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[winjer]

NVIDIA Adds More to Its Market Capitalization in a Single Day Than Its Cumulative Profits Since 2019

On a day that saw the second-largest bank failure in US history, NVIDIA shares reached a fresh 1-year high as the AI mania continues.

wccftech.com

This brings us to the core of today’s topic. NVIDIA shares rose 4 percent yesterday, adding around $29 billion to the company’s market capitalization.

For context, NVIDIA’s cumulative net income since 2019 only amounts to $25 billion. As an illustration, the company reported a net income of $4.141 billion in 2019, $2.796 billion in 2020, $4.332 billion in 2021, $9.752 billion in 2022, and $4.368 billion in 2023. Do note that the fourth quarter of NVIDIA’s fiscal year 2023 ended on the 29th of January, 2023. Together, this cumulative net income since the fiscal year 2019 amounts to $25.389 billion.

Concurrently, investor hype continues to build over NVIDIA’s AI Foundation Services – a veritable suite of cloud-based offerings that enable clients to create and run customized generative AI models. Powered by NVIDIA’s AI supercomputers under the ambit of the DGX Cloud, the AI Foundation Services can be classified into three main categories: NeMo for text-based generative AI applications, Picasso for image-based AI applications, and BioNeMo for applications related to protein structure, sequencing, and molecular docking. Additionally, NVIDIA has also introduced NeMo Guardrails, an open-source toolkit that is designed to ensure security for Large Language Models (LLMs) via a range of programable constraints.

While Intel is breaking records going down, NVidia is breaking records going up.

 

[Draugoth]

All thanks to scalpers

 

[winjer]

All thanks to scalpers

Not really, it's due to their dominance in the AI market. And the future is AI, so a lot of investors want to get in that train.

 

[lh032]

so they are not dropping the price of graphic cards then.

 

[AlteredForms]

 

[murmulis]

If only AMD finally released something that can compete. Most AI projects on github are nvidia-only.

 

[Buggy Loop]

https://www.tradingview.com/news/investorplace:2b8679c5c094b:0/

Yeah, AI is gonna be a huge moneymaker. Nvidia is a deal right now compared to its long term value when AI will be everywhere

 

[murmulis]

so they are not dropping the price of graphic cards then.

Why should they?
What are you going to do? Buy AMD?

I really hate that even RTX 4090ti has only 24 GB VRAM.

 

[Magic Carpet]

Did they ditch the dollar and get that sweet Yuan?

 

[64bitmodels]

you think that games powered by AI will start becoming nvidia exclusive? We might have hardware exclusive games for the first time in like.... 2 decades

 

[SolidQ]

If only AMD finally released something that can compete.

AMD just buyed Xilinx, so need time yet, and don't forget AMD need fight on both sides CPU/GPU, and need more money to fight

 

[Thirty7ven]

Nothing to do with games, wrong side of the forum.

 

[winjer]

Nothing to do with games, wrong side of the forum.

You never heard of DLSS?
Or games being made with the help of AI. Ubisoft using AI to write dialogs. New AI systems for in-game NPCs. Sony using AI for animations. ChatGPT writing programs.

 

[Thirty7ven]

You never heard of DLSS?
Or games being made with the help of AI. Ubisoft using AI to write dialogs. New AI systems for in-game NPCs. Sony using AI for animations. ChatGPT writing programs.

Ugh…. So if Autodesk shares get a bump you’ll post a thread about it here?

Come on. The story in the OP doesn’t directly relate to gaming therefore it doesn’t belong here.

 

[lh032]

Why should they?
What are you going to do? Buy AMD?

I really hate that even RTX 4090ti has only 24 GB VRAM.

oh dont worry, they will definitely launch higher Vram models with even premium price in the future. Its a $$$ opportunity for Nvidia since AMD sucks

 

[winjer]

Ugh…. So if Autodesk shares get a bump you’ll post a thread about it here?

Come on. The story in the OP doesn’t directly relate to gaming therefore it doesn’t belong here.

No one is creating threads about autodesk. Don't bother with stupid whataboutism.

 

[Thirty7ven]

No one is creating threads about autodesk. Don't bother with stupid whataboutism.

Whataboutism? You don’t know what you’re talking about. Again.

 

[Miyazaki’s Slave]

If only AMD finally released something that can compete. Most AI projects on github are nvidia-only.

AMD makes the CPUS that drive all the hardware that process the LLM's. Nvidia is producing the GPU's and AMD is producing the CPU's...Intel is looking dire right now.

