The NVDIA Sweepstakes

[Nbadan]

#this thread of for entertainment purposes only and not to be used as investment advice. any risk of gain or loss is 100% the responsibility of the investor and not contributors to this thread nor the owners of Spurstalk.....that said..

Those who play the market know what is riding on NVDIA after hours earnings today. She beats earnings and has a positive forward guidance and she rips past 500....miss earnings even slightly or have a negative forward guidance..and she plummets to 400 taking every tech stock and the SP 500 with it.

Not since Tesla's meteoric rise and subsequent fall have after hour earnings been more anticipated..if you are an investor...you know

Any clues to what could happen? There are some

[Nbadan]

TAIPEI, June 1 (Reuters) - Nvidia Corp, a major supplier of chips and computing systems for artificial intelligence (AI), feels "perfectly safe" about relying so much on chip powerhouse Taiwan for manufacturing, its chief executive Jensen Huang said on Thursday.

Some companies have expressed concerns about potential risks to business given heightened military threats by China against the democratic island of Taiwan, which Beijing claims as its own, to Taipei's strong objections.

[Nbadan]

Taiwan produces the vast majority of the world's most advanced chips and is home to Taiwan Semiconductor Manufacturing Company Ltd (TSMC) (2330.TW), the world's largest contract chipmaker and supplier to major companies like Apple Inc , U.S. chipmaker Nvidia Corp (NVDA.O) and chip designer Qualcomm Inc.

Chips are crucial for building everything from iPhones and washing machines to cars and fighter jets.

[Nbadan]

Nvidia and Taiwan Semiconductor aren’t competitors. In fact, Nvidia itself is a customer of Taiwan Semiconductor and has collaborated with the company in manufacturing the graphic chips it designs.

[Nbadan]

When NVIDIA announced its new Tesla V100 accelerator -- based on a chip code-named GV100 -- it disclosed that those GV100 chips are manufactured using Taiwan Semiconductor's 12-nanometer FFN technology. NVIDIA describes that as a variant of TSMC's 12-nanometer technology (which itself is an enhancement of the company's 16-nanometer technology) customized specifically for NVIDIA's use.

This is the first time that NVIDIA has ever talked about such a customized technology publicly.

[Nbadan]

Nvidia earnings are now expected to drop -26% in its current fiscal 2023 at $3.27 per share. This is down from $4.44 a share in 2021. However, FY24 earnings are projected to rebound 34% at $4.37 a share. Earnings estimate revisions have declined for both FY23 and FY24 over the last 90 days.

https://www.nasdaq.com/articles/nvidia-nvda-vs.-taiwan-semiconductor-tsm:-which-is-the-better-investment-for-2023

[Nbadan]

From Zacks...

Bottom Line


Going into 2023, Taiwan Semiconductor appears to be the better investment at the moment. TSM sports a Zacks Rank #2 (Buy) in correlation with rising earnings estimate revisions for its current fiscal 2022 with stellar bottom line growth expected.

On the other hand, Nvidia stock lands a Zack Rank #4 (Sell) at the moment with earnings estimates declining for its current fiscal 2023 which is already expected to be a down year.

https://www.nasdaq.com/articles/nvidia-nvda-vs.-taiwan-semiconductor-tsm:-which-is-the-better-investment-for-2023

[Nbadan]

“So TSMC, if you just have a look at market share, I believe manufactures around 50% of all semiconductors in the world. And I think that still understates how important it is, because these are some of the most advanced chips out there,” said Wang.

Semiconductor designers and manufacturers are on a quest to make chips smaller and better. Currently, TSMC and its South Korean rival Samsung
are the only foundries capable of manufacturing the most advanced 5-nanometer chips.

[Nbadan]

Nvidia Said To Be Tripling Production of World's Hottest AI Chip for 2024 — But Will Supply Chain Snags Bite?

As the global tech sector grapples with supply chain disruptions, NVIDIA Corporation


NvDIA has reportedly made a bold move to triple the production of its highly sought-after H100 AI processor for the year 2024. This strategic response comes as supply chain challenges reverberate across the industry, impacting not only Nvidia but also major players like Hon Hai Precision Industry Co Ltd, HNHPF, better known as Foxconn, and Lenovo LNVGF
.

