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pww.comNVIDIA Corporation Presents at 17th Annual Tech-Auto Forum, Jan-08-2019 07:50 AM - NasdaqGS:NVDA

NasdaqGS:NVDA

Colette M. Kress [Executive VP & CFO] 💬

Colette M. Kress, the Executive Vice President and Chief Financial Officer of NVIDIA Corporation, provided insights on several topics during her presentation at the 17th Annual Tech_Auto Forum:

  1. Introduction: She thanked JPMorgan for inviting NVIDIA to kick off the conference and mentioned that the team has been present since Sunday.

  2. Turing Architecture and RTX 2060 Launch:

    • NVIDIA announced the RTX 2060, bringing the Turing architecture to mainstream gamers at a price point of $350.
    • The RTX 2060 supports ray tracing, which is considered the "holy grail" of graphics, enabling realistic rendering of light and shadows.
    • The RTX 2060 is aimed at gamers who previously owned the 970, 1060, or similar cards, providing an opportunity for a significant upgrade.
    • Bundles with the RTX 2060 include popular games like Anthem and Battlefield V.

  3. Notebook Gaming with Turing:

    • NVIDIA introduced Turing-powered notebooks, leveraging the Max-Q design for thin and light devices without sacrificing performance.
    • Over 40 different Turing-equipped gaming notebooks were showcased at CES, representing a significant increase in offerings.

  4. G-SYNC Expansion:

    • NVIDIA extended its G-SYNC monitor frame sync technology to virtually all monitors, enhancing the gaming experience on a wider range of displays.

  5. DLSS and AI in Gaming:

    • DLSS (Deep Learning Super Sampling) leverages AI and the Tensor Cores in Turing to improve image quality and performance in games.
    • DLSS can infer details between pixels to enhance visual fidelity and frame rates.

  6. Upgrade Cycle for Midrange Gamers:

    • About one-third of NVIDIA's installed base is on midrange platforms like the GTX 960, 970, and 1060.
    • The RTX 2060 offers a significant performance boost, motivating upgrades from these older cards.
    • The upgrade cycle is influenced by the combination of performance gains and the availability of ray-traced content.

  7. Notebook Gaming Market:

    • Notebook gaming is one of the fastest-growing segments of NVIDIA's business, driven by the popularity of thin and light designs.
    • The exact size of the notebook installed base is unclear, but it represents a significant and growing portion of the overall gaming market.

  8. Channel Inventory Management:

    • NVIDIA addressed excess channel inventory of midrange Pascal cards by pausing shipments and working with partners to normalize prices.
    • Progress is on track, with the goal of reaching normalized inventory levels by the end of the quarter.
    • Promotions and pricing adjustments during holiday periods, including Black Friday and Cyber Monday, have helped stabilize prices.

  9. Visibility into China:

    • NVIDIA has a balanced global distribution of its installed base, with approximately one-third each in North America, Europe, and Asia Pacific/China.
    • The holiday season, including Chinese New Year, is a critical period for gaming sales.
    • NVIDIA is well-positioned for the Chinese holiday season with the RTX 2060 launch.

  10. High-End Enthusiast Class Segment:

    • The RTX 2070, 2080, and 2080 Ti have received positive reviews and offer significant performance improvements.
    • More ray-tracing capable games are expected to release, enhancing the value proposition of these high-end cards.

  11. Healthcare and Industry Verticals:

    • NVIDIA is expanding its presence in industry-specific verticals, including healthcare, leveraging its expertise in AI and accelerated computing.

    • NVIDIA has a long history in healthcare, contributing to faster and more detailed medical imaging.

    • The company focuses on developing solutions that can significantly impact industries with large data sets and complex problems, such as robotics and manufacturing.