Main article: Nvidia
2024
Nvidia bypassed Apple to become the most expensive company in the world
Nvidia rode the wave of AI and beat Apple as the world's largest company in November 2024.
Nvidia is the most successful company in the history of securities circulation - no one managed to increase such a volume of capitalization so quickly.
Over two years, the company has updated many records in terms of capitalization recruitment speed and trading volume.
9-month net profit growth of 190% to record $50 billion
Nvidia is the company that shaped the dynamics of the entire S&P 500 index, at the moment contributing more than half to the index's gain.
All the power of Nvidia over the past three years is due solely to the data center segment and AI solutions.
In 2017, the share of the data center segment in the structure of total revenue was only 18%, in 2019 the share increased to 27%, in 2021 it is already 38%, in 2023 - 73%, and according to the latest reporting data, a record 87% or $98 billion in annual revenue.
Nvidia's total annual revenue rose to $113 billion with growth potential to $140 billion in 1Q25.
However, revenue not related to high-performance AI solutions is only 15.3 billion, which is comparable to the level that was three years ago - an increase of 0% over three years, Spydell Finance wrote.
Other segments include:
- game video cards,
- Professional Visualization (Embedded in Industrial Automation and Computer Aided Design) and
- Automotive and Robotics.
Moreover, for the last two segments, the total annual revenue is only $3.2 billion without growth trends, and for game cards - $11.7 billion, which is below the maximum of $13.3 billion at the beginning of 2022.
Nvidia without AI is a stagnant business. All phenomenal growth is due solely to the date of the centers for AI.
Moreover, in this direction, over 50-60% of Nvidia's revenue is generated by only 5 companies: Google, Microsoft, Meta, Amazon and Tesla.
The investment cycle lasts an average of three years, began at the end of 2022, i.e. in the middle of 2025 impulse investments will be completed. Dependence on leading bigtechs is phenomenal (at least 2/3 of all revenue), so rapid revenue growth is likely to be followed by a similarly rapid drop. There are no more such aggregators of capex in the world like the above bigtechs.
In addition, AMD is going to storm the AI Olympus in 2025. AMD now has an AMD Instinct MI300X that can compete with the past generation of nVidia chips, in early 2025 AMD will begin implementing AMD Instinct MI325X, which will lead to parity with current Nvidia technologies, but inferior to Blackwell chips.
AMD is going to reach parity by 2027 with AMD Instinct MI400 chips, but then Nvidia will have new solutions and, in general, a lag of one generation, but we cannot talk about absolute dominance.
For 9 months of 2024, Nvidia's revenue reached 91.2 billion, an increase of 134.8% compared to 9m23, + 335.7% to 9m22 and + 1067% to 9m19.
For 9m24, net profit amounted to $50.8 billion, an increase of 190.7% compared to 9m23, + 1620% to 9m22 and + 2653% to 9m19.
Nvidia's net profit in the third quarter reached a record high of $19.3 billion. This is 109% more than last year, when net income was $9.2 billion.
For 9m24, operating cash flow amounted to 47.4 billion, an increase of 186.1% compared to 9m23, + 1299% to 9m22 and + 1340% to 9m19.
Nvidia spends almost nothing on dividends - only 0.25 billion in 3Q24. For 9m24, the company spent 0.59 billion on dividends, which is twice as high as in 2023, 2022 and 2019.
Net baibek amounted to a record 12.88 billion for 3Q24. For 9m24 - 31.4 billion, which is 241.2% more than in 9m23, + 205.2% to 9m22 and + 5065% to 9m19.
Capital expenditures for 9m24 increased to 2.16 billion, which is 165% more compared to 9m23, + 63.1% to 9m22 and + 527.6% to 9m19.
Unlike tech giants, Nvidia spends nothing on capital expenditures, working according to a contract scheme with TSMC.
Nvidia's dominance could end near the end of 2025 as AMD develops and the bigtech investment cycle ends.
