Dominating Market Share in AI Semiconductors! NVIDIA's (NVIDIA) Future Prospects and Future Stock Outlook Based on Financial Results

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This is only a record of my personal analysis and the contents may contain errors or information that differs from the actual situation. Please understand in advance when viewing this site.

Introduction.

The evolution of AI technology, especially advanced systems such as ChatGPT, has further increased the importance of the underlying technology.
This is driven by the need for ultra-high-performance semiconductors, an area in which NVIDIA has received particular attention.

NVIDIA's performance has been phenomenal, surpassing $1 trillion in market capitalization in 2023, and then in just one year, surpassing $3 trillion, making it the world's top company by market capitalization.

Along with GAFAM (Google, Apple, Facebook, Amazon, and Microsoft), NVIDIA has made its presence felt as one of the "Magnificent Seven". In particular, the company is recognized for its technological innovations in areas as diverse as AI, data centers, and self-driving technology.

This article delves into NVIDIA's corporate profile, technical aspects, financials, market position, and future prospects.
We analyze the factors behind NVIDIA's innovation, its competitiveness in the marketplace, and its financial health from multiple perspectives.

What kind of company is NVIDIA?

NVIDIA(NVIDIA Corporation) is an American multinational technology company known primarily for the design and manufacture of graphics processor units (GPUs).

About Us

• Year of establishment: 1993
• Founders: Jensen Huang, Chris Malakowski, Curtis Preem
• Headquarters: Santa Clara, California

Market Positioning

NVIDIA is a pioneer in the GPU marketand has established itself as a leader.

In particular, the company leads the industry in innovation in the areas of gaming, professional graphics, data centers, AI, and self-driving cars.

Innovation and Impact

NVIDIA's technology has had a major impact on the evolution of computer graphics,The company is accelerating research and practical applications in the fields of AI and deep learning.

The technology also plays an important role in the development of self-driving cars.

What is a GPU and how does it differ from a CPU?

To summarize in simple terms the role of the GPU (graphics processing unit) in AI (artificial intelligence) and how it differs from the CPU (central processing unit),

Role of GPUs

GPUs were originally developed for advanced graphics processing in video games, but their ability to simultaneously process large amounts of data in parallel has come in handy in the field of AI.

AI requires processing large amounts of data at high speed and learning patterns, especially in the learning process known as deep learning. GPUs are good at processing this large amount of data simultaneously, significantly reducing AI learning time.

Difference from CPU

CPUs, as the "brains" of computers, are well suited for processing various types of tasks one at a time or a small number of them in parallel. In contrast, GPUs specialize in performing very large numbers of simple calculations simultaneously.

To summarize in a table,

In other words, the role of GPUs in AI is to process large amounts of data in parallel at high speed, making the AI learning process more efficient. This differs from the CPU's one-by-one approach, which is particularly effective for data-intensive tasks such as AI.

What is the relationship between the behavior of AI (artificial intelligence) and GPUs?

The operation of artificial intelligence (AI) can be largely divided into two phases: learning and inference.

Learning: (1)During the learning phase, the AI model learns how to perform a specific task using large amounts of data. This process usually requires fast computational resources such as GPUs and often involves complex algorithms such as deep learning.

Inference: TheLearned AI models make predictions and decisions on new data. Inference requires less computational resources than learning and is important in applications that require real-time response. CPUs and specialized AI inference chips may be used in this phase.

NVIDIA GPUs are also highly efficient in the inference process, which is particularly useful for AI behaviors and tasks that require real-time response.

What's so great about NVIDIA?

NVIDIA (NVIDIA) is attracting attention because of its innovative technology and market influence.

Widely recognized as a leader in the evolution of computer graphics and an innovator of GPU technology, NVIDIA is highly regarded within the industry for its high-resolution and real-time game play.
Further,In the areas of AI and deep learning, the company has made significant contributions to data processing power and learning efficiency, and holds a nearly dominant and monopolistic position in the AI market.

According to the latest information, NVIDIA has further strengthened its leadership position in the AI chip market, with its latest Blackwell architecture significantly outperforming the previous generation in processing generative AI and large-scale language models (LLMs).

NVIDIA'sBusiness for data centers has grown markedly year over year,This suggests that the company's technology in the areas of AI and high-performance computing (HPC) is becoming even more important.