[Nbadan]

However, Nvidia’s surge in production is emblematic of broader supply chain challenges felt across the tech sector, including cloud service providers like Microsoft, Amazon, and Google, according to FT. With cloud service providers increasingly channeling investments into AI infrastructure, general-purpose servers are seeing a slowdown in demand, resulting in revenue drops for companies like Lenovo.

[Nbadan]

While the current supply chain bottlenecks present challenges, the sector is poised to reap massive rewards once these issues abate. Shipments of servers for training AI algorithms are projected to triple in the coming year, while AI servers’ share of the overall server market is expected to rise from 7% last year to approximately 20% in 2027, as per the report.

[Nbadan]

U.S. blacklists dozens of Chinese firms including SMIC, DJI


The United States added dozens of Chinese companies, including the country’s top chipmaker SMIC and Chinese drone manufacturer SZ DJI Technology Co, to a trade blacklist on Friday as U.S. President Donald Trump’s administration ramps up pressure on China in his final weeks in office.

Reuters first reported the addition of SMIC and dozens of additional companies early Friday. The move is seen as the latest in Republican Trump’s efforts to cement his tough-on-China legacy as part of lengthy fight between Washington and Beijing over trade and numerous economic issues.

The U.S. Commerce Department said the action against SMIC “stems from China’s military-civil fusion (MCF) doctrine and evidence of activities between SMIC and entities of concern in the Chinese military industrial complex.”

[Nbadan]

“The problem that SMIC is in now, the dilemma, is the U.S. government has put them on the entity list,” he said. “But the bigger picture is that SMIC has been cut off, at least for the moment, from acquiring the really cutting-edge equipment it needs from ASML
, which is a Dutch company.”

ASML makes the so-called extreme ultraviolet lithography equipment that’s used to produce the most advanced chips such as those manufactured by TSMC and Samsung. Reuters reported last year that the Trump administration pressured the Netherlands government to stop the sale of the machine to SMIC.

[Nbadan]

Nvidia Stock: Will a Beat Be Enough?

On 6/14/23, Collette Kress, Nvidia CFO held a Q&A at the Jefferies Investor Conference . In particular, there is one question on all investors’ minds.


Question

“You guys gave guidance for the July quarter, which beat everybody’s expectations and 50% sequential growth. And I think there is a concern from investors that this is kind of a one-time spike that will come back down. I know you only guide one quarter at a time. But what do you say to investors who have a concern that it’s a one-time spike? And can you just talk in general terms, what is the visibility typically like with the data center and hyperscale companies?”

Colette Kress

“Yes. What we have seen is certainly an astounding amount of interest worldwide globally from many different types of customer sets […] We have better visibility than what we have seen before and our ability to focus right now on procuring the supply.

As we indicated in our earnings, we have procured the supply to the demand that’s been put in front of us and that visibility that we see. […] So our guidance for Q2 is really building upon years and years of working of the industry on accelerated computing and solutions such as AI. And we continue to see demand and demand visibility for the full year as well that we believe will sustain as we finish in Q2.”

[Nbadan]

H100s are priced differently depending on where they are sourced. The Information has the H100s at $20,000 yet sourced an analyst that believes we could see over 1M H100s sold in 2023. This arrives at $35 billion in sales. Given these variables, and credible sources, it appears $30 to $40 billion is the range going into Q2 earnings that analysts want to see for full year data center revenue.

We believe the market will react negatively if Nvidia provides Q3 guidance that is in-line with consensus or lower than 12%. On the flip side, Nvidia will likely need to provide guidance of at least greater than 20% for a significant positive reaction. This is because consensus will likely need to make upward revisions to their earnings for the remainder of FY2024 and FY2025. This is critical to support the current valuation.

Our base case assumption is that Nvidia’s Q3 guidance will estimate q/q growth of at least +20%. Remember, H100 was only introduced to the market toward the end of the last calendar year. Q1FY24 was the very first quarter where Nvidia is beginning to see the impact of AI and demand for the H100. Ultimately, we believe Nvidia will close out the year with data center revenue that is 50% higher than Q2.

[Nbadan]

“I know that you have fielded this question probably 1,000 times since you reported there is kind of this view that all of your growth is driven by ASPs and maybe not as much by units. And how should investors think about the ASP growth versus the unit growth in the quarter past and the quarter outlook?”