Sales in Q1 exceeded the indicators for the entire last year
All dominance Nvidia is due solely to date centers, i.e. almost 90% of revenue is generated in this segment. Over 8 years, revenue has grown by two orders of magnitude (100 times) in supply DPC under. AI
All other business segments (Gaming and AI PC, Professional Visualization, Automotive and Robotics) are literally insignificant on the scale of current results, generating about $12-14 billion in revenue per year with a downward trend. In 2020, the above segments earned $15.1 billion, in 2021 - $15.5 billion, in 2022 - $11.5 billion, in 2023 - $13.1 billion and potential up to $13 billion in 2024.
NVIDIA's capitalization reached $2.59 trillion and exceeded the GDP of Russia, Canada and Brazil. Two years ago, the company was valued at about $418 billion.
2023
More than 60% of revenue comes from data center solutions
According to the results of the 3rd quarter of 2023, over 60% of the company's revenue structure is brought data centers by only 30% of the gaming division, which is largely fed at the expense, miners cryptocurrencies while gamers form no more than 10% of revenue against over 90% in the early 2000s.
Nvidia's main advantage is its high operating margin, which grew from 15% in 2014-2015 to 30% from 1q20 to 3q23, over the past year - 40% and an incredible 57% in 3q23. All this is against the background of almost zero capital expenditures ($1.2-1.7 billion per year).
Nvidia occupies a special position in the market and at that time is actually a monopoly on the supply of high-performance computing solutions for data centers.
In a sense, Nvidia is the AI market, because the main driver of the exponential expansion of computing resources, the date of centers from 2020, is calculations related to AI projects, while from 2010 to 2020 the industry developed cloud technologies.
World's first $1 trillion chip maker
On May 30, 2023 Nvidia , Corp. became the world's first chip maker with a market cap of 1 trillion. dollars
A few days before, on May 25, Nvidia's capitalization grew to $940 billion, which is 70-75 times higher (!) Than in 2015 and 100 times in 10 years - this is the most significant increase in capitalization in absolute terms for all world companies, worth over $10 billion.
At this time, Nvidia ranks 5th among the most expensive US companies after Apple (2.7 trillion), Microsoft (2.4 trillion), Google (1.6 trillion) and Amazon (1.1 trillion).
Since the beginning of the year, an increase of 155%, which is the second strongest increase in capitalization (after Symbotic with an increase of 191%) in relative terms among all companies more expensive than 10 billion.
Trading volume for the day amounted to almost $60 billion, which is probably the highest daily turnover in the history of trading among all shares of the world.
What is $60 billion? The volume of trading in all shares on the Moscow Exchange for the month amounted to $20 billion in April - this is the maximum turnover since February 2022, and so after the outbreak of the conflict in Ukraine, they usually traded half as much. All shares for a month, and here in the USA one company and one day!
The increase in capitalization per day amounted to almost $200 billion - this is the strongest one-day increase in capitalization in the entire history of trading in shares around the world, Spydell Finance wrote. Prior to that, Apple had records on November 10, 2022 (191 billion), Amazon on February 4, 2022 (191 billion), once again Apple on January 20, 2022 (179 billion), Microsoft on March 13, 2020 (150 billion) and Tesla on January 3, 2022 (144 billion).
What is a capitalization increase of 200 billion per day? This is almost IBM Intel with a small surcharge (230 billion for two) or the cost Gazprom Novatek and combined or almost all Russian metallurgists at once MMC Norilsk Nickel(,,,,,) and Pole Severstal NLMK the MMK RUSAL ALROSA delivery remains at 1.3 trillion))
One of the strongest squash shorts in the history of the global stock market. In total, more than $2.2 billion of players were destroyed per share for a decrease in a few minutes after the opening of trading on Nvidia shares.
The estimated value of short positions as of May 24 was $8.7 billion, and after a record gap, demands simultaneously increased to $10.9 billion. How much was closed at the auction on May 25 is unknown, but there was a lot of pain.
