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Numbers are impressive, not sure why it's down in AH.
Everyone already knew they were going to be impressive so the stock price reflected that, and so it fell because they were expecting it to be slightly more impressive than it already was.
Numbers are impressive, not sure why it's down in AH.
Now it is the company with the second largest market cap in the world and enormous growth, so analysts are watching it more and talking about it more. Results are more baked in.
Also, it was announced the next-gen Blackwell chips had a flaw found late in the design and will probably be delayed three months, which will also affect revenues.
Forget about the market reaction for a minutes, which is always difficult to interpret. More holistically, aren't we underestimating their dev ecosystems (CUDA etc.)? Think of the dev ecosystem effects in all the various permutations, e.g. from Windows or Apple to AWS to more granular like PyTorch. Those advantages aren't easily eliminated just by more competitors or even 'better' competitors.
Jim Keller calls CUDA NVidia's swamp (not their moat) and I think that's so so so accurate. Nvidia's fief has a lot of folks in it, who've built sloppy stuff all over the place because they can. Most of that won't get replaced. But the modern tooling like PyTorch and its underlying JAX doesn't need or care about this legacy. The future can build far more intimately & with deliberation to folks who haven't such large…
When I hit an input box on my phone, a keyboard pops up on the screen, with the first row saying QWERTYUIOP, just like the Sholes and Glidden typewriter of 1878. I'm waiting for innovation on this first, then I'll look for innovation beyond CUDA.
Earlier quoted context omitted.
Jim Keller calls CUDA NVidia's swamp (not their moat) and I think that's so so so accurate. Nvidia's fief has a lot of folks in it, who've built sloppy stuff all over the place because they can. Most of that won't get replaced. But the modern tooling like PyTorch and its underlying JAX doesn't need or care about this legacy. The future can build far more intimately & with deliberation to folks who haven't such large…
> Nvidia has to keep maintaining this huge footprint of software, keep it going themselves, supporting a vast legacy, while everyone else gets to innovate forward, with much better access to the hardware. When I hit an input box on my phone, a keyboard pops up on the screen, with the first row saying QWERTYUIOP, just like the Sholes and Glidden typewriter of 1878. I'm waiting for innovation on this first, then I'll l…
Forget about the market reaction for a minutes, which is always difficult to interpret. More holistically, aren't we underestimating their dev ecosystems (CUDA etc.)? Think of the dev ecosystem effects in all the various permutations, e.g. from Windows or Apple to AWS to more granular like PyTorch. Those advantages aren't easily eliminated just by more competitors or even 'better' competitors.
Jim Keller calls CUDA NVidia's swamp (not their moat) and I think that's so so so accurate. Nvidia's fief has a lot of folks in it, who've built sloppy stuff all over the place because they can. Most of that won't get replaced. But the modern tooling like PyTorch and its underlying JAX doesn't need or care about this legacy. The future can build far more intimately & with deliberation to folks who haven't such large…
PyTorch supports both ROCm and Ibex, but it's support is spotty and incomplete to the point where it becomes a pain to use despite AMD spending billions on improving its software layer.
NVIDIA is reaping a decade of design decisions on CUDA compatibility made less sloppily than its competitors.
What is the case for continued growth of Nvidia? Every single sizeable entity (Google, Microsoft, Intel, AMD, etc.) is working furiously to replace them. I can imagine plenty of reasons that Nvidia sales would remain strong, but I understand less where more growth would come from.
Forget about the market reaction for a minutes, which is always difficult to interpret. More holistically, aren't we underestimating their dev ecosystems (CUDA etc.)? Think of the dev ecosystem effects in all the various permutations, e.g. from Windows or Apple to AWS to more granular like PyTorch. Those advantages aren't easily eliminated just by more competitors or even 'better' competitors.
People totally underestimate that and still think of Nvidia as a Semi company which only makes chips lol.
Earlier quoted context omitted.
> Record quarterly revenue of $30.0 billion, up 15% from Q1 and up 122% from a year ago Looks like things are slowing down (second derivative)
> Looks like things are slowing down Important question: is it demand or manufacturing capability?
Nvidia is totally supply constraint as it can easily be seen. They also underguide every quarter for 2 years and beating it. But if you look closely then you can easily see the $4b QoQ growth. That is the constant there since 2022.
Blackwell will add additional supply next year. I don't think Hopper wills top shipping and I don't think demand will fall. So next year QoQ absolute growth could go up which will probably surprise to the upside.
What is the case for continued growth of Nvidia? Every single sizeable entity (Google, Microsoft, Intel, AMD, etc.) is working furiously to replace them. I can imagine plenty of reasons that Nvidia sales would remain strong, but I understand less where more growth would come from.
If Nvidia can utilize $4500 for very 2nd GPU they ship in then next 10 years then in 10 years Nvidia will make more revenue annually with SW only than today total. And that is just the beginning and shows the power of a platform.
Do you think Apple dominates because of the great iPhone HW or iOS? Think about that and you'll understand why Nvidia will continue to grow and surprise.