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Advanced AI Capabilities to Drive NVIDIA (NVDA) Q1 Earnings
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For the last two years, NVIDIA Corporation (NVDA - Free Report) has been impressing investors with its stellar performance, wherein the company’s quarterly revenues have been advancing at a rate more than 50%, earnings have tripled and shares have displayed more than six-fold growth, consequently. Investors are expecting this trend to continue, with the graphic chipmaker putting up another overwhelming performance in first-quarter fiscal 2019. It is scheduled to report its quarterly figures on May 10.
This Santa Clara, CA-based chip-making giant is well known for its high-performance graphics processing units (GPUs) used by PC gamers. However, for the last two years, NVIDIA’s strategy of applying its GPUs in the artificial intelligence (AI) models has helped it expand footprint in several fast-growing fields, including self-driving cars and datacenter.
AI, which is a global rage these days, has long been touted as the next big thing in the technology sector, with its usage rising gradually.
Let’s delve deeper and find out how AI is supporting NVIDIA in other growing markets.
Strong GPU Adoption in Datacenters Driving Revenues
NVIDIA is one of the leading players in selling GPUs to data-center service providers. Its client list includes Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) and Alphabet.
Demand for NVIDIA’s data-center-focused products has escalated due to an increase in datacenter production around the world, and management has successfully marketed its solutions to compete with industry leaders like Intel. Per the Consensus Estimate, the segment is likely to be up 67.5% from the year-ago quarter level and reach $685 million in the fiscal first quarter.
Click here to know how the company’s overall Q1 performance is expected to be.
Uber’s driverless vehicle test mishap in March this year shocked the entire industry and prompted NVIDIA to suspend test drives for all its driverless vehicles, dragging down its share price. However, we believe this to have had the least impact on its quarterly results.
For the successful operation of autonomous vehicles, a powerful AI supercomputing platform is required. And NVIDIA has successfully innovated the required GPU and became the front runner in providing technology for self-driving vehicles.
It should be noted that NVIDIA forayed into the autonomous vehicle and other automotive electronics space by launching a computer vision system at the Consumer Electronics Show (CES) in 2015. The company hasn’t looked back since then and has been continuously bringing in new and more advanced technologies in the space.
At the beginning of 2016, NVIDIA rolled out DRIVE PX 2 — the world’s most powerful engine for in-vehicle AI. Later in September that year, the graphic-chip behemoth unveiled an AI supercomputer chip designed for self-driving cars called Xavier at its GPU Technology Conference (GTC) in Amsterdam.
The company’s AI-enabled GPUs have helped it win several contracts from the auto and component manufacturers. At the CES 2018, the company announced that it has such contracts from more than 300 companies that show NVIDIA’s growing dominance in providing AI platforms which will power future vehicles.
The company’s cutting-edge technology has helped it become the leading player in providing AI for applications to autonomous driving vehicles, outpacing other competitors, such as Intel and Advanced Micro Devices (AMD - Free Report) , in terms of growth.
Continued contract wins have brought in additional revenues. It should be noted that the company’s Automotive segment’s contribution to the total revenues was just $54 million at the end of fiscal 2015, but it is expected to reach approximately $575 million at the end of fiscal 2018. Per the Zacks Consensus Estimate, the Automotive segment’s revenues will be approximately $138 million in the first quarter.
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Advanced AI Capabilities to Drive NVIDIA (NVDA) Q1 Earnings
For the last two years, NVIDIA Corporation (NVDA - Free Report) has been impressing investors with its stellar performance, wherein the company’s quarterly revenues have been advancing at a rate more than 50%, earnings have tripled and shares have displayed more than six-fold growth, consequently. Investors are expecting this trend to continue, with the graphic chipmaker putting up another overwhelming performance in first-quarter fiscal 2019. It is scheduled to report its quarterly figures on May 10.
This Santa Clara, CA-based chip-making giant is well known for its high-performance graphics processing units (GPUs) used by PC gamers. However, for the last two years, NVIDIA’s strategy of applying its GPUs in the artificial intelligence (AI) models has helped it expand footprint in several fast-growing fields, including self-driving cars and datacenter.
AI, which is a global rage these days, has long been touted as the next big thing in the technology sector, with its usage rising gradually.
Let’s delve deeper and find out how AI is supporting NVIDIA in other growing markets.
Strong GPU Adoption in Datacenters Driving Revenues
NVIDIA is one of the leading players in selling GPUs to data-center service providers. Its client list includes Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) and Alphabet.
Demand for NVIDIA’s data-center-focused products has escalated due to an increase in datacenter production around the world, and management has successfully marketed its solutions to compete with industry leaders like Intel. Per the Consensus Estimate, the segment is likely to be up 67.5% from the year-ago quarter level and reach $685 million in the fiscal first quarter.
Click here to know how the company’s overall Q1 performance is expected to be.
NVIDIA Corporation Price and EPS Surprise
NVIDIA Corporation Price and EPS Surprise | NVIDIA Corporation Quote
Market Leader in the Self-Driving AI Space
Uber’s driverless vehicle test mishap in March this year shocked the entire industry and prompted NVIDIA to suspend test drives for all its driverless vehicles, dragging down its share price. However, we believe this to have had the least impact on its quarterly results.
For the successful operation of autonomous vehicles, a powerful AI supercomputing platform is required. And NVIDIA has successfully innovated the required GPU and became the front runner in providing technology for self-driving vehicles.
It should be noted that NVIDIA forayed into the autonomous vehicle and other automotive electronics space by launching a computer vision system at the Consumer Electronics Show (CES) in 2015. The company hasn’t looked back since then and has been continuously bringing in new and more advanced technologies in the space.
At the beginning of 2016, NVIDIA rolled out DRIVE PX 2 — the world’s most powerful engine for in-vehicle AI. Later in September that year, the graphic-chip behemoth unveiled an AI supercomputer chip designed for self-driving cars called Xavier at its GPU Technology Conference (GTC) in Amsterdam.
The company’s AI-enabled GPUs have helped it win several contracts from the auto and component manufacturers. At the CES 2018, the company announced that it has such contracts from more than 300 companies that show NVIDIA’s growing dominance in providing AI platforms which will power future vehicles.
The company’s cutting-edge technology has helped it become the leading player in providing AI for applications to autonomous driving vehicles, outpacing other competitors, such as Intel and Advanced Micro Devices (AMD - Free Report) , in terms of growth.
Continued contract wins have brought in additional revenues. It should be noted that the company’s Automotive segment’s contribution to the total revenues was just $54 million at the end of fiscal 2015, but it is expected to reach approximately $575 million at the end of fiscal 2018. Per the Zacks Consensus Estimate, the Automotive segment’s revenues will be approximately $138 million in the first quarter.
NVIDIA carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>