NVIDIA's GPUs serve as the core of accelerated computing, influencing not only the field of AI, but also a wide variety of core areas of future innovation, including automated driving.

CEO Jensen Huang continues to announce the latest breakthroughs in areas such as accelerated computing, generative AI, and robotics, which are all highly promising for NVIDIA's future growth.

These developments show that NVIDIA is more than just a hardware manufacturer and continues to lead the industry at the forefront of technological innovation.

What are NVIDIA's main businesses?

NVIDIA's (NVIDIA) main business activities are as follows

Development and sales of graphics processor units (GPUs)

• GeForce" series GPUs for the gaming market.
• RTX A Series" GPUs (formerly "Quadro" series) for the professional graphics market.
• A100 and H100 for the high-performance computing (HPC) market, and the latest Blackwell series GPUs.

Data Centers and Cloud Computing

• High-performance computing platform for AI, deep learning, and big data analytics.
• GPUs and related solutions for cloud service providers.

Self-driving cars and AI technology

• AI platforms and software required for the development of self-driving cars.
• NVIDIA DRIVE, an in-vehicle computer system.

AI and Deep Learning R&D

• Development of AI algorithms and models.
• Platform for deep learning training and inference.

Application of Technology to Other Fields

• Applications of AI and GPU technology in diverse industries, including healthcare, manufacturing, and finance.

Through these businesses, NVIDIA is making a significant impact in areas such as graphics processing, AI, data centers, and automated driving technology.

What is the "H100" that is the focus of attention in NVIDIA's products?

What is NVIDIA's NVIDIA H100 Tensor Core GPU?State-of-the-art GPUs designed for high-performance computing (HPC) and artificial intelligence (AI) applicationsThe following is a list of the most common problems with the "C" in the "C" column.

This product is part of NVIDIA's GPU product line for data centers, which offers high performance, especially in deep learning, machine learning, and large-scale data processing.

Key Features and Benefits of the H100

• The H100 is based on NVIDIA's latest GPU architecture, Hopper. This architecture offers significant performance improvements over the previous "Ampere" architecture.
• The H100 has advanced capabilities for AI training and inference, especially in deep learning model training, providing faster throughput than previous models.
• It is optimized for applications that handle large amounts of data, such as big data analysis and scientific calculations, and can process complex calculations at high speed.
• While maintaining higher computing performance, it also improves energy efficiency, reduces data center operating costs, and enables environmentally friendly operations.
• The H100 is expected to find applications in diverse fields, including healthcare, finance, self-driving cars, and climate change research.

NVIDIA's H100 is a key product that will shape the future of data centers and AI applications, and is expected to accelerate technological evolution in many industries with its high performance and innovative features.

How much does the H100 cost?

The price of the NVIDIA H100 Tensor Core GPU is extremely high.

According to CNBC, prices for the "H100" on eBay range from $39,995 to $46,000.

Calculated at 140 yen to the dollar, this would be approximately 5.6 to 6.45 million.

How much "H100" is used by AI companies?

• Tesla:The company is investing in a compute cluster using 10,000 NVIDIA H100 GPUs.
• OpenAI:Up to 50,000 NVIDIA H100 accelerators are needed to train the latest GPT-5 and other AI models.
• Voltage Park: Voltage ParkThe start-up company received 24,000 NVIDIA H100 GPUs, which are distributed across multiple data centers.
• Google:Google Cloud uses NVIDIA H100 GPUs for its next generation A3 GPU supercomputers. It is dedicated to training and inference of machine learning models.

Companies that are actively using AI are found to be using NVIDIA's H100 GPUs in large numbers.

How great is the NVIDIA HGX H200?

On November 13, 2023, NVIDIA (NVIDIA) announced its latest server GPU, the NVIDIA HGX H200.

The H200 is designed to meet cutting-edge needs in the areas of AI and high-performance computing (HPC),Doubled inference speed compared to the previous generation "H100The company is doing so.

Also,An astounding 110 times better HPC performance than conventional x86 CPUsDo.

The H200 is particularly suited for training and deploying AI models, and is expected to be used in large data centers and research facilities, supporting advanced memory management and high-speed communication between GPUs to handle complex AI computation and data processing tasks.

What is "Blackwell" that is the focus of attention in NVIDIA's products?

On March 18, 2024, NVIDIA (NVIDIA) announced its latest GPU for servers.Blackwell (Blackwell) is a significant evolution of the previous generation Hopper architecture, with enhanced capabilities for efficient training and inference, especially for large language models (LLMs).