Also Nvidia gives ZERO shits about their gaming customers. They have been on this AI tip since the early 2010's and have created their hardware around making AI possible.

AI currently: Microsoft (CCT) + AMD + Nvida

 

[AlteredForms]

Whataboutism? You don’t know what you’re talking about. Again.

I'm not even sure what your point is. Nvidia, a company that designs graphics cards for the gaming market are in the wrong forum? I'm puzzled, should we putting this figures data in off-topic instead?

 

[murmulis]

you think that games powered by AI will start becoming nvidia exclusive? We might have hardware exclusive games for the first time in like.... 2 decades

That's very likely unless AMD finally releases something that can compete with CUDA.

oh dont worry, they will definitely launch higher Vram models with even premium price in the future. Its a $$$ opportunity for Nvidia since AMD sucks

They already have data center GPUs with 40 and 80 GB VRAM. And their price is ridiculous.

 

[Buggy Loop]

If only AMD finally released something that can compete. Most AI projects on github are nvidia-only.

CUDA is literally everywhere, nearly 15 years with no competition. The lead time also for AI means that there's a huge community to help and debug. Even when AMD will get competing tensor cores and the software side, it'll start from scratch with the community. Imagine trying to find help initially, gonna be a tough hill to climb.

This ML researcher painted the uphill battle. It's not insurmountable, but that's assuming Nvidia doesn't just break ahead with another innovation in ML speeds. Lagging behind Nvidia just by a few years is enough for them to almost eat everything at the table and leave the crumbs for AMD.

https://timdettmers.com/2023/01/30/...GPUs_ROCm_ever_catch_up_with_NVIDIA_GPUs_CUDA

 

[SmokedMeat]

This is why Nvidia can half ass their GPUs at premium prices.

They don’t need you or me, anymore.

 

[winjer]

AMD is not the only chip maker out there. Not even in the AI space.
Intel is also trying to get in the market. And Tenstorrent. IBM. And dozens of AI startups.
But the leader, by a huge margin is NVidia.

 

[kvltus lvlzvs]

AI sure is seeming to be the next big thing, like crypto was last season. How long till we have Blockchain gpt?

 

[SlimySnake]

Nvidia crashed last year. My brother went in and bought the shares a couple of years ago because of their machine learning stuff but then lost all his profits after the crash last year.

Looks like it was $329 last year. Crashed to $150 earlier this year and now upto to $289 today. lol Stock market is a scam.

 

[Buggy Loop]

This is why Nvidia can half ass their GPUs at premium prices.

They don’t need you or me, anymore.

Nor does AMD really

Flagship GPUs are basically the gimped "template" of higher margin products or the basis technology for lower tier products with higher margins.

For AMD it's consoles, servers, etc.

For Nvidia it's professionals, servers, AI / driving

No company cares for ~1% market share flagship GPUs. That's for the EPEEN online wars

 

[James Sawyer Ford]

Nvidia crashed last year. My brother went in and bought the shares a couple of years ago because of their machine learning stuff but then lost all his profits after the crash last year.

Looks like it was $329 last year. Crashed to $150 earlier this year and now upto to $289 today. lol Stock market is a scam.

Individual stocks can be

NVidia is just a meme stock based on hope and dreams

The valuation is absurd and anyone buying this garbage will get burned. It’s pure speculation

 

[SmokedMeat]

Nor does AMD really

Flagship GPUs are basically the gimped "template" of higher margin products or the basis technology for lower tier products with higher margins.

For AMD it's consoles, servers, etc.

For Nvidia it's professionals, servers, AI / driving

No company cares for ~1% market share flagship GPUs. That's for the EPEEN online wars

I’m hoping Intel cares.

 

[Buggy Loop]

I’m hoping Intel cares.

Intel aiming for mid range is the best hope i have for coming years. They better not fuck it up or just axe the GPU division.

 

[LordOfChaos]

Slightly eyebrow raising, but it's all funny money, easy come easy go. 162x price to earnings ratio. Nvidia is a highly important company and will continue to grow in importance, but I ain't touching that, we also see huge slumps when things slow in these sky high PE stocks. Like, Tesla is at 47x, a high value granted to a company expecting to grow in the double digits. For a dollar of Nvidia earnings you pay 3.4x more for Nvidia than that. Worth it? You decide.

 

[hlm666]

There's been alot of focus about chatgpt and image creation in AI lately but there has been some impressive work in AI music aswell. Some of the older stuff i've heard was lacking and a little souless but this one kinda made me raise an eyebrow. You may not like the genre but this is completely AI made (except the video) and is impressive/scarey depending on your view.