Colette Kress


“No. We truly are seeing demand and need across such a wide group of folks. And that’s not just based based on selling a brand new architecture and ramping a new architecture, Hopper architecture. We are still shipping our existing prior architecture. But no, this is not about ASPs, this really is about just the growth that we are seeing in focusing on AI and accelerated computing. I believe more of it is just about sheer volume of companies that are really interested in taking this next step and really leveraging generative AI for all the work that they do. That’s really what it’s about.”

CFO Kress’s answer is important because it indicates further potential for margins to expand not just from pricing. On a three-year basis, Nvidia has just returned to its prior peak of about 65% gross margins (reported). Given the positive pricing and unit demand dynamics, the new normal is perhaps between 65% and 70% gross margins:

https://www.forbes.com/sites/bethkindig/2023/08/23/nvidia-stock-how-we-plan-to-position-for-q2-earnings/?sh=181f34e92f5c

[DeadlyDynasty]

Holding steady at 467 for now, but man she has been fluctuating like crazy the past week. iirc it was as low as 405 about a week or so ago

[Nbadan]

Holding steady at 467 for now, but man she has been fluctuating like crazy the past week. iirc it was as low as 405 about a week or so ago

2.3% gain is not too shabby for earnings anticipation....of course, the real price action, up or down, will happen after the closing bell

been watching the charts...everytime it starts to dip, the dips get bought up

[Nbadan]

Therefore, the ex-post share price performance of Nvidia when it announces its fiscal Q2 earnings … is likely again to play a key determinant in the performance of the leading Nasdaq 100 in the remaining months of 2023 which will likely have a spillover effect throughout the global equities space as well,” analyst Kelvin Wong of broker Oanda wrote in a Wednesday note.

The main concern for investors is that expectations may be too high. Nvidia needs to beat—probably significantly beat—expectations to keep momentum behind the stock, which trades at a valuation of 237 times last year’s earnings. The bullish view is that the growth outlook over AI could be so good as to warrant a fundamental review of the valuation based on forward earnings projections.

Nevertheless, “Nvidia now faces a higher bar of overcoming such highly optimistic expectations than before during the prior May 2023 earnings release,” Wong noted. “Any minuscule disappointment in Q2 earnings numbers and or outlook trend is likely to trigger a significant negative feedback loop in the share price of Nvidia that may jeopardize the current bullish trend of the Nasdaq 100.”

[DeadlyDynasty]

2.3% gain is not too shabby for earnings anticipation....of course, the real price action, up or down, will happen after the closing bell

been watching the charts...everytime it starts to dip, the dips get bought up
Yeah it’s been wild, I only have a pittance invested in NVDA unfortunately. I just put most of my eggs in the LAC basket when it dropped below 16.50 last week. Hoping it hits 200 by 2027:lol

[Nbadan]

Yeah it’s been wild, I only have a pittance invested in NVDA unfortunately. I just put most of my eggs in the LAC basket when it dropped below 16.50 last week. Hoping it hits 200 by 2027:lol

Truth disclosure: I bought put spreads this morning at $100 each with a strike price of 450.

Im betting that in the short term, NVDIA's over reliance on Tiawan semiconductor could stifle their plans for growth in 2024.

All we need is one piece of negative news, ie TESLA...beating earnings but negative perceived guidance, for this stock to collapse

[Nbadan]

growing along the moving day average is pretty normal......we are currently at 2.9% growth for the day.

Next ceiling is at 472. Those big green bars are a big boy buying. I wonder if they know something?

[baseline bum]

Hope the AI bubble bursts so we ever get decently priced gpus again. $500 for an RTX 4060 Ti 16GB is lunacy when that card is more like a 50 series card historically by how much it has been cut down vs the flagship. 50 series card was like $150 until fucking ether allowed the wholly unimpressive RTX 3050 to go for a $300 MSRP.

[Nbadan]

Hope the AI bubble bursts so we ever get decently priced gpus again. $500 for an RTX 4060 Ti 16GB is lunacy when that card is more like a 50 series card historically by how much it has been cut down vs the flagship. 50 series card was like $150 until fucking ether allowed the wholly unimpressive RTX 3050 to go for a $300 MSRP.

Just getting started imo. This is why NVIDIA is the AI game right now. Them and Tiawan semi are tied at the hip

[Nbadan]

48 minutes to place your bets.

Pump or dump?

[Nbadan]

23 minutes and nice big pump. Still hitting the 470/472 ceiling.