At the same time, short interest has consistently decreased throughout 2022 - by almost 30%, if assessed by Nvidia shares, which are in short positions.
The event is historic and unique.
Shifting revenue from gamers to automation, AI and autopilots
Nvidia's February-April 2023 report came out worse than last year, as revenue fell 13%, but profit rose 26%, but profit was far from the record.
For example, in 2021-2022, net profit at the maximum reached 3 billion per quarter and was on average 2.44 billion for four moving quarters. Now profit is 2 billion, and revenue is 7.2 billion (the maximum was a year ago - 8.29 billion).
The gaming division is raining at a rate of almost 40% YoY, the professional visualization segment has collapsed twice, and the financial situation is compensated by the date centers and the autopilot segment.
Date centers are growing by 14% YoY and now form almost 60% of revenue, but Nvidia is waiting for a bright future for AI. 15 years ago, over 80% of the revenue was brought by 3D gamers, and now the emphasis is changing a lot towards automation, autopilot and AI.
2022
Share of business revenues in China - 21%
Technologies for data centers and the gaming industry - the basis of revenue in the second quarter
Losses in the I kartal in the amount of $500 million due to the suspension of sales in Russia and problems in China
At the end of May 2022, Nvidia reported a loss of $500 million in quarterly revenue due to the suspension of sales in Russia and the lockdown in China, introduced after the outbreak of the coronavirus COVID-19. In particular, $400 million in lost revenue is associated with the division of gaming solutions, and $100 million - with the direction of technologies for data centers.
Nvidia CFO Colette Kress, at a conference on the publication of the company's financial statements, noted that quarantine in China and logistics problems had a negative impact on consumer spending. The pandemic and self-isolation only at the first stages stimulated people to buy gaming solutions, and by May 2022 they are more concerned about the purchase of essential goods. One way or another, Nvidia expects that as sanitary restrictions in China are lifted, demand in the gaming segment will return to normal, Kress said.
According to her, the Russian market accounted for about 2% of Nvidia's total turnover. If, for example, we take the company's revenue for fiscal year 2021 ($16.68 billion), then it turns out that during this period the manufacturer earned about $333 million in the Russian Federation. Kress noted that most of the revenues are products for gaming equipment.
Since the beginning of March 2022, Nvidia has not supplied new products to Russia. PCMag suggests that Nvidia RTX 3000 cards, which are used for mining, are likely to appear on the Russian market through suppliers - Gigabyte, MSI and Asus.
According to the results of the first quarter of fiscal 2023, which ended on May 1, 2022 for Nvidia, the company received revenue of $8.29 billion, which is 46% more than a year earlier. Sales turned out to be a record for the company, but its net profit decreased - by 15%, to $1.62 billion.[1]
8th in the world in terms of capitalization
2021: Revenue growth by 53%, to $16.68 billion, profit by 55% - to $4.33 billion
At the end of fiscal 2021, Nvidia received the highest revenue in its history - $16.68 billion, which is 53% more than a year earlier. This rise was facilitated by server and game solutions, the sales of which also turned out to be record.
Nvidia's data center technology division registered a turnover of $6.7 billion in 2021, 124% higher than a year ago.
In the direction of products for gamers, there was revenue of $7.76 billion, an increase of 41% on an annualized basis. The report said that by the end of December 2020, more than 70 models of gaming-grade laptops using Nvidia GeForce RTX 30 GPUs were available on the market.
Gamers have also responded well to a new set of advanced technologies for graphics cards, G-SYNC displays and Nvidia Reflex software. It allows you to measure and reduce system latency in competitive games, the company said.
In the professional graphics segment, the company's revenue at the end of 2020 decreased by 13%, to $1.05 billion. Sales of solutions for cars decreased by 23% - to $536 million.
Nvidia completed 2021 fiscal with a net profit of $4.33 billion against $2.8 billion in profit a year earlier. The purchase of Mellanox made a significant contribution to revenue and profit growth.
