $10.0 billion in GAAP Operating Income, up 122% over FY 2021’s $4.5 billion, skews the exponential trend fit a bit, raising the CAGR to 41.3% from 38.7%. The FY 2027 forecast rises to $47.4 billion from $39.0 billion. The future looks bright!


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From: Glenn Petersen2/20/2022 1:17:25 PM
1 Recommendation   of 2485
 
Jensen Huang interview: Nvidia’s post-Arm strategy, Omniverse, and self-driving cars

VentureBeat
February 20, 2022
i
Nvidia CEO Jensen Huang didn’t get to fulfill his dream of acquiring Arm for $80 billion. Regulators held the deal up and Huang called off the deal after “giving it our best shot.”

But his company is still going strong. Nvidia reported revenues of $7.64 billion for its fourth fiscal quarter ended January 30, up 53% from a year earlier. Gaming, datacenter, and professional visualization market platforms each achieved record revenue for the quarter and year.

That shows the company has a lot of breadth as it figures out what it will do in the wake of the Arm deals collapse. And Huang said he has high hopes for his three-chip strategy, the Omniverse, the metaverse, and self-driving cars. I had a short time to interview Huang after the company reporting earnings this week.

Here’s an edited transcript of our interview.

VentureBeat: What is your post-Arm strategy? Do you have to communicate your strategic direction in light of [the Arm deal being called off]?

Jensen Huang: Not really anything. Because we never finished combining with Arm. So any strategies that would have come from the combination were never talked about. And so our strategy is exactly the same. We do accelerated computing for wherever there are (central processing units) CPUs. And so we’ll do that for x86. And we’ll do we do that for Arm. We have a whole bunch of ARM CPUs, and system-on-chips (SoCs) in development. And we’re enthusiasts. We do all that. We have a 20-year license to Arm’s intellectual property. And we’ll continue to take advantage of all that and all the markets. And that’s about it. Keep building CPUs, (graphics processing units) GPUs, and DPUs (data processing units).

VB: So it’s your three-chip strategy? Would you consider RISC-V now that the Arm deal is not happening?

Huang: We use RISC-V. We’re RISC-V users inside our GPUs. We use it in several areas. For system controllers, inside the Bluefield GPU, there is a RISC-V acceleration engine, if you will, a programmable engine. And we use RISC-V when when it makes sense. We use Arm when it makes sense. We use x86 when it makes sense.

VB: And how are you viewing progress on the metaverse? It seems like everybody’s a lot more excited about the metaverse, and the Omniverse is always part of that conversation.

Huang: Let’s see. Omniverse for enterprise is being trialed and being tested in about 700 or so different companies around the world. We have entered into some major licenses already. And so our numbers are off to a great start. People are using it for all kinds of things. They’re using it for connecting designers and creators. They’re using it to simulate logistics warehouses, simulate factories. They’re using it for synthetic data generation because we simulate sensors physically and accurately. You could use it for simulating data for training AIs that are collected from LiDAR, radars, and of course cameras. And so they’re using it for simulation part of the software development process. You need to validate software as part of the part of the release process. And you can put Omniverse in the flow of robotics application validation. People are using it for digital twins, too.

VB: You’re going to make the biggest digital twin of all, right? [Nvidia plans to make a digital twin of the Earth as part of its Earth 2 simulation, which will use AI and the world’s fastest supercomputers to simulate climate change and predict how the planet’s climate could change over decades].

Huang: We’re off building or scoping out the architecture and building the ultimate digital twin.

VB: And do you feel like we’re also heading towards an open metaverse? Will it be sufficiently open as opposed to a bunch of walled gardens?

Huang: I really do hope it’s open and I think it will be open with Universal Scene Description (USD). As you know, we’re one of the largest contributors, the primary contributor, to USD today. And it was invented by Pixar. It’s been adopted by so many different content developers. Adobe adopted it, and we have gotten a lot of people to adopt it. I’m hoping that everybody will go to USD and then it will be become essentially the HTML of the metaverse.

VB: What is your confidence level in the automotive division and how we are moving forward with self-driving cars? Do you feel like we are getting back on track after the pandemic?

Huang: I am certain that we will have autonomous vehicles all over the world. They all have their operating domains. And some of that is just within the boundaries of a very large warehouse. They call them AMRs, autonomous moving robots. You could have them inside walled factories, and so they could be moving goods and inventory around. You could be delivering goods across the last mile, like Neuro and others. All these great companies that are doing last-mile delivery. All of those applications are very doable, so long as you don’t over promise.