Otm option prices falling

[Nbadan]

Here we go. Market savior or savage? We are about to find out

[DeadlyDynasty]

Dump!

[Nbadan]

https://www.youtube.com/live/FEQzpW0Kq14?si=Uc9oosx7elYi9KOJ

[Nbadan]

9 minutes ...after hour market volume is crazy

[baseline bum]

Just getting started imo. This is why NVIDIA is the AI game right now. Them and Tiawan semi are tied at the hip

TSMC makes all the cutting edge chips. They're so far ahead of Intel and Samsung fabs. And they're way bigger than just Nvidia's suppliers. Apple depends on them. AMD is an enormous buyer from them too. TSMC is the main reason we'd be in a shooting war tomorrow if China ever made a real move on Taiwan. Would cost American billionaires a lot of money and would be national security nightmare having a fab so far ahead of everyone else in China's hands.

[Nbadan]

Again...I expect earnings to be good...its forward guidance where they may see issues...we will see soon

[DeadlyDynasty]

Holy shit NVDA just exploded in the last 2 minutes!

[Nbadan]

Beat on earnings...stock over 500

Now let's see about forward guidance

[Nbadan]

Holy shit NVDA just exploded in the last 2 minutes!

Remember that TESLA exploded like $30 with a nice earning report, but then crashed in the next day opening after forward guidance was just a little negative

[Nbadan]

Well...450 reached..now what?

NVDIA has legs to run. At some point this band is gonna pop and back up to above 500...oversold in short term .

[Nbadan]

TSMC is the main reason we'd be in a shooting war tomorrow if China ever made a real move on Taiwan.

Taiwan semi makes chips for all the big players including NVDIA and Apple.....why invade Taiwan when a blockade would make more sense for China?

NVDIA is the leader in advanced AI server technology and there is nobody even close. AMD is a full 2 or 3 years behind.

I think NVDIA is well worth $600 in the right market conditions and as long as inflation continues to abate, I can see it going to that price fast

[Nbadan]

Nvidia’s stock closes at record after Google AI partnership


Nvidia shares jumped 4.2% Tuesday to close at a record.
The company announced a partnership with Google that will involve its technology being sold through Google’s cloud.
Last week, Nvidia said quarterly revenue doubled from a year earlier.

[Nbadan]

Nvidia is a classic ‘picks and shovels’ play—a company that sells the tools for an industry trend and is therefore positioned to win no matter who comes out on top.

However, the ‘picks and shovels’ theory only works so long as customers keep lining up to try their luck. Independent analyst Richard Windsor, who publishes Radio Free Mobile, has argued generative AI services such as ChatGPT have set an unsustainable benchmark price of around $20 a month for their services.


“Freely available models from the open-source community, combined with start-ups who need to get volume for their newly launched services, are going to start eroding the price of the services,” Windsor wrote. He expects the price for AI services to settle at more like $20 a year.

If that happens, customers might tire of paying Nvidia’s prices. Raymond James estimates it costs Nvidia $3,320 to make its cutting-edge H100 chip, which is sold to customers for $25,000 to $30,000.

Analysts at Deutsche Bank said after Nvidia’s earnings that they expect data-center customers to slow their rate of chip buying to ‘digest’ their purchases at some point. They kept a Hold rating on the stock after the earnings, and recommended waiting for a more favorable entry point.

[Nbadan]

Nvidia took care to dispel concerns that an unsustainable surge in Chinese demand was powering its growth. The company noted its proportion of revenue coming from China was within its historical average of 20%-25% and said even further restrictions wouldn’t have an immediate material effect on its results.

But that doesn’t mean there aren’t longer term risks.

“Over the long term, restrictions prohibiting the sale of our data center GPUs to China, if implemented, will result in a permanent loss of an opportunity for the U.S.,” Nvidia’s Chief Financial Officer Colette Kress told analysts on an earnings call.

It’s not only geopolitics that poses a risk to Nvidia’s business in China. The company’s second-quarter automotive revenue fell 15% from the previous quarter, largely due to lower demand in China.

[Nbadan]

Nvidia has a dominant position in sales of graphics-processing units for AI related purposes, with around a 90% share of the market.

However, that’s not guaranteed to be the case forever. Advanced Micro Devices (AMD) is launching its MI300 data-center GPU this year and could take advantage of constraints in Nvidia’s supply chain to grab some market share.