Blackwell's main features and technologies include

• Transformer Engine:.It is equipped with a second-generation transformer engine that, among other things, supports 4-bit floating-point AI inference capability. This significantly improves the computational speed and efficiency of AI models.
• High-performance chips:.Blackwell GPUs have 208 billion transistors and are manufactured on TSMC's 4NP process. This is 25 times more cost and energy efficient than the previous generation.
• NVLink 5:.The new NVLink 5 provides 1.8 TB/s throughput in both directions and allows up to 72 GPUs to work together as a single GPU. This improves communication efficiency for large AI models.
• RAS engineDedicated engine for reliability, availability, and maintainability to maximize uptime for large AI deployments.
• Deep Learning Efficiency:.Support for new FP4 and FP6 numerical formats to further increase the efficiency of AI inference.
• Generative AI Supercomputers:.NVIDIA DGX SuperPOD is designed to efficiently process trillion-parameter-scale generative AI models using the Blackwell architecture.

Blackwell is specifically designed for AI and high-performance computing (HPC), and its powerful computing power and efficient energy use are expected to find applications in a variety of industries.

Click here for a comparison chart of Blackwell, H200, and H100.

This comparison shows that Blackwell achieves a significant performance improvement over H200 and H100.

supplementary explanation

• Architecture:. While both the H200 and H100 are based on the Hopper architecture, the Blackwell B200 uses the next-generation Blackwell architecture.
• Reasoning speedThe Blackwell B200 is about four times faster than the H100 in inference speed and is especially focused on AI and generative AI.
• HPC PerformanceThe H200 offers 110 times the performance of an x86 CPU, while the Blackwell B200 offers twice the HPC performance of the H100.
• GPU memory: 1The Blackwell B200 has 192 GB of memory, which is more than the H200 and H100.
• GPU memory bandwidth: 1.5 GB/sec.Blackwell B200 has a memory bandwidth of 16 TB/s, significantly higher than H200 and H100.
• Maximum thermal design power (TDP)Blackwell B200, with a maximum TDP of 1200W, requires higher power consumption than H200 and H100, but offers higher performance to match.
• HBM memory type: HBMBoth the Blackwell B200 and H200 use the latest HBM3e memory, while the H100 uses HBM2e memory.

What is NVIDIA's dividend?

• The dividend yield in 2024 is 0.021 TP3T
• Dividend payout ratio (latest 12 months) 1.34%
  *Indicates that 1.341 TP3T of the company's profit is paid to shareholders as dividends.
• Dividends are paid quarterly (March, June, September and December)
• Announced dividend increase in Q1 2024 financial results: $0.04 to $0.10, a 150% increase.

What are NVIDIA's sectors, industries, and themes to which it belongs?

sector

• NVIDIA is classified in the technology sector.

type of industry

• NVIDIA is part of the semiconductor industry and focuses primarily on the design and manufacture of graphics processing units (GPUs).

Themes belonging to

• Artificial Intelligence (AI)
• gaming
• data center
• self-driving car
• Virtual Reality (VR)/Augmented Reality (AR)

Who are NVIDIA's competitors?

• AMD (Advanced Micro Devices) [AMD
  • It competes with NVIDIA in the areas of graphics processor units (GPUs) and central processing units (CPUs).
  • Competition in the GPU market for gaming and data centers is particularly fierce.
• Intel (Intel Corporation) [INTC].
  • They compete mainly in the CPU market, but are also expanding into the GPU market.
  • We have a competitive relationship with NVIDIA in the data center and AI computing markets.
• Qualcomm (QCOM)
  • Competing in GPUs and processors for mobile devices.
  • There is competition, especially in the smartphone and tablet markets.
• Apple (Apple Inc.) [AAPL
  • Competes in the personal computer market with its own M-series chips (M1, M2, etc.).
  • In terms of GPU performance, the company is competing with NVIDIA in an increasing number of situations.
• ARM Holdings [ARM] (Japan)
  • ARM-based processor technology, competing especially in the mobile device and embedded systems markets.
  • NVIDIA attempted to acquire ARM, but gave up due to regulatory issues.

What are NVIDIA's differentiators and advantages over the competition?

NVIDIA (NVIDIA) has several key differentiators and advantages over its competitors.