Cryptocurrency mining brought Nvidia $100-300 million in revenue at the end of 2020. The company did not give exact numbers, as it does not track the final use of its video cards.
The rate of Nvidia quotes on the day of publication of statements for the 2021 fiscal year decreased 2.2%. The company's shares rose to a record high of $613.21. Over the past 12 months (by February 24, 2021), Nvidia's market capitalization has more than doubled (to $350 billion).[2]
2020: Revenue decline 7% to $10.92 billion
Nvidia ended fiscal 2020 with revenue of $10.92 billion, down 7% from sales a year ago. The 12-month reporting period came to an end for the company on January 26, 2020 calendar.
Nvidia GPU sales totaled $9.47 billion, down 7% from fiscal 2019. Tegra processor sales fell 6% to $1.45 billion.
The company's largest revenues still come from gaming solutions. Nvidia earned about $5.52 billion on them for the year, which is 12% less than a year earlier.
The volume of technology for data centers increased by 2% and reached $2.99 billion in fiscal 2020. Against the background of the rapid growth in the number of mobile and Internet applications, operators of the largest data centers, such as Amazon and Facebook, are actively expanding their data centers and building new ones. Thanks to this trend, Nvidia is increasing revenue from sales of server solutions. According to Reuters, the company leads in sales of chips used to train artificial intelligence models, and Nvidia investors most of all follow the business of producing solutions for data centers.
Professional solutions in the field of visualization added $1.21 billion to revenue at the end of the 2020 reporting year. This is 7% higher than a year ago. Revenues from the sale of chips and technologies for cars in 2020 financial year amounted to $700 million against $641 million in 2019.
In fiscal 2020, Nvidia's net profit was equal to $2.8 billion, having decreased by a third compared to profit in 2019. The company also said that due to the coronavirus, the company may miss $100 million.
On the day the financial results were published, Nvidia shares updated the record due to the fact that revenue, profit, as well as revenues in the field of data center solutions exceeded market expectations.[3]
Later, in July 2020, the company was close to bypassing Intel's capitalization.
2019
The average salary is $162 thousand.
Revenue growth of 21% to $11.72 billion; earnings up 36% to $4.14 billion
In fiscal 2019, closed on January 27, 2019 calendar, Nvidia sales reached $11.72 billion, an increase of 21%. The company has never had such a high revenue.
Income in many divisions turned out to be record. Thus, in the business of producing gaming solutions, annual revenue amounted to $6.25 billion against $5.51 billion in fiscal 2018.
In the segment of professional graphics adapters for workstations and desktops, Nvidia earned $1.13 billion, which is 21% more than a year ago.
Sales of processors and technologies for data center equipment brought the company an annual turnover of $2.93 billion, which is 52% higher than the result of the previous year.
The division responsible for producing automotive electronics solutions posted a 15 percent year-over-year revenue increase. In 2019, sales here reached $641 million.
In the sales revenue for the OEM segment for the year decreased by 1% to $767 million. The company includes GPUs for mining accelerators and Tegra processors for the Nintendo Switch console. Nvidia notes that the demand for chips for cryptocurrency has practically disappeared.
Sales of Nvidia Tegra processors in fiscal 2019 amounted to $1.54 billion, which is approximately the same as a year ago. Sales of graphics chips jumped 25% and exceeded $10.17 billion.
Net profit, like revenue, at Nvidia in 2019 was a record - $4.14 billion. Compared to the previous year, it rose by 36%.
