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You mean $280, right
Couldn't agree more!
This is the NVDA board
Wall Street HAS NO IDEA what's coming.$NVDA just secretly changed everything we know about SOFTWARE.
— Alex (@TickerSymbolYOU) June 7, 2024
🤫 Don't say I didn't warn you: pic.twitter.com/wt4rShlCmS
NVIDIA (NVDA) has $34 billion in short bets against it, nearly twice the short interest in Apple and Tesla, multiple media outlets reported Thursday, citing a S3 Partners report.
However, the shorts represent just 1% of Nvidia's market value. Nvidia's stock market value currently stands at $2.976 trillion on Friday morning, according to Yahoo Finance.
S3 Partners Managing Director Ihor Dusaniwsky said in an interview with Yahoo Finance that Nvidia is the "largest short in the U.S. market."
"People are shorting it based on it being a momentum stock and also a hedge to the market and a hedge to the tech side of the Street," Dusaniwsky said in a televised interview.
It's the opposite of capitalism which we can change for the benefit of Nvidia and all US corps in November
Agreed. It would take years
Antitrust rumors
McKenzie Webster after split target $300
Reuters is fake news
Let's revisit eoy
Yup
NVIDIA and the world's top computer manufacturers today unveiled an array of NVIDIA Blackwell architecture-powered systems featuring Grace CPUs, NVIDIA networking and infrastructure for enterprises to build AI factories and data centers to drive the next wave of generative AI breakthroughs.NVIDIA announced new NVIDIA RTX technology to power AI assistants and digital humans running on new GeForce RTX AI laptops.NVIDIA announced that major Taiwanese electronics makers are using the company's technology to transform their factories into more autonomous facilities with a new reference workflow. The workflow combines NVIDIA Metropolis vision AI, NVIDIA Omniverse physically based rendering and simulation, and NVIDIA Isaac AI robot development and deployment.NVIDIA today announced that the world's leaders in robot development are adopting the NVIDIA Isaac robotics platform for the research, development and production of the next generation of AI-enabled autonomous machines and robots.To address the increasing need for real-time AI computing at the industrial edge, NVIDIA today announced the general software availability of NVIDIA AI Enterprise-IGX with NVIDIA Holoscan on the NVIDIA IGX platform. Together, they empower solution providers within the medical, industrial and scientific computing sectors to develop and deploy edge AI solutions faster, with enterprise-grade software and support.
Should You Buy Nvidia Stock Before June 6?
By Adam Spatacco – Jun 1, 2024 at 11:30AM
Nvidia announced a 10-for-1 stock split during its first-quarter earnings report.
Since its last split in July 2021, Nvidia stock has returned over 450%.
Valuation analysis and historical returns suggest that now is the optimal time to scoop up shares.
Nvidia's earnings report was jam-packed with positive information, but perhaps the most important detail surrounds an important date this month.
The time has come: Nvidia's (NVDA -0.79%) long-awaited first-quarter report rounded out an exciting earnings season for artificial intelligence (AI) investors.
Indeed, revenue is soaring thanks to surging demand for Nvidia's H100, A100, and new Blackwell graphics processing units (GPUs). Even better? The company's pricing power is helping Nvidia achieve consistent margin expansion and profitability.
Nvidia is currently riding a once-in-a-generation growth wave. There's so much information packed into their earnings report, it's easy to become distracted by the latest record the company posted.
While the financial performance is undoubtedly impressive, there was one part of the earnings report that really caught my eye: Nvidia announced a 10-for-1 stock split.
According to the earnings release, investors owning shares of Nvidia as of market close on June 6 will be eligible for split-adjusted shares.
Let's break down how stock splits work, and explore why scooping up shares of Nvidia now could be a good idea.
If Nvidia's 10-for-1 split were to go into effect today, anyone owning Nvidia stock would receive nine additional shares for every one share that they own. But at the same time, your average cost per share would be reduced by a factor of 10.
Since the share count and the stock price change by the same ratio, the market cap for Nvidia theoretically remains unchanged.
However, this is seldom the case. Let's take a look at Nvidia's stock-split history.
Has Nvidia split its stock before?
Nvidia has completed five stock splits since going public. The last time Nvidia split its stock was July 20, 2021.
The chart below illustrates movements in Nvidia stock 30 days after completing its 4-for-1 split in July 2021.
The last time Nvidia split its stock, investors enjoyed nearly a 12% return in just one month following the split. By the end of December 2021, Nvidia stock had rallied an eye-popping 58% from the day it split in July.
Is now a good time to buy Nvidia stock?
Generally speaking, trading activity increases when a company conducts a stock split. The reason is because even though the split does not inherently change the valuation of the company, shares are perceived as less expensive.
In other words, since a split forces the stock price to go down, many investors think the stock is on sale and that they are taking advantage of a cheaper price. This is not the case, and it's all psychological.