GPU Technology Leadership

NVIDIA is a technology leader in the GPU market, providing high-performance graphics processing technology. This isClear differentiators from competitors in the gaming, professional graphics, and data center marketsThe first is the "A" in the "A" column.

Strong focus on AI and deep learning

NVIDIA is a pioneer in the fields of AI and deep learning, and is a leader in the use of theseFar ahead of competitors in GPU developmentIn particular, the market is almost exclusively used for AI applications in data centers and cloud computing.

CUDA Platform

CUDA (Compute Unified Device Architecture) is a programming model developed by NVIDIA that enables parallel computing using GPUs. This platform is,Designed to help developers get the most out of NVIDIA GPUs, a unique advantage over competitorsThe first is the "A" in the "A" column.

Wide range of product lineup

NVIDIA has a broad product lineup, from personal gaming GPUs to professional-grade data center GPUs, and has the flexibility to meet diverse market needs.

Ecosystems and Partnerships

NVIDIA has established strong partnerships with software developers, hardware manufacturers, and research institutions, which has led to widespread adoption of NVIDIA's technology and facilitated the growth of the entire ecosystem.

These factors are some of the reasons why NVIDIA has an advantage and a competitive edge over its competitors.
Particularly,Strengths in the fields of AI and deep learning will play an important role in the future evolution of technologyIt is believed that

Comparison of NVIDIA's performance with competing semiconductor manufacturers

Comparison of NVIDIA's Q2 2023 quarterly results with its contemporaneously timed competitors.

High sales

NVIDIA's sales of $13,507 million were about 2.3 times higher than AMD's $5,800 million and about the same as Intel's $14,158 million.
This indicates that NVIDIA has a high market share and equal or greater market influence than its competitors.

Size of Operating Profit

NVIDIA's operating profit was $6.8 million, which is very high compared to Intel's -$8 million (loss) and AMD's $224 million.
This indicates that NVIDIA's business is very profitable, with efficient management and high margins.

High ratio of operating income to net sales

NVIDIA's operating margin on sales is 50.341 TP3T, which is very high compared to Intel's -0.061 TP3T and AMD's 3.861 TP3T.
This indicates that NVIDIA is generating high profits relative to sales, which means that it is financially very healthy.

High EPS (earnings per share)

NVIDIA's EPS is $2.7, which is higher than Intel's $0.41 and AMD's $0.7. This is attractive to shareholders and indicates that NVIDIA's stock is valuable to investors.

From these data,NVIDIA is in a very strong position financially and is highly profitable and efficient compared to its competitorsIt can be seen that

Particularly,High operating income and operating margin suggest that NVIDIA has a strong competitive position in the market and will likely continue to growDo.

Current share price of NVIDIA

Stock price chart of NVIDIA (TradingView).

The chart shows the Relative Strength Index (RSI). Reference as an indicator of market overheating.

*An overbought indicator when the RSI exceeds 70% to 80%, and conversely, an oversold indicator when the RSI falls below 20% to 30%.

NVIDIA's Financial Results

First, we will review the following four indicators to perform a minimum performance analysis of NVIDIA (NVDA).

1. Sales: An indicator of a company's performance and growth.
2. Operating Cash Flow and Operating Cash Flow Margin: Indicators that look at how much cash a company generates from its services. The margin is considered excellent when the ratio is 15%.
3. Operating Profit: Profit earned by a company from its core business. An indicator to evaluate a company's performance.
4. EPS: An indicator that looks at a company's earning power "profitability" and "growth potential" in terms of net income per share. The higher the number, the higher the earning power.

Each data is,Investing.com, ,TradingViewSee from

NVIDIA Quarterly: Sales Trends

Quarterly sales forecasts and actual sales and year-on-year changes.

Sales forecasts and actual results are shown in graphs.

NVIDIA Quarterly: Operating Cash Flow Trends

Quarterly operating cash flow and operating cash flow margin.

Generally, an operating cash flow margin of 15% is considered excellent.

Each transition is shown in the graph below.

NVIDIA Quarterly: Operating Income and Operating Margin Trends

Quarterly operating income and operating margin.

Each transition is shown in the graph below.

NVIDIA Quarterly: EPS Trends

Quarterly EPS forecast and actual EPS.

Each transition is shown in the graph below.

NVIDIA Full Year: Sales Trends

This is the sales forecast for the full year and actual sales and year-on-year changes.