Some of Nvidia’s own customers are also shaping up to be its competition. Alphabet GOOGL +2.72% ’s (GOOGL) Google has its custom Tensor Processing Units, or TPUs, although it also partners with Nvidia for various AI applications. Amazon.com AMZN +1.33% (AMZN) also has custom chips which it also offers as alternatives to Nvidia’s GPUs.

None of this means that Nvidia is guaranteed to go down from here. Its rapid growth has kept worries about its high valuation in check and it has developed a formidable competitive position based on both its hardware and its software offering. So far, it has defied all of the concerns cited.

[Nbadan]

This summer, AMD’s CEO, Lisu Su, announced the company is up for the challenge of competing against Nvidia for AI chip market share. AMD is knee-deep in developing its own GPU and software that’s optimized for AI training and operation, and it hopes to begin commercial production of these chips by year’s end.

Nvidia undeniably is in the lead, but enterprises, governments, and cloud hyper scalers like Microsoft and Alphabet will likely be unwilling to hitch their wagon to just one supplier. If AMD can deliver a solution that’s even remotely close to the performance of Nvidia’s H100 chip, it’s likely to win its fair share of business.

That could be more needle-moving for AMD’s shares than investors anticipate. While Nvidia’s shares have rocketed higher this summer, AMD’s shares have retreated, making it a potential AI bargain.

Currently, AMD trades at 48 times expected 2023 earnings per share. That’s pricey, but Wall Street predicts earnings will swell by over 60% next year to $3.53 per share, resulting in a forward P/E ratio below 30.

Earnings estimates could prove too timid if AMD can deliver its chips on schedule. The market opportunity is massive, and upside revisions could mean AMD’s shares are an even bigger bargain than they appear now.

Last quarter, Lisu Su put the opportunity in perspective, saying that customer interest in the MI 250 and MI 300 is “very high,” and AI engagements increased by 7x from the previous quarter.

There should be plenty of money to go around in this space. J.P. Morgan analyst Harlan Sur estimates the AI market opportunity to be $150 billion.

"Longer-term, it is clear that AI represents a multi-billion-dollar opportunity for AMD," said Su on AMD's quarterly conference call.

Aggressive investors may not want to wait for that opportunity to be realized before buying shares.

[Nbadan]

Analysts’ average 12-month price target of $631.8 implies a further upside potential of 37.22% from current levels. Despite the concerns around growth and competition, analysts maintain a bullish outlook.

With 38 Buy and one Hold recommendations, Nvidia stock has a Strong Buy consensus rating on TipRanks.

[Nbadan]

Despite their $30,000+ price, Nvidia's H100 GPUs are a hot commodity -- to the point where they are typically back-ordered. Earlier this year, Google Cloud announced the private preview launch of its H100-powered A3 GPU virtual machines, which combines Nvidia's chips with Google's custom-designed 200 Gpbs Infrastructure Processing Units (IPUs). Now, at its Cloud Next conference, Google announced that it will launch the A3 into general availability next month.

We'll have to see if Google Cloud will be able to keep up with demand for these chips, given that their focus is on training and serving generative AI models and large language models.

When it announced the A3 last year, Google Cloud said that it would offer up to 26 exaflops of AI performance and, thanks in part to the custom IPUs, up to 10x more network bandwidth compared to the previous-generation A2 machines.

"A3 is really purpose-built to train, tune and serve incredibly demanding and scalable generative AI workloads and large language models," Mark Lohmeyer, the VP and GM for computer and ML infrastructure at Google Cloud, said during a press conference ahead of today's announcement. "It leverages a number of unique Google innovations including Google networking technologies such as their infrastructure processing and offloads, that help support the massive scale and performance that these workloads require."

[Nbadan]

VMware and NVIDIA Unlock Generative AI for Enterprises
New VMware Private AI Foundation With NVIDIA Enables Enterprises to Ready Their Businesses for Generative AI; Platform to Further Support Data Privacy, Security and Control


VMware Explore—VMware Inc. (NYSE: VMW) and NVIDIA (NASDAQ: NVDA) today announced the expansion of their strategic partnership to ready the hundreds of thousands of enterprises that run on VMware’s cloud infrastructure for the era of generative AI.

