![]() ![]() On March 20, I published a special edition of Zacks Confidential (ZC) where I outlined why NVIDIA was still the reigning “King of AI” and how the acceleration of, and access to, tools from ChatGPT had just put the stock back on the launch pad - even though we already had 100%+ gains from buying the October lows.Īt the time, I was looking at consensus estimates for NVDA sales of about $30 billion for this fiscal year (ends in January) and around $37 billion for next year.īut we were already starting to see the optimism being expressed in those 12-24 months forward estimates as ChatGPT ignited like wildfire and NVIDIA was inking deals left and right with partners like Microsoft MSFT. Datacenter demands for NVIDIA AI “massively parallel architectures” would overtake Gaming revenues in the early 2020s. Advances in Gaming GPU R&D were teaching NVIDIA engineers what they needed to know to build the foundations of world-changing Artificial Intelligence (AI).Ģ. Maybe they got scared by the “smart trucks” (large quantitative investors) accelerating behind them.īut if they had only listened to me in my umpteenth explanation of why you buy NVDA at all valuations between 10 and 15 times sales, they would have been looking forward.įor years I have said two things over and over again ġ. Because when NVIDIA reported quarterly earnings on May 24, those looking in the rearview mirror ran off the road in bewilderment. Where were investors and journalists - and armchair analyst-traders - getting these ridiculous numbers? There was first talk of NVDA trading at 100 times on a price to earnings (PE) basis. ![]() In 2018 at the Gamescom conference in Cologne, Germany, CEO Jensen Huang joked that you could buy the first generation DGX server - with 8 Tesla Volta GPUs capable of 1 PetaFLOPS (1 quadrillion floating-point operations per second) - for “just 3,000 easy payments of $19.95.”īelow I will share links to the NVIDIA AI experts and partners that I profiled in today’s video who break down the power of the DGX “superpods.”įirst, here’s a quick intro to the controversy…Īs NVIDIA cruised into the stratosphere of $1 trillion valuations, one of the most common remarks heard across business and social media was “Oh my, look at that sky-high valuation!” The video attached to this article explains what a DGX “box” is, how it works, and the evolution of configurations that make them sell for between $100,000 and $150,000. I’ll share much of those details here, plus follow-up by providing more color on where the leap in sales forecasts is coming from: the DGX servers which are used to build the “massively parallel architectures” for AI workloads. My goal was to describe both the 40% jump in annual sales forecasts this quarter and the multi-trillion dollar TAM (total addressable market) of AI applications that NVIDIA is serving, which justifies those revenue projections. This week I wrote an article about the valuation controversy surrounding shares of NVIDIA NVDA. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |