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Nvidia announces financial results for second quarter fiscal 2024

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Re: Nvidia announces financial results for second quarter fiscal 2024

#251

Post by ayakang31415 »

eldenring wrote: post #248
ayakang31415 wrote: post #235

Their GPUs have been very performant for my research (DNN training). However, their VRAM could be much larger. In my mind CPU ram is very cheap (for 32GB, it is currently around $65). But their GPUs for DNN that I use oh HPC are always less than 32GB but the GPUs are very pricey. Does anyone know why they don't increase their VRAM capacity so I can test models that require higher VRAM? Is VRAM considerably more expen…

Yes it is quite expensive. The issue is memory bandwidth is a lot more constrained when youre routing to hundreds or thousands of cores instead of the handful you need to support on a CPU.

So the higher cost from higher VRAM comes from the implementation of higher bandwidth to accommodate more data flow because there are more cores versus CPU?

Re: Nvidia announces financial results for second quarter fiscal 2024

#252

Post by tomnipotent »

TheAlchemist wrote: post #124

What's also pretty interesting that they actually didn't sell more chips this quarter - they ... just pretty much doubled the prices (hence the huge margin). This is what having a monopoly looks like ! This is also why companies that manufacture their cards didn't report any uptick in profits. I'm wondering how this play out in some months ? Do they have any pricing power with respect to NVidia ? Or NVidia could just…

> just pretty much doubled the prices

They prices were already double, it was just scummy resellers capturing that value rather than Nvidia.

Re: Nvidia announces financial results for second quarter fiscal 2024

#253

Post by SAI_Peregrinus »

buzzerbetrayed wrote: post #211
jfoutz wrote: post #197

Earlier quoted context omitted.

Amazon, Alphabet, Meta. Who are the F and G, and where is apple?

Facebook, Amazon, Apple, Microsoft, and Google

While I hate using the stupid "meta" name, MAGMA is a much more fun acronym than FAAMG, or GMFAA, or MAGAF, etc.

Re: Nvidia announces financial results for second quarter fiscal 2024

#254

Post by rasz »

dekhn wrote: post #206
desiarnezjr wrote: post #194

Earlier quoted context omitted.

I remember meeting NVIDIA in the late aughts (2007?) first launching their CUDA efforts. Really the product was a re-branded 780GTX or whatever their high end gaming card was at the time more or less, but they already laid out a clear pathway to today (more or less).

I remember meeting with them in the mid aughts when they were first talking to HPC folks about using their cards for science. I'll never forget what the chief scientist from nVidia said. "What is the color of a NaN? That is, when you render a texture with a nan value, what does it look like? I'll tell: it's nvidia green."

I remember uni course on GPGPU and only discovering during first lecture Nvidia donated hardware to make sure it would be Cuda only course.

Re: Nvidia announces financial results for second quarter fiscal 2024

#255

Post by gen220 »

How durable do we think their Revenue is?

To remind us all, they're selling capitalized assets, not contracts or services.

Is the marginal demand for GPU chips over the next 3 years enough to sustain (or grow?) current revenues and keep this valuation afloat? To me, it feels like a comparatively fragile situation to find themselves in, to convince the world of 2025 that they need even more chips, unless "everybody needs to train their own LLM" is a secular trend.

I'm not sure if investors fully appreciate the nuances of this boom, or if I'm not fully appreciating how many GPUs "need" to be held by different companies (and sovereign entities, if you've read the headlines in the last couple weeks) to train LLMs in the coming decade.

Re: Nvidia announces financial results for second quarter fiscal 2024

#256

Post by shpongled »

_zoltan_ wrote: post #146
mikestew wrote: post #4

Whelp, I guess those September NVDA call options I sold are going to get exercised. Who woulda guessed after the crypto fallout that "AI" would come along and bump the price back up. Record revenues, and a dividend of $0.04 on a $450 stock? That's not even worth the paperwork. For example, if you bought 100 shares, that's $45K. From that, around September $4 will show up in your account, which you have to pay taxes o…

I sold 600C for this Friday an hour or so before earnings. Free money with 168% IV.

