Apologies for another Nvidia post but couldn’t help but put Bloomberg on yesterday and this morning, fascinating to see the impact one company is having on technology, financial markets, and industry in general..
Some talking points that grabbed my attention-
Nvidia is valued @ $3T- circa 6% of S&P, 11% of Nasdaq, 14% of Philadelphia semiconductor index
Nvidia has posted 6 consecutive quarters of triple digit revenue growth..
Nvidia has a circa 92% market share in data centre GPUs
50% of Nvidia’s revenue come from 5 companies
Meta spends roughly 40% of their CapEx on Nvidia
Meta will have circa 600,000 h100 GPUs by the end of ‘24.
H100 GPU costs $30-40k each.
Microsoft is Nvidia’s largest customer and will account for circa 20% of Nvidia’s revenue in FY24
AMD is Nvidia’s biggest competitor but only accounts for roughly 5% of market share.
Nvidia is supporting circa 15,000-20,000 Generative AI startups!!
Big tech uses the term ”Nvidia Tax”.
As a result Microsoft, Google, Amazon and Meta are developing their own in-house GPUs to support AI related tasks attempting to reduce reliance on Nvidia.
✈️Nvidia plans on diversifying their clients by selling to governments and traditional industry e.g. pharmaceuticals, ship building, agriculture, aerospace, automotive etc..
Nvidia’s new GPU is called “Blackwell” and performed 4x the H100 GPU, this is scheduled to be released in q4 ‘24 and will accommodate trillion parameter LLMs!!
❓The one question that needs to be answered-
To what extent have recent investments in Nvidia technology been deployed in use cases that generate sustainable and tangible monetisation?