And I think there will be thousands an thousands of applications of autonomous vehicles, and it’s a sure thing. This year is going to be the inflection year for us on autonomous driving. This will be a big year for us. And then next year, it’ll be even bigger next year. And in 2025, that’s when we deploy our own for software where we do revenue sharing with the car companies.

And so if the license was $10,000, we shared 50-50. If it’s a subscription base of $1,000 or $100 a month, we share 50-50. I think I’m pretty certain now that autonomous vehicles will be one of our largest businesses.

Jensen Huang interview: Nvidia’s post-Arm strategy, Omniverse, and self-driving cars – DNyuz

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From: Frank Sully2/21/2022 9:20:42 AM
   of 2485
 
Desai Xiwei: based on Nvidia Orin chip can achieve L4 level

Feb 20, 2022

Source: Integrated microgrid

Note from Frank Sully: Another win for Jensen Huang and Team Green.

Recently, Desai Xiwei released a record sheet of investor relations activities, revealing that the company's advanced autopilot domain controller product-IPU04, which can achieve L4-level functions based on Nvidia Orin chip, has been assigned a number of projects and is currently in the process of research and development. the company will strive to promote its rapid large-scale production.

Desai Xiwei's main business is intelligent cockpit, intelligent driving, Internet service, its main products are in-vehicle infotainment system, body information and control system, driving information display system, intelligent driving auxiliary safety system and components. Desai Xiwei said that the company's intelligent cockpit domain controllers, large-screen cockpit products, digital instruments and other cockpit products have won new project orders from FAW Toyota, Great Wall, Geely, GAC MOTOR, Chery, BYD and other mainstream car companies.

However, due to the impact of the lack of core upstream on the automotive industry, Desai Xiwei said that the chip shortage problem not only affects the company but also affects the entire industry, and the company has actively taken measures from many dimensions, such as strengthening the acquisition of chips, strengthening product cost optimization, controlling management expenses, etc., but the follow-up operation is still uncertain.

Desai Xiwei stressed that the company attaches great importance to independent R & D and innovation; in addition to the R & D center in Huizhou, there are also R & D branches in Singapore, Europe, Nanjing, Chengdu, Shanghai, Shenzhen and other places. The existing R & D personnel account for 40% of the total number of the company. The company continues to deepen the optimization of R & D system architecture to create a platform, efficient and agile R & D system. Talents are the core of technology, and we hope to continuously improve the internal efficiency of R & D in the future.

news.metal.com


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From: Frank Sully2/21/2022 9:31:37 AM
   of 2485
 


grxbstrd

10 Jan. 2022, 6:37 PM

For those who haven't seen, here is a glimpse of some of Nvidia's self driving partners, both Self Driving and EV auto manufacturers - as mentioned/ highlighted in various blog posts (mostly) in 2021 (not stating list is comprehensive):

seekingalpha.com

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From: Frank Sully2/21/2022 10:08:33 AM
   of 2485
 
NVIDIA’s New AI: Wow, Instant Neural Graphics!

(Eight minute video)


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From: Frank Sully2/21/2022 10:17:53 AM
   of 2485
 
Stanford University uses AI computing to cut DNA sequencing down to five hours

Speeding up the genome sequencing process has earned the project a Guinness World Record title.

Note from Frank Sully: Another example of using NVIDIA’s GPUs and the Clara Parabricks computational genomics application framework for cutting edge AI and genomics research.



Written by Aimee Chanthadavong, Senior Journalist

February 20, 2022



Image: Steve Fisch/Stanford University.

A Stanford University-led research team has set a new Guinness World Record for the fastest DNA sequencing technique using AI computing to accelerate workflow speed.

The research, led by Dr Euan Ashley, professor of medicine, genetics and biomedical data science at Stanford School of Medicine, in collaboration with Nvidia, Oxford Nanopore Technologies, Google, Baylor College of Medicine, and the University of California, achieved sequencing in just five hours and two minutes.

The study, published in The New England Journal of Medicine, involved speeding up every step of genome sequencing workflow by relying on new technology. This included using nanopore sequencing on Oxford Nanopore's PromethION Flow Cells to generate more than 100 gigabases of data per hour, and Nvidia GPUs on Google Cloud to speed up the base calling and variant calling processes.

"We had to completely rethink and revamp our data pipelines and storage systems," Ashley said.

The researchers also relied on the Nvidia Clara Parabricks computational genomics application framework to speed up the genome diagnosis.

"It was just one of those amazing moments where the right people suddenly came together to achieve something amazing," Ashley said. "It really felt like we were approaching a new frontier."

