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Here we go. Market savior or savage? We are about to find out
23 minutes and nice big pump. Still hitting the 470/472 ceiling.
Otm option prices falling
Last edited by Nbadan; 08-23-2023 at 02:55 PM.
Here we go. Market savior or savage? We are about to find out
Dump!
9 minutes ...after hour market volume is crazy
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.
Again...I expect earnings to be good...its forward guidance where they may see issues...we will see soon
Holy NVDA just exploded in the last 2 minutes!
Beat on earnings...stock over 500
Now let's see about forward guidance
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
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 .
Last edited by Nbadan; 08-25-2023 at 12:18 PM.
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?TSMC is the main reason we'd be in a shooting war tomorrow if China ever made a real move on Taiwan.
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
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.
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.
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.
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 compe ion. 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 compe ive position based on both its hardware and its software offering. So far, it has defied all of the concerns cited.
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.
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 compe ion, analysts maintain a bullish outlook.
With 38 Buy and one Hold recommendations, Nvidia stock has a Strong Buy consensus rating on TipRanks.
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."
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.”
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 compe ion 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 Compe ion 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 compe ion 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.
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 Compe ion 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 Compe ion 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 compe ion 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.
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.
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.
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