Each transition is shown in the graph below.

NVIDIA Full Year: Operating Cash Flow Trends

Operating cash flow for the full year and operating cash flow margin.

Each transition is shown in the graph below.

NVIDIA Full Year: Operating Income and Operating Income Margin Trends

Operating income and operating margin for the full year.

Each transition is shown in the graph below.

NVIDIA Full Year: EPS Trends

This is the EPS forecast and actual EPS for the full year.

Each transition is shown in the graph below.

How is NVIDIA's stock price expected to perform in the future?

Several important factors and risks should be considered when forecasting the future development of NVIDIA's (NVIDIA) stock price.
The following is a summary of factors that may affect NVIDIA's stock price trends.

• NVIDIA is a leader in the field of GPU technology, and with rapid advances in AI and deep learning, continued innovation will likely contribute to share price growth.
• NVIDIA's financial position is very strong, showing high profitability and growth potential, and if this trend continues, the stock price could be positively impacted.
• Expansion into new markets such as self-driving cars, data centers, cloud computing, and healthcare will provide new growth opportunities for NVIDIA, and their success could have a positive impact on the stock price
• NVIDIA's competitive environment, especially with competitors such as AMD and Intel, is another important factor affecting the stock price. As competition intensifies, the stock price may come under pressure.
• Overall economic conditions and stock market sentiment also have a significant impact on stock prices, so economic slowdowns and market instability can have a negative impact on stock prices.
• Changes in government regulations and policies, especially trade policy and technology-related regulations, could affect NVIDIA's business and indirectly affect its stock price.

Considering these factors,NVIDIA's stock price could move in a positive direction due to the company's continued innovation, strong financial position, and opportunities in new marketsIt can be said.

However, it must be remembered that risk factors such as market uncertainty and increased competition must also be taken into account.

What are NVIDIA's future developments and prospects?

The future development and prospects of NVIDIA (NVIDIA) need to be viewed from multiple angles.

At this time, the following factors are possible

Evolution of AI and Deep Learning

AI and deep learning will continue to be rapidly evolving areas, and NVIDIA's GPUs will be critical to the advancement of these technologies.

In particular, NVIDIA's products will play an important role in the training and inference of AI models.

Growth of Data Centers and Cloud Computing

The expansion of the data center and cloud computing markets will provide significant growth opportunities for NVIDIA, and GPUs will contribute to more efficient data processing and computation in these areas.

Technology development for self-driving cars

As automated driving technology advances, NVIDIA's GPUs and AI platforms will become increasingly important in the development of self-driving vehicles. NVIDIA is focused on developing AI algorithms and data processing technologies for self-driving cars.

Expansion of the gaming market

Growth in the gaming market continues to be an important source of revenue for NVIDIA. Demand for high-performance gaming GPUs is increasing, especially with the growing popularity of e-sports.

Expansion into new markets

NVIDIA is looking to expand into new markets such as healthcare, manufacturing, and construction. In these areas, the application of AI and data analytics is growing, and NVIDIA's technology could play an important role.

Investment in R&D

NVIDIA is actively investing in R&D, which is expected to lead to new technological innovations. In particular, the development of energy-efficient GPUs and more advanced AI algorithms are underway.

Given these factors, we can expect NVIDIA to continue to lead the way in technological innovation and pursue growth opportunities in diverse markets.
Particularly,Advances in AI and data processing technologies are likely to have a significant impact on NVIDIA's future.

NVIDIA's Q3 2023 Financial Summary

The following is a summary of NVIDIA's third quarter financial report.

Financial Highlights

• Gross Revenue: $3,999,000Total revenue for the third quarter was $1.812 billion, up 206% YoY and 34% QoQ. Significant YoY revenue and profit growth was achieved. Resulted from strong demand, especially in the data center product line.
• Data center revenuesRevenue from data centers was a record $14.51 billion, up 41% QoQ and 279% YoY.
• Profit: (%)Earnings per share based on GAAP was $3.71, more than 12 times higher than the same period last year and 50% higher than the previous quarter. Non-GAAP earnings per share was $4.02, up nearly 6x YoY and 49% QoQ.
• Future Prospects:.Q4 revenues are expected to be $20.0 billion, with GAAP and non-GAAP gross margins of 74.51 TP3T and 75.51 TP3T, respectively.

