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pww.comNVIDIA Corporation - Shareholder-Analyst Call - NasdaqGS:NVDA

NasdaqGS:NVDA

Jen-Hsun Huang;Co-Founder, CEO, President & Director [Executives] 💬

Jen-Hsun Huang, the Co-Founder, CEO, President, and Director of NVIDIA, discussed a variety of topics during the shareholder/analyst call on September 20, 2022. Here is a detailed summary of his remarks:

Omniverse

  • Components of Omniverse Platform:

    • Simulation Platform (OVX): The first-generation prototype has been developed, and the volume scale-out is based on the second-generation OVX2, powered by AD104 GPUs, CX7, and BlueField 3.
    • Omniverse Applications: These span the entire range of design, build, and operation processes within a company, including design, manufacturing, and operations.
    • Omniverse Nucleus: This is a new type of database designed to be interactive and shared, acting as a single source of truth for 3D data and metadata.

  • Contributions to Revenue and Profitability:

    • Omniverse is expected to contribute to revenue growth and profitability, though it is a long-term strategy and its contributions are still nascent.

New Infrastructure as a Service Offerings

  • BioNeMo and Omniverse Cloud:
    • These offerings aim to simplify access to NVIDIA's platforms and accelerate customer time-to-market with large language model training, tuning, and deployment.
    • The business model for these services will be consumption-based, similar to cloud service providers' models, but with value-added services that reduce costs and improve effectiveness.

Accelerated Computing

  • Full Stack Approach:
    • Jen-Hsun emphasized that accelerated computing requires a full stack approach due to the limitations of traditional transistor scaling and the end of Moore's Law's predictability.
    • NVIDIA's architecture is available in every cloud, and the company has strong partnerships with cloud service providers (CSPs).

Autonomous Driving and Robotics

  • Transition from Atlan to Thor:
    • The decision to transition was driven by the significant advancements in the three key processors (GPU, CPU, and Tensor cores) over the past two years.
    • NVIDIA did not want to wait another two years to incorporate these advancements into their automotive and robotics platforms.

Hopper GPU

  • Performance and Pricing:
    • Hopper offers a 5x increase in throughput and a 3x reduction in total cost of ownership compared to the previous generation (Ampere).
    • While Hopper's price is higher than Ampere's, the value proposition is strong enough to justify the increased cost.
    • The ramp-up of Hopper is on track, with some shipments expected in the current quarter and the majority in the next quarter.

Gaming and Ada Lovelace Architecture

  • Competitive Landscape:
    • NVIDIA is significantly ahead in ray tracing technology, with a three-generation lead and advanced AI capabilities.
    • The Ada Lovelace architecture represents a substantial leap forward, offering unprecedented real-time rendering capabilities.
  • Inventory Correction:
    • NVIDIA took steps to prepare the channel for the Ada Lovelace launch by reducing the sale of Ampere GPUs to clear excess inventory.
    • The company expects a robust ramp-up of Ada GPUs starting in the next quarter.

Grace CPU

  • Ambitions:
    • NVIDIA's Grace CPU is aimed at addressing specific challenges in large-scale AI applications, such as recommender systems.
    • While Grace is not intended to compete across the entire server CPU market, it excels in specialized segments like high-performance computing and data analytics.

Software Opportunities in China

  • Restrictions and Opportunities:
    • Specific restrictions on hardware exports to China do not impact software opportunities.
    • NVIDIA sees potential to accelerate software opportunities by hosting compute and data itself, potentially mitigating hardware restrictions.

Full Stack Computing

  • Transformation of NVIDIA:
    • NVIDIA has evolved into a full-stack computing company, integrating hardware, software, networking, and storage.
    • The analogy to Microsoft and Intel in the PC era is apt, as NVIDIA provides a comprehensive platform for accelerated computing.

Gaming Business and Pricing

  • Value Proposition:
    • The value proposition of Ada Lovelace is exceptional, with significant advancements in neural rendering and other technologies.
    • Pricing for Ada GPUs is higher than the previous generation, but comparable in terms of gross margins.

Closing Remarks

  • Product Cycles:
    • Multiple product cycles were kicked off, including Ada for gaming and workstation, Hopper for AI, and Orin for automotive and robotics.
  • Full Stack Computing Approach:
    • NVIDIA has developed four key platforms: RTX for graphics, scientific computing, AI, and Omniverse.
  • Cloud Services:
    • NVIDIA has extended AI and Omniverse into the cloud to democratize access to complex workloads.
  • Partnerships:
    • NVIDIA announced a partnership with Deloitte to bring AI and Omniverse to the world's enterprises.

These points summarize Jen-Hsun Huang's remarks during the shareholder/analyst call, covering various aspects of NVIDIA's business, technology, and strategic direction.

Simona Jankowski [Former Vice President of Investor Relations] 💬

Simona Jankowski, the Former Vice President of Investor Relations at NVIDIA, made the following statements during the Shareholder/Analyst Call:

  1. Opening Remarks:

    • Welcomed everyone to the GTC (presumably the NVIDIA GPU Technology Conference).
    • Mentioned that attendees had the chance to see CEO Jen-Hsun Huang's news-packed keynote.
    • Noted that several press releases and blogs detailing the day's announcements were published.
    • Announced an open Q&A session with CEO Jen-Hsun Huang and CFO Colette Kress.

  2. Safe Harbor Statement:

    • Reminded participants that the discussion may include forward-looking statements based on current expectations.
    • Stated that actual results might differ materially due to risks and uncertainties.
    • Advised attendees to refer to NVIDIA's most recent Forms 10-K and 10-Q and any Form 8-K filings for a discussion of factors that could affect future financial results and business.
    • Clarified that all statements were made as of the date of the call and that NVIDIA assumed no obligation to update them unless required by law.

  3. Q&A Session Instructions:

    • Instructed attendees to use the "raise hand" feature on Zoom if they wished to ask a question.
    • Asked attendees to unmute themselves when called upon.

  4. Introduction of Questions:

    • Introduced each analyst who was asking a question, such as Toshiya Hari from Goldman Sachs and Timothy Michael Arcuri from UBS Investment Bank.

  5. Closing Remarks:

    • Thanked Jen-Hsun Huang for his comprehensive overview of the key announcements, including new chips, software, services, and partnerships.
    • Acknowledged the significant ground covered during the call.
    • Invited Jen-Hsun to make any closing comments.

Simona Jankowski's role was primarily to facilitate the call, introduce speakers, provide instructions, and manage the Q&A session.