I sold the 590 :)

Re: Nvidia announces financial results for second quarter fiscal 2024

#257

Post by gen220 »

NickC25 wrote: post #3

Absolutely monster numbers. The aftermarket trading is up over 8% as of right now, roughly $41 USD to approximately $513 a share. Insane. Anyone who is a lot more versed in company valuation methodology see this as being near peak value, or does Nvidia have a lot more room to run?

The fundamental model of company valuation is that the company's equity is worth the accumulation of the company's future cash flows, typically discounted by some rate so that predicted cash flows 5 years from now are worth some % less than 100%, with the intent of pricing in uncertainty.

Nvidia has had a watershed moment of revenue growth, because they're the only significant player in the space of top-of-the-line GPUs for training LLMs.

Their current valuation bakes in the assumption that not only is this unprecedented level of pricing power durable, but that top line revenue will also grow significantly over the next few years.

Reminder that Nvidia is selling chips, mostly to datacenters, whose purchasing habits are primarily driven by "customer" demand (where customers are, in this case, tech companies wanting to train neural nets).

So a bet that they go up from here is a bet that datacenters will want at least as many chips in the next N continuous quarters, and will be willing to pay the current premium that Nvidia is charging, today. The corollary is you're betting that "customer demand" for ever-improving GPUs is climbing an incredibly upwards, secular (read: permanent, non-cyclical) trajectory, such that it outpaces the assumptions of these already-lofty expectations.

I think betray my own opinion, but the price is what it is. :)

Re: Nvidia announces financial results for second quarter fiscal 2024

#258

Post by andromeduck »

epolanski wrote: post #166
johnvanommen wrote: post #75

Earlier quoted context omitted.

> Software and hardware from competitors will catch up, crunching 4/8/16 bit width numbers is no rocket science. I made the mistake of buying an A770 from Intel, based on the spec sheet. Hardware is comparable to what Nvidia is selling, for 70% of the price. It's basically a useless paperweight. The AI software crashes constantly, and when it's not crashing, it performs at half the level of Nvidia's cards. Turns out…

Sure, but there's lots of room for improvement and plenty of financial benefits to do so.

The problem is HW companies like Intel are dominated by EEs and bean counters. Both see software as cost center.

Re: Nvidia announces financial results for second quarter fiscal 2024

#259

Post by solardev »

ancientworldnow wrote: post #36
solardev wrote: post #24

Earlier quoted context omitted.

Gamers don't have datacenter budgets

Gamers like to ignore inflation and increasing fab costs and pretend cards should cost the same forever with double performance gains every 1.5 years.

Why do GPUs get so much more expensive compared to the rest of the system? CPUs, hard drives, prebuilt systems, laptops etc. haven't gotten ridiculously more expensive.

It used to be that $200 would get you a low-range GPU, $400 a midrange, and $600 a pretty darned good one. The 1070 launched at $379 (or $480 in 2023 dollars), the 2070 at $499, the 3070 at $499, then all of a sudden the 4070 now is $599. That's a big difference, even accounting for inflation.

The 1080 Ti was $699, an already-unfathomable price back then that cost more than a whole console setup. Today? The 4080 is $1200. That's often more than the rest of the system put together.

Re: Nvidia announces financial results for second quarter fiscal 2024

#260

Post by reilly3000 »

fnordpiglet wrote: post #21
pb7 wrote: post #12

Earlier quoted context omitted.

What makes it a meme stock? It's printing money from an industry that is only starting. This isn't crypto nonsense.

Yeah, every company of any note is planning how to use AI, and a lot of the use cases are already proved out. This isn’t speculative nonsense. The question is how big does it get, not will it be big. Crypto and blockchain never had an actual proved out use case. There was an interesting idea but no one ever could figure out a way it was useful. The costs associated were much higher than the risks of not using it. Peo…

I’m saying all of that growth has been priced in for multiple years now. It’s likely to have very solid fundamentals and new relationships in enterprises everywhere for years to come. As such it’s ripe for overvaluation by both retail and institutional traders. If I had a horse in this race I would ride the wave for a while as others piled on, then take a nice honest profit before one of their many competitors turns in a healthy AI driven quarter like this. It will still be a strong stock, but expect some significant flux in a correction.
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