Now, with Nvidia stock trading over $1,000 per share, it's likely that many retail investors view the stock as expensive. But keep in mind, even though the post-split price for Nvidia stock would be roughly $100, the charts above point out that stock-split stocks can experience outsize momentum. This means prices can rise sharply in a short period of time, and investors are actually buying shares at a higher valuation compared to pre-split levels.
Since Nvidia's last split in July 2021, shares have rallied more than 450%. This abnormally high return has catapulted Nvidia to the world's third most valuable business -- only behind Microsoft and Apple.
This is where valuation analysis becomes important. Right now, Nvidia stock trades at a price-to-free-cash-flow multiple of 66. This might seem high, even for a growth stock. However, this is actually materially lower than Nvidia's average over the last three and five years.
Moreover, Nvidia's closest rival, Advanced Micro Devices, trades at a price-to-free-cash-flow ratio of 230x. Considering AMD isn't growing anywhere near commensurate rates to that of Nvidia, I'd say that Nvidia stock looks more attractive.
While Nvidia stock might appear pricey, the analyses above illustrate that the company is actually trading at a more normalized level compared to its biggest competitor. Moreover, given the historical trends from Nvidia's last stock split, I'm fairly confident that the stock could witness some newfound attention following the split.
For these reasons, I'd encourage investors to consider scooping up shares in Nvidia stock before June 6. While it may be tempting to flip shares for a quick profit following the split, the return over the last few years speaks for itself.
Investors should employ a long-term time horizon and allow the day traders to enter and exit around the time of the split. The longer-term themes showcase that buying shares before a split and holding them for several years is the superior strategy.
Should You Buy Nvidia Stock Before June 6?
By Adam Spatacco – Jun 1, 2024 at 11:30AM
KEY POINTS
Nvidia announced a 10-for-1 stock split during its first-quarter earnings report.
Since its last split in July 2021, Nvidia stock has returned over 450%.
Valuation analysis and historical returns suggest that now is the optimal time to scoop up shares.
10 stocks we like better than Nvidia
NASDAQ: NVDA
Nvidia
Nvidia Stock Quote
Market Cap
$2,697B
Today's Change
(-0.79%) -$8.67
Current Price
$1,096.33
Price as of May 31, 2024, 4:00 p.m. ET
Nvidia's earnings report was jam-packed with positive information, but perhaps the most important detail surrounds an important date this month.
The time has come: Nvidia's (NVDA -0.79%) long-awaited first-quarter report rounded out an exciting earnings season for artificial intelligence (AI) investors.
Indeed, revenue is soaring thanks to surging demand for Nvidia's H100, A100, and new Blackwell graphics processing units (GPUs). Even better? The company's pricing power is helping Nvidia achieve consistent margin expansion and profitability.
Nvidia is currently riding a once-in-a-generation growth wave. There's so much information packed into their earnings report, it's easy to become distracted by the latest record the company posted.
While the financial performance is undoubtedly impressive, there was one part of the earnings report that really caught my eye: Nvidia announced a 10-for-1 stock split.
According to the earnings release, investors owning shares of Nvidia as of market close on June 6 will be eligible for split-adjusted shares.
Let's break down how stock splits work, and explore why scooping up shares of Nvidia now could be a good idea.
Collapse
NASDAQ: NVDA
Nvidia
Today's Change
(-0.79%) -$8.67
Current Price
$1,096.33
YTD
1W
1M
3M
6M
1Y
5Y
PRICE
VS S&P
NVDA
KEY DATA POINTS
Market Cap
$2,697B
Day's Range
$1,069.40 - $1,127.17
52wk Range
$373.56 - $1,158.19
Volume
61,326,250
Avg Vol
49,787,632
Gross Margin
75.29%
Dividend Yield
0.01%
How do stock splits work?
Stock splits are a form of financial engineering. When a company splits its stock, two important things happen.
First, the number of outstanding shares increases by the ratio proposed in the split. Second, since the number of outstanding shares rises, the stock price subsequently drops by the same ratio.
If Nvidia's 10-for-1 split were to go into effect today, anyone owning Nvidia stock would receive nine additional shares for every one share that they own. But at the same time, your average cost per share would be reduced by a factor of 10.
Since the share count and the stock price change by the same ratio, the market cap for Nvidia theoretically remains unchanged.
However, this is seldom the case. Let's take a look at Nvidia's stock-split history.
A person thinking while holding a piggy bank.
IMAGE SOURCE: GETTY IMAGES.
Has Nvidia split its stock before?
Nvidia has completed five stock splits since going public. The last time Nvidia split its stock was July 20, 2021.
The chart below illustrates movements in Nvidia stock 30 days after completing its 4-for-1 split in July 2021.
NVDA Chart
NVDA DATA BY YCHARTS
The last time Nvidia split its stock, investors enjoyed nearly a 12% return in just one month following the split. By the end of December 2021, Nvidia stock had rallied an eye-popping 58% from the day it split in July.
Is now a good time to buy Nvidia stock?
Generally speaking, trading activity increases when a company conducts a stock split. The reason is because even though the split does not inherently change the valuation of the company, shares are perceived as less expensive.
