Nvidia shares skyrocket after great financial results

[Burpo]

http://www.vrworld.com/2015/08/08/nvidia-shares-skyrocket-after-great-financial-results/

"Today was a day for memory for NVIDIA, as the company’s meteoric stock rise got them on top of Fortune 100 stock moves, ahead of Tesla Motors, Inc. The reason for the growth of the stock, are both second quarter results and upbeat announcement of third quarter earnings.

Following the trading close on Thursday, NVIDIA announced its results which were on record levels, even though the company had some serious write offs ($167 million) due to Icera modem business and SHIELD tablet recall; $1.15 billion represents their best second quarter result, up from $1.10 a year earlier. Net income was only 26 million, but that came after a massive $400 million share repurchase and a $52 million cash dividend for its shareholders. When you combine that with the first quarter, in first six months of their fiscal year, they returned over half a billion USD ($551 million) to its shareholders, and announced further cash dividend of $0.09 per share to be paid of to all shareholders on notice on August 20th, 2015.
When asked what was the reason for stellar performance, the company cited gaming and automotive revenue as largest revenue growers. That is unsurprising, since NVIDIA is putting every bit of focus on those markets. We would not be surprised if the company reaches 10 million Tegra automotive chips by the end of the year, something most of their competitors claimed it wasn’t possible (or true). Furthermore, their upside is viewed through the fact that the automotive Business Unit attracted over 50 customers for their DRIVE PX product line for autonomous driving cars.

“Visual computing continues to grow in importance, making our growth opportunities more exciting than ever,” Jen-Hsun Huang, CEO of NVIDIA was quoted saying, as well as citing prospects for future growth; “Our gaming platforms continue to be fueled by growth in multiple vectors — new technologies like 4K and VR, blockbuster games with amazing production values, and increasing worldwide fan engagement in e-sports. We’re working with more than 50 companies that are exploring NVIDIA DRIVE to enable self-driving cars. And our GPU-accelerated data center platform continues to make great strides in some of today’s most important computing initiatives — cloud-based virtualization and high performance computing applications like deep learning.”

 

[pepone1234]

At least they are doing something useful with tegra

 

[ShintaiDK]

Geforce sales is very strong. So its clear the marketshift continues in the dGPU segment in a rapid pace.

 

[NTMBK]

Geforce sales is very strong. So its clear the marketshift continues in the dGPU segment in a rapid pace.

Yup, AMD desperately need a full lineup refresh. There's only so long they can keep flogging the same Pitcairn cards.

 

[Azix]

Yup, AMD desperately need a full lineup refresh. There's only so long they can keep flogging the same Pitcairn cards.

Their GPU lineup is fine. They need to get strong on CPU again and they seem to be in a position to capitalize on professional applications for their CPUs and GPUs. CPU market is pretty dang massive, hence why intel is so big. AMD needs a bigger cut, gain what they had stolen from them years ago.

edit: their GPU line is fine, what they need to tackle is advertising. eg. they should go after china hard now that china is supposedly moving towards high end GPUs. The red might help them there. Also change the default perceptions people have about nvidia being better even when they are worse in some areas.

Nvidia doing auto is interesting and it does make sense to try breaking into that. I am sure nvidia is charging a good bit for those. AMD might be in consoles but they can't overprice like nvidia could in a car. What's an extra $2000 for a $200 feature in a $40,000 car? AMD should also look around for applications for their existing tech.

 

[ShintaiDK]

Their GPU line isnt fine..

 

[Spanners]

Their GPU line isnt fine..

Pointless to argue over the term "fine" but there are segments of the market that they compete, vs the 960/970/980 they have viable alternatives. The 980ti and 750ti are mostly peerless.

You'd have to agree they the GPU line is more "fine" than the CPU line?

 

[Keysplayr]

Pointless to argue over the term "fine" but there are segments of the market that they compete, vs the 960/970/980 they have viable alternatives. The 980ti and 750ti are mostly peerless.

You'd have to agree they the GPU line is more "fine" than the CPU line?

Simply because one line is worse than the other, doesn't make the less worse one "fine".

And @ Azix, please stop pulling dollar numbers out of thin air. Unless of course you have links to back them up. Thanks.

 

[tviceman]

Their GPU line isnt fine..

You're right, it's great. The year old 750 TI is still 33% faster than Intel's upcoming new Iris Pro,and next year's finfet GPU's should more than double the perf/w, putting a new low end dGPU at >2.66x over Skylake Iris Pro.

EDIT: sorry I see your comment was in reference to AMD.

 

[tviceman]

Crazy that Nvidia is forecasting improved revenue with no new product releases while AMD is forecasting flat to lower revenue immediately after releasing an entirely new brand of graphics cards AND probably getting the next Nintendo chip.

 

[tviceman]

Also change the default perceptions people have about nvidia being better even when they are worse in some areas.

The only thing Nvidia is worse at is multi-GPU scaling, which is such a small niche subset of the niche high end. Efficiency? Nvidia wins. Perf/mm2? Nvidia wins. Perf/transistor? Nvidia wins. No one at Nvidia is losing sleep over multi GPU scaling.