On February 14, 2019, when Nvidia published its financial statements, the company's shares rose 5.3% in electronic trading after the exchange closed. The rise in quotations was due to the fact that the chipmaker's revenues and forecasts exceeded Wall Street's expectations.[4]
2018: Record revenue ($9.71 billion; + 41%) thanks to data centers
In fiscal 2018, Nvidia generated record revenue, helped by demand for the company's chips used in, gaming data centers devices and mining equipment. cryptocurrencies
For the 12-month reporting period closed on January 28, 2018, Nvidia sales reached $9.71 billion, an increase of 41% compared to the previous year. Net profit jumped 83% to more than $3 billion. This included expenses in the amount of $133 million incurred by the manufacturer of graphic solutions in connection with the tax reform in the United States.
Nvidia's fastest growing business remains the sale of data center solutions. The corresponding direction brought the company revenue in the amount of $1.9 billion in fiscal 2018, which is 133% more than a year ago. Architecture is mentioned Volta as the main revenue locomotive in this direction.
Volta processors are used in various technologies, including those related to artificial intelligence and self-driving cars. Almost every Internet and cloud service provider uses Volta graphics solutions, said Nvidia CEO Jensen Huang.
At the same time, most of the turnover of the American vendor is occupied by gaming products, the sale of which increased by 36% to $5.5 billion. In the division specializing in the production of professional graphics adapters for workstations, annual revenues increased by 12% to $934 million.
Nvidia's automotive business grew by 15%, reaching $558 million. According to Jensen Huang, sales and profitability in this sector will only become truly high in 2019-2020.
On the day Nvidia published its 2018 financial statements, the company's shares rose 12%. Over the previous 12 months, quotes rose 83%.[5]
2017: Record revenue - $6.9 billion (+ 38 %)
On February 9, 2017, Nvidia released its fiscal year 2017 performance report. The company received record revenue thanks to more than double the growth of the data center business.
For the 12-month reporting period ended January 29, 2017, Nvidia sales reached $6.9 billion. Revenue climbed 38% and turned out to be the highest in the history of the company. The net profit of the American graphics manufacturer increased by 171%, amounting to $1.67 billion. Operating profit increased by 159% to $1.9 billion.
Most of Nvidia's revenue is still generated by sales of gaming solutions, which jumped 44% in fiscal 2017 and exceeded $4 billion. The largest increase - by 145% - was shown by the chip division for equipment used in data centers. Here, the annual turnover was measured at $830 million.
Nvidia's automotive business grew 52% to $487 million. In the division specializing in the production of professional graphics adapters for workstations, revenues increased by 11% to $835 million.
From the Nvidia report, it follows that the company's revenue in the OEM segment continues to decline, although royalties from Intel are still coming in a stable amount (in the fourth quarter of 2017, they amounted to $66 million). Thus, Nvidia is less and less interested in the markets of ready-made PCs and laptops for corporate customers, while the vendor's products are widely represented in gaming systems and professional workstations.
For the reporting year, Nvidia earned $5.8 billion in graphics sales, which is 39% more than a year ago. Tegra processors, which can be found in mobile devices, laptops and automotive electronics, brought the company revenue of $824 million (+ 47% year on year[6]
According to the results of the first quarter of the 2018 financial year, Nvidia predicts revenue at $1.9 billion plus or minus 2%, while analysts polled by Thomson Reuters expect sales of $1.88 billion.
2011: Revenue growth of 6% to $3.54 billion
According to a report published by Nvidia in February 2011, the company's revenue in the 2010-2011 fiscal year, which ended on January 30, 2011, amounted to $3.54 billion, an increase of about 6% compared to the previous year. Profit amounted to $253.1 million against a loss of $68 million a year earlier.
Notes
- ↑ Nvidia shares tumble as China lockdown, Russia blamed for dent in outlook
- ↑ NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2021
- ↑ NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2020
- ↑ NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2019
- ↑ NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2018
- ↑ ). #sthash.ThR1fzxI.dpu NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2017
| The site content is translated by machine translation software powered by PROMT. The machine-translated articles are not always perfect and may contain errors in vocabulary, syntax or grammar. Read original article If you find inaccuracies or errors in the results of machine translation, please write to editor@tadviser.ru. We will make every effort to correct them as soon as possible. |