VMware Private AI Foundation with NVIDIA will enable enterprises to customize models and run generative AI applications, including intelligent chatbots, assistants, search and summarization. The platform will be a fully integrated solution featuring generative AI software and accelerated computing from NVIDIA, built on VMware Cloud Foundation and optimized for AI.

“Generative AI and multi-cloud are the perfect match,” said Raghu Raghuram, CEO, VMware. “Customer data is everywhere — in their data centers, at the edge, and in their clouds. Together with NVIDIA, we’ll empower enterprises to run their generative AI workloads adjacent to their data with confidence while addressing their corporate data privacy, security and control concerns.”

“Enterprises everywhere are racing to integrate generative AI into their businesses,” said Jensen Huang, founder and CEO, NVIDIA. “Our expanded collaboration with VMware will offer hundreds of thousands of customers — across financial services, healthcare, manufacturing and more — the full-stack software and computing they need to unlock the potential of generative AI using custom applications built with their own data.”

[Nbadan]

UK clears Broadcom buying VMware, but deal yet to scale Great Regulatory Wall of China

Middle Kingdom has made a habit of scuppering western mergers of late


After all the drama, the UK's competition regulator has given chipmaker Broadcom its unconditional blessing to acquire VMware. However, the merger can still not be considered done and dusted as it faces a potential roadblock from China.

The Competition and Markets Authority (CMA) announced on Monday that it has cleared Broadcom's proposed $69 billion purchase of cloud and virtualization specialist VMware, saying it considered the evidence and found no competition concerns.

Broadcom's buy was given a provisional go-ahead in July following the CMA's earlier decision in March that the deal warranted an in-depth investigation. This was off the back of the Phase 1 investigation, which raised concerns the merger might stifle innovation and allow Broadcom to limit VMWare's compatibility with rival networking products.

The CMA said the independent panel that conducted the Phase 2 inquiry was of the opinion that any potential financial benefit to Broadcom and VMware of making rival products work less well with VMware's software would not offset the potential financial cost in terms of lost business.

[Nbadan]

Broadcom's $69 Billion Acquisition of VMware Approved by UK Regulators
Story by Mack Wilowski •


U.K. regulators gave the green light for Broadcom's (AVGO) $69 billion purchase of VMware (VMW) on Monday, sending shares of both companies higher in early trading.

The U.K.'s Competition and Markets Authority (CMA) on Monday cleared Broadcom's $69 billion acquisition of VMware.
The deal, first announced in May of last year and initially valued at $61 billion, cleared one of its biggest regulatory hurdles this week.
The merger could help speed up Broadcom's adoption of cloud computing technologies, while giving VMware the resources to fund R&D projects.

The U.K.'s Competition and Markets Authority (CMA) on Monday cleared Broadcom's $69 billion acquisition of Palo Alto, CA-based cloud computing company VMware, concluding a two-phase investigation that began in March. An independent panel of regulators ruled that the merger would not stifle competition in the supply of server hardware components in the U.K.

Futures Fundamentals
The deal, first announced in May of last year and initially valued at $61 billion, cleared one of its biggest regulatory hurdles this week. Regulators in the European Union (EU), Australia, Canada, Brazil, Israel, South Africa, and Taiwan have already cleared the deal, with the U.S. and China now the last remaining hurdles.

A merger with VMware would enable Broadcom, one of the world's biggest semiconductor companies by revenue, to accelerate its adoption of cloud technologies, while giving the former the financial resources and capabilities to fund its research and development (R&D) ambitions. Broadcom's roughly $350 billion market cap is five times that of VMware's $70 billion capitalization.

Broadcom shares rose more than 2% in early trading Monday, while those of VMware leaped over 4%. Shares of the former are up close to 50% year-to-date, while those of the latter have gained 26% over the same period.

[Nbadan]

VMware is a leading provider of multi-cloud services for all apps, enabling digital innovation with enterprise control. As a trusted foundation to accelerate innovation, VMware software gives businesses the flexibility and choice they need to build the future. Headquartered in Palo Alto, California, VMware is committed to building a better future through the company's 2030 Agenda.

VMware, Aria, Contexa, NSX, and Carbon Black are registered trademarks or trademarks of VMware, Inc. or its subsidiaries in the United States and other jurisdictions. For more information, please visit www.vmware.com/company.