 

[nvgpu]

Maxwell Quadro M5000, Quadro M4000 and other Maxwell Quadro products are launching this week at Siggraph 2015, GTX 950 launching on 17th, no new products?

http://s2015.siggraph.org/

 

[Keysplayr]

The only thing Nvidia is worse at is multi-GPU scaling, which is such a small niche subset of the niche high end. Efficiency? Nvidia wins. Perf/mm2? Nvidia wins. Perf/transistor? Nvidia wins. No one at Nvidia is losing sleep over multi GPU scaling.

And that disadvantage will also erode as NV moves to NVlink for multi-GPU communications and data transfer.

 

[crisium]

So people are buying Nvidia products today since NVLink might exist on yet-unreleased products?

 

[Genx87]

So people are buying Nvidia products today since NVLink might exist on yet-unreleased products?

How did you arrive at that conclusion?

 

[Keysplayr]

So people are buying Nvidia products today since NVLink might exist on yet-unreleased products?

Looks like you didn't understand my post. Or it didn't fit into your criteria of what should be posted in this thread. :hmm:

 

[Keysplayr]

How did you arrive at that conclusion?

It's how they interpret things. So bizarre.

 

[crisium]

Yes, it doesn't fit the criteria (at least this didn't do over the head of both of you). The thread was about Nvidia shares rising. I suppose it is possible that some investors have been pleased with the NVLink presentations so far and it has played a part. But otherwise I fear the typical "wars" derailment.

 

[Ketchup]

Do you all remember when AMD had a faster CPU AND a faster GPU? They were actually growing.

Now they have a weaker CPU AND a weaker GPU. Gee, I wonder why they aren't growing.

I am glad they have consoles, but this is still a huge drop from what they were doing. All I can say is good for Nvidia. Glad to see them doing well with their ingenuity!

 

[ShintaiDK]

You'd have to agree they the GPU line is more "fine" than the CPU line?

Oh yes. But its just a definition of worse or worst.

 

[Sabrewings]

Nice to see that my $650 went to good use. Thanks for the GM200 discount, Nvidia.

 

[Azix]

Simply because one line is worse than the other, doesn't make the less worse one "fine".

And @ Azix, please stop pulling dollar numbers out of thin air. Unless of course you have links to back them up. Thanks.

lmao. Those numbers were meant to illustrate a point, not to be taken as some insiders revelation. To make it easy for you, its easier to charge more on something like a car than a console.

The only thing Nvidia is worse at is multi-GPU scaling, which is such a small niche subset of the niche high end. Efficiency? Nvidia wins. Perf/mm2? Nvidia wins. Perf/transistor? Nvidia wins. No one at Nvidia is losing sleep over multi GPU scaling.

AMDs GPUs are fine. I don't care if you need them to significantly outpace nvidia to acknowledge the fact that

a fury beats a 980
a 390x trades with a 980
a 390 trades with a 970 (290x beats)
a 380 beats a 960
AMD has a million cards below that faster than a 750ti

The MAIN reason nvidia does well on GPUs is perception. Even in the freesync vs Gsync test it was assumed by some that G-sync was better. Just like that you get a bias. Same with GPUs. even if nvidia had a worse design, they would often be considered better. Maybe it's fortune, maybe its good PR or some lingering mistakes and wins from the past for both companies. eg. one could argue nvidias GPUs are toys because they are more cut down than AMDs. get this idea to cement in people's heads and you get an idea of the power of company/product image.

Its good to not rely too heavily on GPUs for gaming. When it comes down to it nvidia is still a lightweight in terms of expertise and they seem to be trying to break into/create big industries. The only specialty they have is GPUs? Applying that in unique ways looks good to investors. The danger of this can be seen with AMD and their expertise in CPUs though. they were there, but someone bigger beat them down with a big stick and they burned tons of cash as a result. If nvidia faces a bigger competitor similar to intel they could burn investments and end up in a bad situation. If GPUs are a unique solution to this feature then unlikely, but I could imagine intel wanting in. "intel inside" your car with discounts if you don't deal with nvidia.

http://www.intel.com/content/www/us...ce-systems-self-driving-technology-paper.html

of course they are already.

 

[Yuriman]

I've bought only AMD GPUs for my main PC (though have put plenty of NV GPUs in secondary rigs) since the Radeon 8500 (14 years?), but lately I've been more interested in moving SFF and making things quieter, cooler, and more efficient, and AMD's GPUs just don't compete in these metrics. If I were to build from scratch right now, I'd very likely opt for NV, despite my general distaste for proprietary and closed standards.

I don't think I'm alone in the desire to go small, cool, and quiet.

 

[SimianR]

I've bought only AMD GPUs for my main PC (though have put plenty of NV GPUs in secondary rigs) since the Radeon 8500 (14 years?), but lately I've been more interested in moving SFF and making things quieter, cooler, and more efficient, and AMD's GPUs just don't compete in these metrics. If I were to build from scratch right now, I'd very likely opt for NV, despite my general distaste for proprietary and closed standards.

I don't think I'm alone in the desire to go small, cool, and quiet.

The R9 Nano might be of some interest to you then.

 

[AnandThenMan]

19.95 to 23.xx is not exactly skyrocketing lol.