 

[TheDreadLord]

AI for physics will be next big step up in the industry and NVidia is among the top players there.

 

[GHG]

And just like that, 24 hours later, it's gone.

 

[Ozriel]

Nor does AMD really

Flagship GPUs are basically the gimped "template" of higher margin products or the basis technology for lower tier products with higher margins.

For AMD it's consoles, servers, etc.

For Nvidia it's professionals, servers, AI / driving

No company cares for ~1% market share flagship GPUs. That's for the EPEEN online wars

Im not sure AMD makes THAT much money from console SoCs, though. Margins are higher on desktop GPUs

 

[Buggy Loop]

Im not sure AMD makes THAT much money from console SoCs, though. Margins are higher on desktop GPUs

But they sell a fraction in quantities

Imagine, what’s in the top list of GPUs on steam hardware survey (I know… survey, but what else do we have for a snapshot of global market), RDNA’s 2 combined GPUs in the list is 1.01%, and they aren’t the flagship cards, they’re mid range and those are lower margin.

Even we we extrapolate ~2% from cards hidden in the sub 0.25% range, and that every steam owner would match survey (which it’s not, but a survey is like that..) , it would be less than 3 million units for a whole series.

It’s nothing compared to console APU production.

Nvidia having way more share must make bank on the likes of the 3060 selling for ridiculous prices even now and having 10% of steam hardware survey. Flagships are still pathetically low.

 

[sono]

Good for them

But why so many models

 

[ChorizoPicozo]

yisus fucking Christ we are all fucked.

 

[poppabk]

And just like that, 24 hours later, it's gone.

AI is the future - Buy Buy Buy
But maybe it isn't - Sell Sell Sell

 

[jonnyp]

There's way too little competition in the semiconductor industry.

 

[iQuasarLV]

24 hours later back to where they were.

 

[Badlucktroll]

Is it pronounced N-vidia or Na-vidia

 

[Baki]

Not financial advice. But I personally think Nvidia is way overvalued and the correction is going to be painful.

 

[Jinzo Prime]

And just like that, 24 hours later, it's gone.

No way, they can't have lost that much money that fast

 

[GHG]

No way, they can't have lost that much money that fast

They didn't lose any money, that's not how it works. But welcome to the greatest ponzi scheme known to man.

 

[iQuasarLV]

No way, they can't have lost that much money that fast

Google Nvidia stock and set the result to 1 month.

They lost it, as a lot of people sell when a hot streak comes on. Every buyer has to buy it from someone. This just means more stocks sold in the same 24 hours than were bought since the price overall went down.

 

[LordOfChaos]

Slightly eyebrow raising, but it's all funny money, easy come easy go. 162x price to earnings ratio. Nvidia is a highly important company and will continue to grow in importance, but I ain't touching that, we also see huge slumps when things slow in these sky high PE stocks. Like, Tesla is at 47x, a high value granted to a company expecting to grow in the double digits. For a dollar of Nvidia earnings you pay 3.4x more for Nvidia than that. Worth it? You decide.

 

[GHG]

Google Nvidia stock and set the result to 1 month.

They lost it, as a lot of people sell when a hot streak comes on. Every buyer has to buy it from someone. This just means more stocks sold in the same 24 hours than were bought since the price overall went down.

Not entirely true, 57 million shares traded yesterday (it went straight up) vs 40 million traded today (straight down).

It's not as straightforward as "more sold today vs yesterday", there were simply less buy entries hitting the order book today plus the climax of a gamma squeeze.

 

[iQuasarLV]

Not entirely true, 57 million shares traded yesterday (it went straight up) vs 40 million traded today (straight down).

It's not as straightforward as "more sold today vs yesterday", there were simply less buy entries hitting the order book today plus the climax of a gamma squeeze.

I don't live on the stock market, so my kindergarten level understanding of the trades is what it is.

But yea I thought the same. The exact same bubble squeeze that we saw in 2020 with mining. Just Nvidia being the snake oil salesman while all the moron investors are trying to get in early.

The thing that will kill it is when the general public sees that AI isn't going to rule every single aspect of their lives, and then the market responds to equilibrium by moving on to the next buzzword to convince people is the future.

 

[Come On Tars]

Buying a video card is feeling like buying a home since covid. Nothing gets better. Waiting it out is feeling like a fools errand.

 

[Buggy Loop]

Fucking hell, it surpassed $300, major jump.

Too inflated compared to value though, this can’t be sustainable..