NVIDIA
NASDAQ: NVDA 216.14 5.27% yesterday reported record earnings for the
third quarter ended Oct. 29, 2017, from $ 2.64 billion, up 32 percent
from $ 2.00 billion in the previous year, and up 18 percent from $ 2.23 billion in the previous quarter. Looks like nobody can stop NVIDIA's bullish climb to a star (and an increased P / E rate). The company completely destroyed analyst expectations by EPS 94 cents and $ 2.36 billion in revenue. So, the eternal question reminds us of his head, whether it eventually exhausts or we can expect much more in the place to come. Before we explore the fundamentals, let's look at the financial summaries.
- Record revenue of $2.64 billion, up 32 percent from a year ago
- Record GAAP EPS of $1.33, up 60 percent from a year ago
- Growth across all platforms
- Quarterly cash dividend raised 7 percent to $0.15 per share. Company intends to return $1.25 billion to shareholders in fiscal 2019
NVIDIA NASDASQ: NVDA 216.14 5.27% recorded growth across all market segments: Given 109% growth in Datacenter and 25% in Gaming this quarter
GAAP earnings per diluted share for the quarter was $ 1.33, up 60 percent from $ 0.83 a year ago and up 45 percent from $ 0.92 in the previous quarter. Diluted non-GAAP earnings per share was $ 1.33, also a record, up 41 percent from $ 0.94 a year earlier and up 32 percent from $ 1.01 in the previous quarter.
Take - Very bullish overall indicator, solid growth in the automotive segment is needed to trigger the next level of ascent
NVIDIA blew out all expectations and there seems to be no end in sight at this bull barrel. But
one thing to keep in mind is that the current level of P / E traded in
stocks is very high, which means that when security is exhausted,
investors can expect a market correction to the P / E level of the
industry. price. So the question becomes, will this trend continue? Well, let's look at the breakdown segment first
This is a truly phenomenal quarter and the company managed to record growth in every corporate segment. The
hero of the result is none other than Datacenter which is now the
second largest segment in the company and also on the way to be a big
contributor to all revenue. It is worth noting
also that unlike Gaming revenues that are vulnerable to market
fluctuations and sentiments, the Datacenter segment is a much more
reliable revenue stream and this is reflected in market reaction (NVDA
stock prices jumped a few dollars after the report was released).
The
company is clearly making serious progress on the Datacenter side and
it definitely has an almost perfect gaming market grip. I feel that in order to trigger the next level of ascent, NVIDIA must post solid growth in the automotive sector. It will be one of the biggest battlefields for future silicone home designs and a solid grip from an early age will be helpful. The
company managed to book an increase in revenue of 13% - and in other
similar companies that would be great - but not as we expect from the
only provider of complete DNN + Visual Processing processing packages
for autonomous cars on the market. now.This
is something that NVIDIA might achieve next quarter due to the fact
that it has recently launched a Pegasus board that is several times more
powerful than the latest generation of NVIDIA proprietary technologies
on the market and provides multiple generations performance boots
combined into one. Depending
on how quickly a company can get a design win, it could be the catalyst
needed to trigger a slowing growth in the Autonomy segment - something
that is needed to justify the next level of P / E.
The less fire from Intel and AMD
There's also something else I need to talk about and that's why AMD and Intel are positioning themselves against NVIDIA that sends out the dangers that companies present. It is a bullish indicator and a bearish indicator simultaneously - because although it shows that the company has made considerable progress it can be taken seriously by the competition, the other two entities in triopoly collude together can make things difficult for the green. Kaby Lake - G lineup is Intel's latest joint venture with AMD to create a processor that has Intel CPU and integrated Radeon GPU. AMD has also just lost King Koduri to Intel and that means the company is ready to enter the discrete GPU market, which will compete directly with NVIDIA.
With the position we see from Intel and AMD, it is clear that NVIDIA will see increased competition in its main segment. The KBL-G series poses a serious threat to the design win in the mid-market segment which is one of the most populous. These are people who do not want a laptop for the purpose of playing solely but still love some of the ability to play games. From what we've seen from the KBL-G chip so far, it's beating the low end NVIDIA processors like the MX150.
">The higher end peer spends a lot of effort, and sharing the same
package (in KBL-G) has the added benefit of improving power efficiency.Similarly, Intel's entering the discrete graphics market will pose a threat to NVIDIA's dominance in the deep learning sector. This is the learning age of machines and almost all machine learning takes place on GPGPU-based platforms such as CuDNN. With
Intel quickly gaining the ability to produce this coveted piece of
technology, it is clear that this is a serious loss for NVIDIA. Their
CEO stated that Intel would not be able to produce a brand new until at
least 3 years, but we would not be so sure that since licensing deals
with AMD could jump start from Intel costs to edge computing and DNN
Space
NVIDIA NASDAQ: NVDA 216.14 5.27% Q3 FY18 GAAP and Non-GAAP Quarterly Results
Fourth Quarter of Fiscal 2018 Outlook
Our outlook for the fourth quarter of fiscal 2018 is as follows:
Revenue is expected to be $2.65 billion, plus or minus two percent.
GAAP and non-GAAP gross margins are expected to be 59.7 percent and 60.0 percent, respectively, plus or minus 50 basis points.
GAAP and non-GAAP operating expenses are expected to be approximately $722 million and $600 million, respectively.
GAAP and non-GAAP other income and expense are both expected to be nominal.GAAP and non-GAAP tax rates are both expected to be 17.5 percent, plus or minus one percent, excluding any discrete items. GAAP discrete items include excess tax benefits or deficiencies related to stock-based compensation, which we expect to generate variability on a quarter by quarter basis.
Capital expenditures are expected to be approximately $75 million to $85 million, excluding the planned purchase of the property containing our new Santa Clara campus building.
Revenue is expected to be $2.65 billion, plus or minus two percent.
GAAP and non-GAAP gross margins are expected to be 59.7 percent and 60.0 percent, respectively, plus or minus 50 basis points.
GAAP and non-GAAP operating expenses are expected to be approximately $722 million and $600 million, respectively.
GAAP and non-GAAP other income and expense are both expected to be nominal.GAAP and non-GAAP tax rates are both expected to be 17.5 percent, plus or minus one percent, excluding any discrete items. GAAP discrete items include excess tax benefits or deficiencies related to stock-based compensation, which we expect to generate variability on a quarter by quarter basis.
Capital expenditures are expected to be approximately $75 million to $85 million, excluding the planned purchase of the property containing our new Santa Clara campus building.
Source : https://wccftech.com