In other words, since a split forces the stock price to go down, many investors think the stock is on sale and that they are taking advantage of a cheaper price. This is not the case, and it's all psychological.
Now, with Nvidia stock trading over $1,000 per share, it's likely that many retail investors view the stock as expensive. But keep in mind, even though the post-split price for Nvidia stock would be roughly $100, the charts above point out that stock-split stocks can experience outsize momentum. This means prices can rise sharply in a short period of time, and investors are actually buying shares at a higher valuation compared to pre-split levels.
Since Nvidia's last split in July 2021, shares have rallied more than 450%. This abnormally high return has catapulted Nvidia to the world's third most valuable business -- only behind Microsoft and Apple.
This is where valuation analysis becomes important. Right now, Nvidia stock trades at a price-to-free-cash-flow multiple of 66. This might seem high, even for a growth stock. However, this is actually materially lower than Nvidia's average over the last three and five years.
Moreover, Nvidia's closest rival, Advanced Micro Devices, trades at a price-to-free-cash-flow ratio of 230x. Considering AMD isn't growing anywhere near commensurate rates to that of Nvidia, I'd say that Nvidia stock looks more attractive.
While Nvidia stock might appear pricey, the analyses above illustrate that the company is actually trading at a more normalized level compared to its biggest competitor. Moreover, given the historical trends from Nvidia's last stock split, I'm fairly confident that the stock could witness some newfound attention following the split.
For these reasons, I'd encourage investors to consider scooping up shares in Nvidia stock before June 6. While it may be tempting to flip shares for a quick profit following the split, the return over the last few years speaks for itself.
Investors should employ a long-term time horizon and allow the day traders to enter and exit around the time of the split. The longer-term themes showcase that buying shares before a split and holding them for several years is the superior strategy.
yes
Even at the same price I'd rather have the Tesla
Nvidia Stock Tops $1,000, Blackwell Could Aid 10-Fold Rise By 2026
Peter Cohan
Senior Contributor
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May 25, 2024,02:51pm EDT
Jensen Huang, President of NVIDIA holding the Grace hopper...
TAIPEI, TAIWAN - 2023/06/01: Jensen Huang, [+]
SOPA IMAGES/LIGHTROCKET VIA GETTY IMAGES
About a year ago, Nvidia fired the earnings report heard around the world. Since then, the chip design giant’s stock has soared 248%.
On May 23, Nvidia realized my April prediction that a strong quarterly earnings report could propel the company’s stock price past $1,000 a share.
Nvidia — which contracts out chip manufacturing — not only beat expectations and raised guidance, the company also announced a 10-for-1 stock split, bought back billions worth of stock, and considerably boosted its dividend.
When the stock split sends Nvidia’s stock price down to around $100 a share, I expect the company could sustain the high growth that sent its stock price soaring for years to come.
Here are three reasons its shares could again top $1,000 post-split:
Nvidia’s great performance and prospects.
Nvidia’s successful growth investments.
CEO Jensen Huang’s leadership — which could also be Nvidia’s biggest investment risk should he leave the job without a more capable successor.
Nvidia’s Great First Quarter Performance And Prospects
Nvidia faced an exceptionally high growth hurdle as the anniversary of its mind-blowing first quarter 2023 earnings report — which featured a 54% better-than- expected growth forecast for Q2 2023 — neared.
Below, according to my April 2024 Forbes post, are the key investor expectations for Nvidia in the most recent quarter and how much Nvidia beat those targets:
FY 2025 Q1 net sales forecast: $24.22 billion — 237% more than the year before, according to Yahoo! Finance. Nvidia beat that target by $1.78 billion — generating $26.04 billion in revenue, according to CNBC.
FY 2025 Q1 gross margin forecast: 77.03% — 13 percentage points more than the year before, Yahoo! Finance noted. Nvidia reported a 78.4% gross margin for the quarter — 1.37 percentage points above consensus, noted a company statement.
FY 2025 Q1 adjusted earnings per share forecast: $5.50 — 405% higher than the year before, according to CNBC. Nvidia reported adjusted EPS of $6.12 — exceeding the forecast by 62 cents a share, CNBC wrote.
FY 2025 Q2 revenue forecast: $28 billion — 107.4% above 2023’s second quarter revenue and above analysts’ expectations, noted the Journal.
Nvidia also decided to take a bow for investors such as Warren Buffett who like stock buybacks and dividends.
To that end, the chip designer announced a 10-for-1 stock split effective June 7, bought back $7.7 billion of the company’s shares, and more than doubled its per-share dividend from four cents to 10 cents based on the current share count, noted the Wall Street Journal.
“We are fundamentally changing how computing works and what computers can do,” Nvidia CEO Jensen Huang said in a conference call with analysts. “The next industrial revolution has begun.”
Nvidia’s Growth Investments
The most important question a CEO must answer is: Whither future growth? In my book, Disciplined Growth Strategies, I described a canvas on which leaders can paint their future growth trajectories. This canvas consists of five dimensions of growth — new or current customer groups, products, geographies, capabilities, and culture.