[Nbadan]

https://www.youtube.com/watch?v=QhAKpwBEDoI

[Nbadan]

VMware's annual revenue is $12.9B. Zippia's data science team found the following key financial metrics about VMware after extensive research and analysis.


VMware's revenue growth from 2006 to 2021 is 869.29%.

VMware has 31,000 employees, and the revenue per employee ratio is $414,548.

VMware's peak quarterly revenue was $3.5B in 2021(q4).

VMware peak revenue was $12.9B in 2021.

VMware annual revenue for 2020 was 10.8B, 0.0% growth from 2019.

VMware annual revenue for 2021 was 12.9B, 18.87% growth from 2020.

[Nbadan]

Nvidia's forward PE ratio tumbles to lowest in eight months


At that price, Nvidia shares are trading at the equivalent of around 33 times expected earnings over the next 12 months, according to Refinitiv data. That forward PE compares to over 46 a week ago, and it is now at its lowest since December 2022.

In its report last week, Nvidia, with a stock market value of $1.14 trillion, also said it would buy back $25 billion of its shares, suggesting chief executive Jensen Huang views them as undervalued, even after gaining 220% year to date.

Following its report, analysts on average expect Nvidia's revenue for the fiscal year ending in January 2024 to reach $53 billion, nearly double the previous year, according to Refinitiv data. The company's net income is seen quintupling to over $22 billion in the same fiscal year before reaching $35 billion the following year.

https://www.msn.com/en-gb/money/other/nvidias-forward-pe-ratio-tumbles-to-lowest-in-eight-months/ar-AA1fWgZ1

[Winehole23]

Way back in the tall weeds of financial reporting, but some people think $NVDA is cooking the books.

1696215247059616052

[Winehole23]

1698000898730164687

[Nbadan]

Way back in the tall weeds of financial reporting, but some people think $NVDA is cooking the books.

1696215247059616052

I've heard these accusations and so far the only real thing I can find is an accounting trick some companies use to record sales before they have actually happened, but there is no way to tell until the next quarter... i do know that hedge funds are head deep into technology stocks right now, overbought according to some sources I have spoken to. If you look at the price action of some of the big 8 last week, both Tesla and Apple seen over bought at current price and could be headed for a pullback.

That said, I sure would not be shorting NVDIA.....Tom Lee says September could be a big month

[Nbadan]

In fact, the whole market seems to be primed for a 10% pullback and as investors know, September is the worst month of the market traditionally. We could see more consolidation and even stock the like SP500 move higher, but the dip is coming eventually without fresh liquidity.

[Nbadan]

JPMorgan analyst Harlan Sur noted that expectations were high, heading into the fiscal second-quarter print. Still, Nvidia delivered results and guidance that were way above estimates, thanks to the significant demand pull for the company's data center products.

The analyst expects the company's earnings power to grow by over 30% annually over the next few years, driven by continued strength in the data center segment, an incremental auto revenue pipeline of nearly $14 billion, and an incremental $1 billion to $2 billion from software, licensing and subscription revenues over the next 3 to 4 years.

Sur raised his price target to $600 from $500 and reaffirmed a buy rating on NVDA stock, saying, "The build out of generative AI and large language/transformer models are continuing to drive expanding demand for NVIDIA's accelerated compute/networking platforms and software solutions."

[Nbadan]

Where is NVDIA going and why is it dropping......NvDIA has a lot of shorts right now who think that the company is cooking the books...there is no proof that i have seen of NvDIA wrongdoing but sometimes the market moves on rumor and not on fact. That seems to be the case here.

[Nbadan]

There are bulls keeping NVidia propped up between 465 and 460, if these bulls lose the battle, which I think they will.....NVDIa could head to between 400 and 420....

[Nbadan]

There isn't any consensus among the analyst I have seen as far as how low Nvdia could go...some say 430, some 420 some 400....I think we will have a better idea next week as far as inflation in the economy....

[Nbadan]

....but sometime next week, or the week after, we are going to be presented with an excellent buy the dip opportunity and a chance to swing some call spreads if you like options

[Nbadan]

Hope everyone has made some money shorting NVDIA....we hit the first price prediction on 430 yesterday, but i don't think NVIDIA is done dropping. The price action showed support at midday so we could see another dead cat bounce in the next 2 days. Does not matter, the overall trend now is bearish in the markets and NVDIA could easily go to 400 or lower before any type of real swing.