For the study, the team tested the accelerated genome sequencing technique on undiagnosed patients in Stanford hospitals' intensive care units. A total of 12 patients enrolled and had their genomes sequenced. Of the total, five patients received a speedy return on their genetic diagnosis. In one of the cases, it took only five hours and two minutes.

The researchers believe reducing the DNA sequencing time would mean clinicians can diagnose patients and provide tailored treatments faster. The previous Guinness World Record for DNA sequencing was 14 hours held by Rady Children's Institute.

The team is now looking to reduce the time even further, believing it could be halved again.

"I think we can halve it again," Ashley said. "If we're able to do that, we're talking about being able to get an answer before the end of a hospital ward round. That's a dramatic jump.

zdnet.com

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From: Frank Sully2/21/2022 11:20:10 AM
   of 2485
 
Nvidia could spend $10 billion to secure RTX 4000 components



Fabricating the best graphics cards is tricky in 2022, but reports suggest that Nvidia is spending at least $10 billion USD to secure GeForce RTX 4000 series components. According to Hardware Times, the GPU giant will use the funds to grab a share of TSMC’s 5nm chips, alongside competitors like Apple, AMD, and Qualcomm.

Specifics related to Nvidia’s expenditure are sparse, but Hardware Times says the green team spent $9 billion USD on procuring future inventory in Q3 alone. This aligns with previous reports of factories gearing up to produce RTX 4000 graphics cards back in November and adds clout to previous Lovelace production rumours.

By opting for a 5nm process, future RTX 4070, RTX 4080, and RTX 4090 cards will boast enhanced clock speeds and power efficiency. However, shrinking process nodes could also help Nvidia cash in by reducing the number of wafers required during production.

It’s not clear whether Nvidia will pass the cost of its component spending spree to consumers, but a CPU and GPU price hike is already looming. While using fewer wafers could offset TSMC’s 10% mark up, high shipping and foundry costs are still at play.

It’s widely believed that component shortages could persist until 2023, but governing bodies like the European Union hope to combat scarcity with initiatives like the EU Chips Act. Naturally, these efforts won’t come to fruition before the RTX 4000 series’ suspected release date, so we’ll have to see whether next-gen GPUs succumb to the same fate as Nvidia’s current GPU offerings.



Phil Hayton
Hardware writer

Published: Feb 21, 2022

Meta, Oculus Quest, and VR will never live up to the Atari and Amiga in Phil’s eyes, but he’s happy to remove his retro-tinted glasses occasionally. He has bylines at TechRadar, GameByte, and the BBC.

pcgamesn.com

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From: Frank Sully2/22/2022 11:34:59 AM
   of 2485
 
Where Will Nvidia Be in 5 Years?

By Harsh Chauhan

Feb 22, 2022

KEY POINTS
  • Nvidia stock took a big beating even though the company delivered a solid quarterly report.
  • The chip designer could benefit from the massive growth in the video gaming, data center, and professional visualization businesses in the long run.
  • The projected earnings growth points toward an impressive upside over the next five years.
Investors should focus on the big picture after the tech giant's latest results.
Shares of Nvidia ( NVDA 0.27% ) fell 7.5% following the release of the company's fiscal 2022 fourth-quarter results on Feb. 16. That market reaction is a tad surprising given that Nvidia crushed Wall Street's expectations nicely thanks to terrific growth in its top and bottom lines.

Nvidia posted record quarterly revenue of $7.64 billion, up 53% from the prior year, while adjusted earnings popped 69% year-over-year to $1.32 per share. Analysts were looking for $1.23 per share in earnings on revenue of $7.42 billion, but outstanding growth in three of its biggest businesses helped it beat expectations.

NASDAQ: NVDA
NVIDIA Corporation

Today's Change (0.27%) -$0.63
Current Price $237.05

The graphics specialist also delivered a sizzling outlook, calling for 43% year-over-year revenue growth in the current quarter to $8.1 billion, compared to analysts' revenue expectations of $7.3 billion. The steep decline in Nvidia stock despite such impressive numbers doesn't seem justified, especially considering that the company looks all set for solid growth over the next five years at least.

Let's see where Nvidia could stand after five years, and why investors could make a smart move by buying the stock right now.



Image source: Getty Images

The gaming and data center businesses will power Nvidia higher

Gaming was Nvidia's biggest source of revenue last quarter, generating nearly 45% of its top line. Nvidia's gaming revenue increased 37% year-over-year to $3.4 billion during the quarter thanks to the robust demand for its graphics processing units (GPUs) across both desktops and notebooks.