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In high tech markets, business leaders must place the right bets on future growth opportunities before their rivals beat them to the punch. Since technology product life cycles are short and rivals are quick to copy innovations, such bets are vital for sustaining rapid growth.
For Nvidia, the key dimensions of growth are customer group and product. Here are the company’s key bets on each dimension:
Customer group: data centers. Nvidia enjoyed a 427% increase in data center revenue — what CEO Jensen Huang refers to as AI factories, according to the New York TimesNew York Times 0.0% — accounting for $22.6 billion in revenue for the chip designer. Corporate luminaries — including Google, Microsoft, Meta, AmazonAmazon 0.0%, OpenAI, and Tesla — are among more than 100 customers purchasing — from hundreds to 100,000 — GPUs from Nvidia, the Times wrote. For example, Tesla is using 35,000 H100 chips to help train models for autonomous driving, Nvidia CFO Colette Kress told the Times.
Products: H100, Blackwell, and InfinBand. Nvidia’s most important AI product has been the H100 — a GPU used to train large language models. As I wrote in April, Nvidia plans to ship a successor — Blackwell — which Huang predicted would generate “a lot of revenue” for Nvidia this year, according to the company’s first quarter 2025 investment conference call. Nvidia also reported a more than tripling in revenue to $3.2 billion from the company’s InfiniBand networking parts which companies value more highly as they build “clusters of tens of thousands of chips that need to be connected,” noted CNBC.
Under Huang’s leadership, Nvidia’s share of the AI chip industry has reached somewhere between 80% and 95%, I wrote in my February 2024 Forbes article.
Signs of Nvidia’s market power include:
High willingness to pay. Customers are willing to pay a significant price premium and to wait for over a year to obtain Nvidia’s chips.
Time savings offset the high price. Nvidia chips are expensive; however, Nvidia says they enable companies to save time training LLMs — which more than offsets the price premium.
Developers build on Nvidia first. Rivals who copy Nvidia hardware are always racing to catch up. The 2006 launch and ongoing improvement of CUDA — the company’s software for programming GPUs — is the most important reason designers choose Nvidia.
The Biggest Risk To Nvidia’s Continued Success
The biggest risk to Nvidia’s continuing stock market rise is the company’s dependence on Huang — who at some point will no longer be the company’s CEO.
As I described in my forthcoming book, Brain Rush, Huang is the rare CEO — accounting for fewer than 0.4% of founders — who can turn their idea into a public company worth billions of dollars — or in Nvidia’s case trillions of them.
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He has done a great job in five of the six key leadership tasks that distinguish such leaders:
Fuel cognitive hunger — meaning Huang maintains his desire to learn new things and sustains a healthy paranoia.
Solve the right problem well — as described above, Nvidia provides world-class solutions to unmet customer needs.
Win and keep customers — the AI chip designer has excelled at winning customers and selling them more of the company’s products.
Adapt to changing headwinds and tailwinds — Nvidia quickly shifted design focus from gaming, to blockchain, to generative AI as he saw new growth.
Invest in new growth opportunities — Nvidia built new products and protected their value from rivals with software and partnerships.
The final leadership task is preparing the next CEO. Is Huang developing a successor who could do the CEO job as well or better than he is doing it now? TechNewsWorld argued Huang would keep serving as CEO for a decade and gradually replace himself with “digital Jensen Huangs.” I can’t help wondering whether this is a joke.
Officially, Nvidia considers succession planning to be important. For example, Nvidia operates a management development and exposure program involving more than “60 senior managers working directly with the CEO to execute corporate strategies,” according to Nvidia’s 2024 annual report. Nvidia also offers executive development programs including “ training courses, mentoring, peer coaching, and ongoing feedback.”
How Nvidia’s Post-Split Stock Could Rise 10-Fold
In the year since Nvidia’s boffo May 2023 quarterly report, the company’s stock has risen 248%.
Nvidia stock — after splitting 10-for-1 early in June — could rise from $100 to $1,000 by 2026. This optimistic scenario assumes Nvidia keeps beating growth expectations and raising its forecasts — resulting in a 248% annual increase in the company’s stock price over the next two years.
Optimism is certainly justified, according to one analyst. “I say it's the most important company in the world, as far as innovation,” Jim Roppel, founder of The Roppel Report, told Investor’s Business Daily.
“Nvidia has managed to leapfrog from one tech trend to another, beginning with video games, then moving to things like automotive applications and now generative AI,” he added.
Generative AI’s productivity benefits could crimp inflation — sustaining strong demand for Nvidia’s products. “The major innovation cycle is healthy and thriving,” he told IBD. “I really think this golden goose is ripping. The golden goose is working overtime here.”
Another analyst is less sanguine. Nvidia stock could drop unless it beats expectations by at least $1.5 billion in future quarters, Susquehanna analyst Christopher Rolland wrote in a May 20 client note, reported the Journal.