The overall market is weak and even though its still moving along market fundamentals...just no buyers

[Nbadan]

To forecast Nvidia’s success, it’s therefore helpful to think about companies like Microsoft Corp. and Alphabet Inc.’s Google that are buying up Nvidia’s AI gear and paying to access it through cloud services. Will these companies successfully develop next-generation software and services that will generate revenue gains for themselves, and more importantly, when will that happen?

For Nvidia to follow Apple’s example, those customers will need to succeed with their new offerings no more than a couple of years down the road. Nvidia executives have not provided financial guidance more than a quarter ahead, but analysts have suggested this wave of investment is unlikely to continue beyond that without such a surge from other tech companies.

“While gauging the magnitude and trajectory of capacity additions and AI demand may be foolish to predict, we suspect that we likely have another 12 – 18 months+ of unbridled AI infrastructure build-out, but things look murkier beyond that,” Bernstein analysts wrote in late July, while looking at other historical comparisons for Nvidia’s success.

[Nbadan]

VIDIA and SoftBank Group Corp. (SBG) today announced a definitive agreement under which NVIDIA will acquire Arm Limited from SBG and the SoftBank Vision Fund (together, “SoftBank”) in a transaction valued at $40 billion. The transaction is expected to be immediately accretive to NVIDIA’s non-GAAP gross margin and non-GAAP earnings per share.

The combination brings together NVIDIA’s leading AI computing platform with Arm’s vast ecosystem to create the premier computing company for the age of artificial intelligence, accelerating innovation while expanding into large, high-growth markets. SoftBank will remain committed to Arm’s long-term success through its ownership stake in NVIDIA, expected to be under 10 percent.

“AI is the most powerful technology force of our time and has launched a new wave of computing,” said Jensen Huang, founder and CEO of NVIDIA. “In the years ahead, trillions of computers running AI will create a new internet-of-things that is thousands of times larger than today’s internet-of-people. Our combination will create a company fabulously positioned for the age of AI.

“Simon Segars and his team at Arm have built an extraordinary company that is contributing to nearly every technology market in the world. Uniting NVIDIA’s AI computing capabilities with the vast ecosystem of Arm’s CPU, we can advance computing from the cloud, smartphones, PCs, self-driving cars and robotics, to edge IoT, and expand AI computing to every corner of the globe.

“This combination has tremendous benefits for both companies, our customers, and the industry. For Arm’s ecosystem, the combination will turbocharge Arm’s R&D capacity and expand its IP portfolio with NVIDIA’s world-leading GPU and AI technology.

“Arm will remain headquartered in Cambridge. We will expand on this great site and build a world-class AI research facility, supporting developments in healthcare, life sciences, robotics, self-driving cars and other fields. And, to attract researchers and scientists from the U.K. and around the world to conduct groundbreaking work, NVIDIA will build a state-of-the-art AI supercomputer, powered by Arm CPUs. Arm Cambridge will be a world-class technology center.”

[Nbadan]

The key question is the longevity of AI-driven demand. Nvidia experienced demand and subsequent decline in GPU mining for cryptocurrencies.

AI appears more enduring, but it’s uncertain how many data centers are needed. Once a company builds an AI-powered data center, will it build more?

The answers are elusive because the full impact of AI on businesses remains uncertain. While it could be transformative, some customers may be content with their existing supercomputing infrastructure.

The timeline for AI demand’s sustainability remains uncertain. While caution is warranted, don’t underestimate the potential for a paradigm shift.

For investors, prudence is key. Nvidia’s future revenue trajectory post-initial AI demand is uncertain. Diversify your portfolio to manage risk and capture potential gains. It’s wise to secure profits while preserving the upside.

Nvidia’s market role is intriguing, but requires vigilant monitoring because of its unpredictability.

[koriwhat]

LOL Looks like a bouts thread(s).

[Cry Havoc]

Hope everyone has made some money shorting NVDIA....we hit the first price prediction on 430 yesterday, but i don't think NVIDIA is done dropping. The price action showed support at midday so we could see another dead cat bounce in the next 2 days. Does not matter, the overall trend now is bearish in the markets and NVDIA could easily go to 400 or lower before any type of real swing.

The overall market is weak and even though its still moving along market fundamentals...just no buyers

Every single person who's in the industry saw this coming when Nvidia priced their entry level GPU at $500.

[Winehole23]

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