Nvidia has bombarded the market with an army of laptops and notebooks powered by its graphics cards. CFO Colette Kress remarked on the company's latest earnings conference call that its RTX 30 series cards will be powering more than 160 new laptop designs. At the same time, demand for Nvidia's high-end desktop graphics cards led to record desktop revenue last quarter.

It is easy to see why Nvidia's gaming business registered such terrific growth last quarter, and is on track to repeat that performance once again in the current one, as the guidance suggests. With 83% of the discrete GPU market under its control, according to Jon Peddie Research, Nvidia is in a solid position to corner most of the incremental sales in this market.

The GPU market is expected to clock impressive growth over the next five years. Allied Market Research estimates that the GPU market could clock 33.6% annual growth for the next five years, and exceed $200 billion in value by 2027. Nvidia is unlikely to loosen its grip over this space thanks to its technology lead over rivals.

Even better, the company is expected to release its next generation of gaming GPUs this year, which could pack more than twice the computing power of the current generation of cards. As such, Nvidia's hegemony in the GPU market is here to stay, and should accelerate its growth over the next five years.

The data center business, on the other hand, produced nearly 43% of Nvidia's revenue last quarter. The segment's revenue increased 71% year-over-year, which means that it grew at a faster pace than the company's gaming business. Again, the massive growth in this segment isn't surprising, as the company reportedly commands over 80% of the data center GPU market.

Hyperscale and cloud customers are buying Nvidia's data center GPUs hand over fist, with revenue from these customers more than doubling over the prior year. Meanwhile, Nvidia's revenue from GPUs, which are aimed at data centers, tripled year-over-year on account of the growth in artificial intelligence (AI) workloads.

Third-party research forecasts that the data center GPU market could be worth more than $20 billion by 2027, clocking in at an annual growth rate of 42% for the next five years. Nvidia is in an outstanding position to make the most of this opportunity thanks to its solid market share and fast-growing sales.

The professional visualization business could explode

Nvidia's professional visualization business generated a record $643 million in revenue last quarter, recording 109% growth over the prior-year period. The segment's outstanding growth was driven by an increase in demand for more expensive workstations, as well as the need for creating hybrid work environments using the company's graphics processing abilities.

Duke Energy, for instance, is using Nvidia's GPUs to map, view, and maintain its energy production and delivery facilities. Motion, on the other hand, is using the company's graphics cards to provide predictive vehicle maintenance. It wouldn't be surprising to see more companies use Nvidia's GPUs to digitize their physical operations, especially considering the proliferation of the metaverse.

The metaverse would encourage organizations to bring their physical operations into the virtual world, unlocking a massive growth opportunityfor Nvidia. This explains why Nvidia's Omniverse enterprise software platform is witnessing solid initial traction "with multiple significant enterprise licensees already signed."

With a minimum order value of $9,000 a year for its Omniverse Enterprise solution, the growth in the number of licensees using this platform could give the professional visualization business a nice shot in the arm. Additionally, the metaverse market is expected to grow from $45 billion in 2020 to $596 billion in 2027, indicating that the professional visualization business could be at the beginning of a remarkable growth curve, and become much bigger in the next five years than it is now.

The next five years could make investors richer

The massive growth opportunities discussed above and Nvidia's dominant position in multiple markets indicate why the company's earnings could clock a compound annual growth rate (CAGR) of nearly 35% for the next five years. At this pace, Nvidia's adjusted earnings could increase from $4.44 per share in fiscal 2022 to nearly $20 per share after five years.

Nvidia stock has traded at an average forward earnings multiple of 40 in the past five years. Assuming a similar multiple for the next five years and the projected earnings calculated above, Nvidia's stock price could hit $800. That would translate into a 225% upside from the company's closing stock price on Feb. 17. All this indicates that Nvidia is a top growth stock to buy right now, as it is trading at 63 times trailing earnings, which is a big discount to its 2021 average earnings multiple of 90.

fool.com

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To: Frank Sully who wrote (2398)2/22/2022 11:45:16 AM
From: Frank Sully
   of 2485
 
Revised Update to Exponential Growth Trend Analysis

For some reason, my graph disappeared from the post. Here it is again!

As grxbstrd hypothesized, NVIDIA’s extra-good results for FY 2022, $10.0 billion in GAAP Operating Income, up 122% over FY 2021’s $4.5 billion, skews the exponential trend fit a bit, raising the CAGR to 41.3% from 38.7%. The FY 2027 forecast rises to $47.4 billion from $39.0 billion. The future looks bright!


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