Another risk to investors? “Moves from competitors—including in-house chip efforts at its own largest customers,” the Journal noted.
Some day the Nvidia bears will be right. That day could be a decade away.
--NVIDIA Sets 10-For-1 Forward Stock Split, Effective June 7
$1000+ already
$NVDA Earnings:
- Rev: $26B vs. 24.6B est ✅
- EPS: +6.12 vs. +5.58 est
Beat on all
Buy!
It's soon no doubt
By end next week
McKenzie Webster out with highest new target: $1,500
Jim Cramer and Ken Fisher Love These 5 Stocks
Published on May 14, 2024 at 8:56 am by FAHAD SALEEM in Hedge Funds, News
3. NVIDIA Corp (NASDAQ:NVDA)
Ken Fisher’s Stake: $8,252,596,105
Cramer has been reiterating his bullish take on NVIDIA Corp (NASDAQ:NVDA), albeit with a rather dampened mood and enthusiasm. Recently, Cramer said that he still believes NVIDIA Corp (NASDAQ:NVDA) is a stock to hold, not trade.
CICC Adjusts Price Target on NVIDIA to $1,000 From $870, Keeps Outperform Rating
05:26:27 AM ET, 05/14/2024
Wells Fargo Adjusts Price Target on NVIDIA to $1,150 From $970, Keeps Overweight Rating
05:44:11 AM ET, 05/14/2024 - MT Newswires
Understand the concern but would be years away
Nvidia Stock Analysis: Why Betting Against Overachieving NVDA Is a Fool’s Errand
May 13, 202406:00 EDT
NVDA
+1.27%
Amazingly, there are still bearish holdouts who, despite all of the available evidence, continue to bet against Nvidia
NVDA
. The opportunity to generate revenue from artificial intelligence compatible processors isn’t just a fad. Nvidia stock gets an “A” grade for advancing AI hardware technology in 2024.
Nvidia has an earnings report and conference call coming up on May 22. This will be an exciting event, but you don’t have to wait until May 22 to start a share position in Nvidia. After all, you can pick any day in May to invest in an overachiever like Nvidia.
This Is a Positive Sign for Nvidia
How strong is the demand for AI-enabled hardware? Here’s a news item that should help to answer this question. According to Reuters, South Korea-based SK Hynix disclosed that its “high-bandwidth memory chips used in AI chipsets were sold out for this year and almost sold out for 2025.”
This is relevant because SK Hynix is a supplier to Nvidia. Furthermore, these HBM chips are selling like hot cakes “as businesses aggressively expand artificial intelligence services.”
Reuters also mentioned that Nvidia commands around 80% of the AI-chip market. That’s astonishing, if you really think about it. And clearly, it’s a great market for Nvidia to be involved with.
When a major supplier like SK Hynix has products that are flying off the shelves (figuratively speaking), it’s hard not to be long-term bullish about Nvidia stock.
Preparing for a ‘New Era’ With Nvidia
Nvidia’s AI conference for developers, known as GTC, took place recently and Nvidia didn’t disappoint eager tech-product aficionados. At the GTC event, Nvidia unveiled its cutting-edge Blackwell graphics processing unit architecture.
The company expects Blackwell to “power a new era of computing.” Nvidia CEO Jensen Huang declared that Blackwell is the “engine to power” the “new industrial revolution” of generative AI.
This isn’t empty boasting. Per TheStreet, Nvidia stated that Blackwell will “enable organizations to build and run real-time generative AI on trillion-parameter large language models.”
Plus, the company claims that Blackwell will achieve this “at up to 25 times less cost and energy consumption than its predecessor.”
With the new Blackwell architecture coming down the pipeline, Nvidia’s already ultrapowerful H100 chips could soon be yesterday’s news. It’s another example of Nvidia topping itself, since evidently no competitor can top Nvidia.
Be an Overachiever Investor With Nvidia Stock
If you can be any type of investor, why not be an overachiever investor? It’s entirely possible if you stick to overachieving companies like Nvidia. As we’ve seen, the demand for AI-compatible processors is intense — and Nvidia is stepping up to the plate with top-tier products.
Blackwell will be Nvidia’s latest game changer in the AI-hardware category. After that, we’ll all just have to wait and see what amazing products Nvidia unveils next.
So, there’s no wait for Nvidia’s upcoming earnings event to get involved. Investors should conduct their due diligence and take action when they’re ready to do so, and Nvidia stock absolutely deserves a confident “A” grade .
On the date of publication, Louis Navellier had a long position in NVDA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
04:09 AM EDT, 05/13/2024 (MT Newswires) -- Nvidia (NVDA) said Monday it will use its open-source CUDA-Q platform to power quantum processing units at national supercomputing centers in Germany, Japan and Poland.
Germany's Julich Supercomputing Center is installing a quantum processing unit that uses Nvidia's GH200 Grace Hopper chip for chemical simulations and other uses.
Japan's National Institute of Advanced Industrial Science and Technology's ABCI-Q supercomputer is also using Nvidia Hopper architecture to research applications in AI, energy and biology, the company said.