Product and Market Trends

• Growth of GPUs for Data Centers:.Demand for H100 has grown significantly, and this accounts for a large portion of revenue; the supply of H100 has also increased, and sales are expected to increase in the future.
• New product launches:.NVIDIA HGX™ H200 and the new NVIDIA H200 Tensor Core GPUs; an enhanced version of the H100 and the next generation B100 are scheduled to hit the market in 2024. These new products are expected to further strengthen NVIDIA's position in the data center market.
• Growth by regionGrowth in the U.S. market is remarkable, but sales are increasing in other regions as well, including China and Taiwan.

NVIDIA's Q4 2023 and Annual Report Financial Summary

The following is a summary of NVIDIA's fourth quarter and full year financial report released on February 21, 2024.

• Q4 revenues: (1)$2.21 billion, an increase of 22% from the previous quarter and an increase of 265% from the same period last year.
• Revenue from Data Centers:.Q4 data center revenue was $1.84 billion, up 27% from the previous quarter and 409% from the same period last year.
• Full Year Earnings: (1) $6.09 billion, an increase of 126% from the previous year.
• Fourth-quarter GAAP earnings per share: (in millions of yen)$4.93, up 331 TP3T from the previous quarter and 7651 TP3T from the same period last year.
• GAAP earnings per share for the full year: (in millions of yen)$11.93, an increase of 5861 TP3T from the previous year.
• Future Prospects:.Revenue for the first quarter is expected to be $24.0 billion.

Financial Highlights

• Data CentersRecord Q4 data center revenue of $1.84 billion and announced optimization across NVIDIA's data center and PC AI platforms in collaboration with Google.
• Gaming: GamingQ4 gaming revenue was $2.9 billion, unchanged from the previous quarter and up 56% from the same period last year.

The report shows that NVIDIA is experiencing strong growth in both the data center and gaming segments. In particular, the strong growth in data center revenues reflects NVIDIA's strong position in the AI and high-performance computing markets.

NVIDIA's Q1 2024 Financial Summary

• Net sales 260.44 million, up 2621 TP3T from $71.92 million in the same period last year.
• Net income148.81 million, up 6,281 TP3T from $20.43 million in the same period last year.
• Earnings per share (EPS)
  • 5.98 on a GAAP basis
  • $6.12 on a non-GAAP basis

Performance by Segment

• Data Centers
  • Sales were $225.63 million, up 4271 TP3T from the same period last year.
  • The NVIDIA Hopper GPU platform is in increasing demand and is being used for training and inference of large-scale language models and AI applications.
• Gaming: Gaming
  • Sales were $264.7M, up $18% from the same period last year.
  • However, compared to the previous quarter, it decreased by 81 TP3T.
• Professional Visualization:.
  • Sales were $42.7M, an increase of 451 TP3T over the same period last year.
  • Decreased by 81 TP3T from the previous quarter.
• Automotive
  • Sales were $32.9M, an increase of 111 TP3T over the same period last year.
  • QoQ, the number increased by 171 TP3T.

Other Highlights

• Stock Split: 1 A 10-for-1 stock split is scheduled to take place on June 7, 2024. As a result, existing shareholders will receive 9 additional shares per share.
• DividendsIncreased quarterly dividend 150% from $0.04 to $0.10. Equivalent to $0.01 per share after split.
• Cash Flow: Cash flow from operating activities
  • Cash flow from operating activities was $1.53 billion, a significant increase from $290 million in the same period last year.
  • Major cash uses were stock buybacks ($770 million) and dividend payments ($98 million).

Future Outlook

• Q2 sales forecast: (1)$28 billion (±21 TP3T).
• Gross Profit Margin: 174.81 TP3T on a GAAP basis and 75.51 TP3T on a non-GAAP basis.
• Operating expenses3.95 billion on a GAAP basis and $2.8 billion on a non-GAAP basis.
• Tax Rates171 TP3T (±11 TP3T) on GAAP and non-GAAP basis.

This summary shows that NVIDIA performed very strongly in the first quarter of FY2025, especially in the data center sector. In addition, the stock split and dividend increase have increased the yield to investors.

