Nvidia, the world’s leader in artificial intelligence, because the Q3 financial report released was less than expected, in the past trading day, the stock price plummeted 18.76%, and the intraday fell more than 20%, the largest single-day decline in a decade, and the market value evaporated more than 23 billion US dollars , surpassing AMD's closing market value of $21 billion.
It is worth noting that since Nvidia hit a record high of $292.76 on October 2, 2018, the latest closing price was $164.43. In just one and a half months, the stock price was nearly halved. Nvidia officials believe that this is due to the problems left by the weakening of the cryptocurrency market.
01
Nvidia's pillar business
At present, Nvidia has two business pillars, including gaming and data centers. Among them, the data center business volume is only one-third of the game business, but it is in the large-scale development of deep learning and cloud computing, and the subsequent development of Qi AI is huge. In the global server GPU market, NVIDIA's market share is 96%, in the Absolute dominance.
In addition to the two pillar businesses, NVIDIA also has a professional visualization business and an automotive platform business. It is worth mentioning that the above businesses, as well as the data center business, have achieved record-high revenue. However, its performance dragged down Nvidia's overall performance due to the high proportion of its gaming business.
From a business perspective, Nvidia's future is in the data center business and automotive platform business, but its gaming business (mainly graphics card business) is still very competitive globally. Among them, the reason for the record-breaking data center platform business is the rapid development of artificial intelligence, which will be the main growth point of NVIDIA in the future.
It is worth noting that NVIDIA released a new generation of GPU architecture Turing (Turing) in Q3, which is a huge leap in computer graphics and artificial intelligence, which enhances the gaming experience and is the largest performance improvement in history. greatest innovation".
02
The automotive platform business is the future
While the automotive platform business is setting records, Nvidia CEO Jen-Hsun Huang said on the Q3 earnings conference call that great progress has been made in the cooperation with Volvo, which is a victory for Nvidia’s Drive platform, and Volvo will launch a mass-market L2 class. of self-driving cars, which will begin production in early 2020.
In fact, Volvo and NVIDIA will jointly develop autonomous driving functions based on DRIVE AGX Xavier, and integrate 360-degree surround perception and driver monitoring systems, and allow Volvo to implement new connected services, energy management technology, in-vehicle personalization options and automatic driving skills.
NVIDIA DRIVE AGX features the NVIDIA Xavier system-on-chip, the world's first processor designed specifically for autonomous driving. For safety, the Xavier SoC employs six different types of processors for redundant and diverse algorithms.
At present, Xavier is undergoing ISO quality verification and has passed two of the three procedures. The last procedure is about to be carried out. If there is no accident, it will become the world's first ISO-certified autonomous driving chip.
In the Chinese market, there is news that the second-hand market price of Xavier has been hyped up to 300,000 yuan. It is worth noting that the autonomous driving industry has reported that Nvidia may be more inclined to provide a total solution rather than selling chips individually.
Although NVIDIA said that the revenue of the automotive platform business hit a record in Q3, it needs to be taken seriously that the proportion of its automotive business in the total business is still relatively small, but the future can be expected.
03
Is Nvidia stock worth investing in?
In just one and a half months, Nvidia's share price has fallen by nearly half, which raises the question, is it worth entering?
Nvidia's rival AMD fell 20% after the market after releasing its Q3 earnings report, and its CEO said that the performance was also marketed by the decline in demand for the digital currency market.
After the madness of digital currency, the market performance of the current sharp decline has seriously hit the demand for obtaining digital currency with GPUs with huge computing power.
It can be understood as the slump of Nvidia and AMD, which is the impact of the digital currency market. However, Nvidia's future pillars of business, including its data center business and its automotive platform business, are seeing record revenue. This means that there is no problem with Nvidia's strategy.
According to analysts' expectations, Nvidia's Q3 revenue was $3.24 billion, but the final $3.181 billion revenue was $59 million lower than expected. The difference in expectations cost Nvidia $23 billion in market value.
In terms of gross profit margin, Nvidia’s gross profit margin in the third fiscal quarter under GAAP was 60.4%, higher than 59.5% in the same period of the previous fiscal year, but down from 63.3% in the previous quarter. 2.9 percentage points; non-GAAP is 61%, an increase of 1.3 percentage points over the same period last year.
In terms of net profit, the net profit of Q3 was 1.23 billion US dollars, the cumulative net profit of the fiscal year was 3.575 billion US dollars, and the year-on-year growth rate of net profit was 85.43%, and the year-on-year growth rate has slowed down.
Of the 35 analysts covering Nvidia, 23 have an overweight or buy rating, 11 have a hold rating and one has an underweight rating. Twenty analysts lowered their price targets, reducing their average price target to $246.71 from a pre-earnings average of $285.94.
The handheld addresser is used to program the address of the monitoring module offline. When in use, connect the two output wires of the handheld encoder to the communication bus terminal (terminal label 1, 2) of the monitoring module, turn on the black power switch on the right side upwards, and press "ten Add", [Subtract ten", [Add one place" and [Subtract one place" to program the address.
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