Poland's Poznan Supercomputing and Networking Center recently installed two photonic quantum processing units connected to a new partition powered by Nvidia's Hopper for use in applications that include biology, chemistry and machine learning.
Nvidia also said Monday that nine new supercomputers worldwide are using its Grace Hopper chips for processing power, including new supercomputers coming online in Illinois, Texas, France, Poland, Switzerland, Germany and Japan.
NVIDIA Grace Hopper Ignites New Era of AI Supercomputing
NVDA | 4 hours ago
From Climate and Weather to Scientific Exploration, Switzerland’s Alps Supercomputer, France’s EXA1-HE Supercomputer and Others to Deliver 200 Exaflops of AI for Groundbreaking Research Using Energy-Efficient Grace-Based Systems
HAMBURG, Germany, May 12, 2024 (GLOBE NEWSWIRE) -- ISC—Driving a fundamental shift in the high-performance computing industry toward AI-powered systems, NVIDIA today announced nine new supercomputers worldwide are using NVIDIA Grace Hopper™ Superchips to speed scientific research and discovery. Combined, the systems deliver 200 exaflops, or 200 quintillion calculations per second, of energy-efficient AI processing power.
New Grace Hopper-based supercomputers coming online include EXA1-HE, in France, from CEA and Eviden; Helios at Academic Computer Centre Cyfronet, in Poland, from Hewlett Packard Enterprise (HPE); Alps at the Swiss National Supercomputing Centre, from HPE; JUPITER at the Jülich Supercomputing Centre, in Germany; DeltaAI at the National Center for Supercomputing Applications at the University of Illinois Urbana-Champaign; and Miyabi at Japan’s Joint Center for Advanced High Performance Computing — established between the Center for Computational Sciences at the University of Tsukuba and the Information Technology Center at the University of Tokyo.
CEA, the French Alternative Energies and Atomic Energy Commission, and Eviden, an Atos Group company, in April announced the delivery of the EXA1-HE supercomputer, based on Eviden’s BullSequana XH3000 technology. The BullSequana XH3000 architecture offers a new, patented warm-water cooling system, while the EXA1-HE is equipped with 477 compute nodes based on Grace Hopper.
“AI is accelerating research into climate change, speeding drug discovery and leading to breakthroughs in dozens of other fields,” said Ian Buck, vice president of hyperscale and HPC at NVIDIA. “NVIDIA Grace Hopper-powered systems are becoming an essential part of HPC for their ability to transform industries while driving better energy efficiency.”
In addition, Isambard-AI and Isambard 3 from the University of Bristol in the U.K. and systems at the Los Alamos National Laboratory and the Texas Advanced Computing Center in the U.S. join a growing wave of NVIDIA Arm-based supercomputers using Grace CPU Superchips and the Grace Hopper platform.
Sovereign AI
The drive to construct new, more efficient, AI-based supercomputers is accelerating as countries around the world recognize the strategic and cultural importance of sovereign AI — investing in domestically owned and hosted data, infrastructure and workforces to foster innovation.
Bringing together the Arm-based NVIDIA Grace CPU and NVIDIA Hopper™ GPU architectures using NVIDIA NVLink®-C2C interconnect technology, GH200 serves as the engine behind scientific supercomputing centers across the globe. Many centers are planning to go from system installation to real science in months instead of years.
Isambard-AI phase one consists of an HPE Cray EX2500 supercomputer with 168 NVIDIA GH200 Superchips, making it one of the most efficient supercomputers ever built. When the remaining 5,280 NVIDIA Grace Hopper Superchips arrive at the University of Bristol’s National Composites Centre this summer, it will increase performance by about 32x.
“Isambard-AI positions the U.K. as a global leader in AI, and will help foster open science innovation both domestically and internationally,” said Simon McIntosh-Smith, professor of high-performance computing at the University of Bristol. “Working with NVIDIA, we delivered phase one of the project in record time, and when completed this summer will see a massive jump in performance to advance data analytics, drug discovery, climate research and many more areas.”
Accelerating Scientific Discovery
NVIDIA’s accelerated computing platform comprises NVIDIA Hopper architecture-based GPUs, NVIDIA Grace CPU Superchips, NVIDIA Grace Hopper Superchips, NVIDIA Quantum-2 InfiniBand networking and a full suite of NVIDIA AI and HPC software.
Nvidia rivals gold as shield against inflation, survey shows
THE biggest US tech stocks are not only a bet on innovation but also a possible hedge against inflation, according to some respondents in the latest Bloomberg Markets Live (MLIV) Pulse survey.
Gold, the haven of choice for decades, is still seen as the best safeguard against the risk of rising prices, according to 46 per cent of survey participants. But nearly a third said the tech behemoths are their first pick for the role.
Why this stock picker only recently bought NVIDIA (and why he's never owned Tesla)
In this episode of The Pitch, concentration is the game and working out the winners among the leaders is the challenge.