NVIDIA's Q2 2024 Financial Summary

• Net sales: $30 billion, an increase of 1221 TP3T YoY and 151 TP3T QoQ.
• GAAP Net Income: $16.599 billion, an increase of 1681 TP3T over the same period last year.
• GAAP Earnings Per Share (EPS): $0.67, a significant increase from $0.25 in the same period last year.
• Non-GAAP Net Income: $16.952 billion, an increase of 1521 TP3T over the same period last year.
• Non-GAAP Earnings Per Share: $0.68, up from $0.27 in the same period last year.

Sales by Department

• data center: Sales were $26.3 billion, up $154% YoY, driving overall sales. Demand for the Hopper GPU computing platform was particularly strong, with increased demand from enterprises and cloud service providers.
• gaming: Sales were $2.9B, up $16% YoY. Strong sales of new GeForce RTX 40 series GPUs.
• Professional Visualization: Sales of $454M, up 20% YoY; increased demand for RTX GPU workstations.
• automobile: Sales were $346M, up $37% YoY, driven by growth in demand for AI cockpit solutions and automated driving platforms.

Business Progress

• AI and Next-Generation GPUs: Sample shipments of the new Blackwell architecture have begun, with plans to expand production in the future; demand for Hopper remains strong, and increased shipments are expected in the future.
• shareholder return: In the first half of FY 2025, returns to shareholders amounted to $15.4 billion in share repurchases and cash dividends. In addition, an additional $50 billion share repurchase facility was approved.

Future Outlook

• Third Quarter Sales Forecast: The data center sector is expected to continue to grow, with a forecast of approximately $32.5 billion.
• Gross Profit Margin Forecast: 74.41 TP3T on a GAAP basis and 75.01 TP3T on a Non-GAAP basis are projected.

NVIDIA has experienced strong growth due to increasing demand for AI and data centers, and next-generation GPUs and AI-related innovations are expected to continue to support its performance.

Which brokerage firms can I buy NVIDIA (NVDA) shares?

The following is a list of major brokerage firms that offer NVIDIA shares. At these brokerages, you can choose to invest as a CFD (Contract for Difference) in addition to direct stock trading as a foreign stock.

I myself mainly use SBI Securities, but some stocks they handle may not be available for purchase. In such cases, I sometimes use CFDs at Saxo Bank Securities or IG Securities.

summary

We have looked at NVIDIA's (NVIDIA) corporate profile, technological innovations, financial situation, market position, and future prospects.

As a pioneer in GPU technology, NVIDIA plays a key role in areas such as AI, deep learning, self-driving cars, and data centers. Its innovation and market leadership have had a significant impact on the company's stock price.

Financially, NVIDIA has shown high profitability and growth, and its operating rates have held up well compared to its competitors.
Indicators such as sales, operating income, and earnings per share (EPS) show the financial strength of the company, with operating income margins exceeding 501 TP3T from Q2 2023, and even exceeding 601 TP3T in Q4, showing an impressive rate of return.
In addition, the expansion into new markets and the wider range of applications for the technology further opens up opportunities for future growth.

As a pioneer in technological innovation, NVIDIA shares are an attractive investment for the long term, as the company will have many growth opportunities in the future.

I myself have a larger allocation to AMD than to NVIDIA stock, but I see investing in companies that play the "pickaxe and shovel" role of semiconductors as one strategy in the process of making artificial intelligence and automated driving the norm in the coming world.

Nvidia is also supported by and growing together with many related companies. We focus on stocks related to NVIDIA (U.S. stocks, Japanese stocks, and virtual currencies).

Summary of stocks related to AI semiconductor "NVIDIA" [U.S. and Japanese stocks

As a leader in AI technology, NVIDIA's success is supported by its many partners and affiliates. This article focuses on the major U.S.-listed and Japanese companies that work with NVIDIA and introduces NVIDIA-related stocks that investors should pay attention to. Because NVIDIA-related companies have the potential to grow in the future, these groups of stocks...

mifsee.com

In addition, we have compiled a list of ETFs and mutual fund issues that allow you to diversify your investments while enjoying NVIDIA's growth!ETFs in the U.S. with a high percentage of NVIDIA and mutual fundsSee below for the issues of

Summary of ETFs and mutual funds that include NVIDIA (U.S. and Japanese stocks)

NVIDIA's growth has been phenomenal, reaching a market capitalization of $1 trillion in June 2023 and then reaching $3 trillion in just one year, overtaking Microsoft to become the number one market cap company. Here we introduce some U.S. ETFs that include a high percentage of NVIDIA, as well as mutual funds that are easy to invest in in Japan.

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