Hans Lee
Livewire Markets
There are market darlings, and then there is NVIDIA (NASDAQ: NVDA). The company, which designs chips for powering graphics and high-performance computing, is widely considered to be the company that will have the first and largest advantage in harnessing the artificial intelligence (AI) mega-trend. Its stock price is up over 70% year-to-date and in the past 12 months, it's up well over 190%.
If you've tried to bet against this stock either through deliberate shorting or just not owning it, it's been a very painful ride.
It's certainly been like that for Chris Smith and his team at Intermede Investment Partners. Intermede's portfolio, which has owned most of the Magnificent Seven for a long time, prides itself on finding high-quality global companies that can deliver consistent, double-digit earnings growth. But they never owned NVIDIA until two months ago.
So naturally, the question begs - Why?
"The more we thought about it, the more we felt comfortable with the fact that this is just more than a hardware company making a fast chip. There is a whole ecosystem around that and barriers to entry are quite high," Smith said before adding:
"We had been behind the curve on estimating the potential for this business and we decided to go with our upside case rather than our base case."
In this edition of The Pitch, Smith shares his thoughts on the Magnificent Seven and stock market concentration more generally. He also gives his views on some of the fund's portfolio holdings and recent earnings. Finally, he shares his thoughts on the two Mag7 companies they don't own - Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA).
EDITED TRANSCRIPT
Does all this concentration (and the hype around these stocks) worry you?
It is a different era, I would say. The Magnificent Seven are making up a larger and larger portion of the market. When we started 10 years ago, there wasn't a security in the market that was more than 2% of the benchmark. Now, we have several that are close to 5%. It has changed the way we manage the portfolio to some extent.
I think when you look at that Magnificent Seven group, most of them are delivering. It is justified by the moves that they've had in stock price. You have earnings growth growing mid-teens or better for most of them. Some are growing well into the 20's. You have revenue growth well into double digits for most of them.
You have multiples on some of these stocks that are below market average, less than 20 times on Meta (NASDAQ: META), and less than 20 times on Alphabet (NASDAQ: GOOGL). There's still pretty good value across the space. We do invest in quite a number of them.
Does this new paradigm you speak of change the way you perceive them as investment opportunities?
It does make it very critical that you have a view of all of these companies. Certainly missing out on one of them that's doing quite well can be very painful as a manager. There are a couple of examples that we might talk about. Nvidia (NASDAQ: NVDA) is one of them, that we didn't have last year. You do have to be very aware of these key names, and you have to have a view.
What has been the most interesting takeaway from earnings season so far?
I think the tech earnings have been interesting. You've seen revenue growth going quite well. You've seen it increasing contribution from AI. There's a lot of concern about all this capital going in. What kind of contribution are we getting? I think Microsoft (NASDAQ: MSFT) demonstrated that a lot of their Azure growth is coming from AI. They're seeing a good boost from that.
Amazon (NASDAQ: AMZN) as well as seeing some good uptick from AI. You saw an increase in AWS growth, the cloud part of the business, that they just reported very recently. That's partly driven by AI. I think it's pretty amazing. But you've seen CAPEX budgets that are already expected to be growing very significantly this year were pushed even higher for some of the big companies like Microsoft and Alphabet. More than 50% growth year over year, coming off already quite high levels. A lot of that is going to AI and that's the sort of thing we've been following.
Meta (NASDAQ: META) was the one that was viewed as a disappointment. They have been having this year of efficiency that's given them a lot of benefits. You saw a lot of margin expansion. Now, they're investing again, this time in AI. Hopefully, that turns out into something. It is a name that we have in the portfolio.
You only just bought NVIDIA in the last couple of months. Why did you buy it now?
It is a bit painful to buy a stock that's up that much, no question about that. But the more we thought about it, the more we felt comfortable with the fact that it's more than just a hardware company making a fast chip at the moment. There's a whole ecosystem around that. Barriers to entry in this space we think are quite high. The growth can be sustained given we've seen CAPEX budgets being increased on top of increases from a couple of months ago. That money is flowing to NVIDIA.
We had been behind the curve, I would say, on estimating the potential for this business. We decided to go with our upside case on the stock rather than our base case. On that basis, we had a 20% plus upside, which is what we look for to enter a name. We are still below benchmark weight, so we are being a little bit conservative on that. But it is one of our favourite names in the sector. We felt we couldn't keep betting against it, and effectively being short the stock.
NVIDIA Sparks Rumors to Beat Rivals in Mellanox Buyout Race
Zacks Equity Research
11 March 2019
Per Israeli newspaper Calcalist’s recent report, NVIDIA NVDA is in talks to acquire fabless semiconductor firm Mellanox Technologies MLNX.
Further, Reuters estimates this deal to be valued at around $7 billion in cash, details of which are expected to be confirmed soon.
The chip giant has reportedly outbid Intel INTC, Microsoft MSFT and Xilinx in the auction of Mellanox. Intel reportedly bid $6 billion for Mellanox in January 2019 but current reports claim NVIDIA to have offered 10% more.
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According to Reuters, this biggest-ever acquisition by NVIDIA would help the company boost its business of chip making for datacenters, thereby reducing its heavy dependence on the gaming industry.
Why Mellanox
Mellanox with a current market cap of $5.93 billion provides interconnect products and solutions based on the Ethernet and InfiniBand technologies. Its customers include datacenter owners and also the companies, which build datacenter. Notable clients include Alibaba, JD.com, Dell and Hewlett Packard Enterprise.
In 2018, Mellanox’s revenues of $1.088 billion grew 26% year over year. While Ethernet’s soared 54% to approximately $618 million, InfiniBand’s increased 8% year over year to $438 million.
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Mellanox is benefiting from solid demand for its Gigabit EDR solutions in machine learning, artificial intelligence, high-performance computing, database, storage and more. Further, robust demand for Mellanox’s InfiniBand solutions is a key catalyst.
The company is one of the major suppliers of 25, 40, 50 and 100GB Ethernet adapters, switches and cables to the market today. In fact, per Crehan research estimates, Mellanox had a market share of 69% in the high-speed Ethernet adapter business during third-quarter 2018, leaving Intel, Broadcom and other peers trailing.
What it Means for NVIDIA
Having impressed investors with a stellar performance in the last couple of years, NVIDIA has been witnessing a downward trend since last October, thanks to a slowdown in its gaming segment.
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Post the crypto mining bubble burst, NVIDIA was overly optimistic that demand for its GPUs will shift from crypto miners to gamers, which will boost its gaming business revenues and offset the revenue loss from miners. However, contrary to its belief, demand from gamers failed to grow rapidly to compensate the soft cryptocurrency-related requirement, taking a severe toll on the company.
The company’s focus on branching out its operations in other markets is therefore prudent in our view. According to NVIDIA, its High-Performance Computing (HPC) and datacenters are expected to witness tremendous growth over the long haul.
The acquisition of Israel-based Mellanox would thus help NVIDIA consolidate its datacenter business. Notably, for the past nine years, the company has been active in Israel by either selling its processors locally or buying stakes in startups or setting up a research and development unit.
NVIDIA opened an R&D center in Israel during 2017 that currently employs 20-30 people. The company announced last October that it plans to launch a new research center in Tel Aviv, which will focus on AI.
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NVIDIA Corporation Revenue (TTM)
NVIDIA Corporation Revenue (TTM) | NVIDIA Corporation Quote
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Tech’s AI Spending Spree May Be Bigger Than You Think
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Tech’s AI Spending Spree May Be Bigger Than You Think
It’s early days for AI. So, naturally, there are lots of unanswered questions – and one of the big ones is about how much companies will spend on the technology. A team of researchers at Morgan Stanley attempted to answer that, by checking out the capital expenditure (capex) plans of some of the world’s biggest spenders.
Now, the investment bank was already bullish on AI before the latest quarterly results dropped. But it really leaned into its livestock ways after checking out the capex plans of the market’s biggest players – think: Microsoft, Meta, Alphabet, Amazon, and Tesla. When it refreshed its model with the updated data, it concluded that a cloud capex “supercycle” is set to begin this year.
Morgan Stanley’s “cloud capex tracker” now predicts 44% spending growth in 2024 from last year – well outpacing the 26% the model was forecasting just a couple of months ago. And it’s a positively massive acceleration from the tiny 2% growth in spending seen in 2023. That’s a big deal for the supply chain.
Top ten cloud providers (excluding Amazon): capital expenditures annual growth estimates, before and after the companies’ recent quarterly results. Note that Amazon was left out here because much of its spending goes toward building its ginormous logistics centers. Sources: company earnings reports, Refinitiv, Morgan Stanley.
Top ten cloud providers (excluding Amazon): capital expenditures annual growth estimates, before and after the companies’ recent quarterly results. Note that Amazon was left out here because much of its spending goes toward building its ginormous logistics centers. Sources: company earnings reports, Refinitiv, Morgan Stanley.
And it’s not exactly a one-time spending spree: further growth is expected through 2030. Morgan Stanley’s model forecasts that 2030’s global cloud AI capex will reach $300 billion – with $230 billion spent on semiconductors and $70 billion on hardware.
The planned increased spending is good for Nvidia and other companies across the AI supply chain. That’s a huge part of the reason why Nvidia has been moving sharply higher ahead of its May 22 quarterly update, as traders increasingly expect big things. Let’s look at some of the capex plans from the big spenders:
Meta’s planning to spend as much as $40 billion this year, up from its previous $37 billion plan, as the company speeds its investment to support its AI roadmap. And the Facebook and Instagram parent expects this to be the beginning of a multiyear cycle.
Microsoft’s total capex was $14 billion in the first quarter, and the company said it expects it to rise significantly next quarter and next year.
Alphabet’s not exactly tightening its purse strings – Google’s parent said its quarterly capex will match or exceed the first quarter’s $12 billion, suggesting an increase of at least 50%, compared to last year.