Nvidia is time traveler? :P (2019)

Looks like Gross Margin went up. I guess all mining profit did not go to shops. Looks like nVidia did increase pricing too to get part of the pie. But 64,5%... What a number. It means that they invest $1000 to make product which they sell for $2800.

Aokromes:

Nvidia is time traveler? 😛 (2019)

Common practice with many companies accounting procedures. I believe the books are not closed until 2019 to account for taxes and final figures.

impressive.

Fox2232:

Looks like Gross Margin went up. I guess all mining profit did not go to shops. Looks like nVidia did increase pricing too to get part of the pie. But 64,5%... What a number. It means that they invest $1000 to make product which they sell for $2800.

mmm... not really. They invest much more than that. Gross Margin = (Revenue - Cost of Goods Sold) / Revenue , and these Costs do not account for all kinds of spending: R&D, marketing, salaries, rent, debt interest, taxes. You want to look at Net Margin to come up with the real profitability. Which is still enormously high atm, sitting at 38% for this quarter. Comfortably beating Intel, which traditionally has not been the case. Historically Nvidia has been somewhere in the semiconductor industry average 15-20%. So yeah huge profits, $1.3B per Quarter is simply insane, considering 2yr ago that was their ENTIRE REVENUE. Insane profit driven by crypto no doubt, but also by Datacenter which grew 4x times in 2 years, and revenue wise it's now sitting where Gaming used to be 2 years ago. But proly with much larger profit. Auto is crap like I always claimed it be 😀 Someone needs to stop Nvidia: They are $150 billion company now. In comparison Intel is $270B, Google 650B, Apple almost trillion $.

Noisiv:

Someone needs to stop Nvidia: They are $150 billion company now. In comparison Intel is $270B, Google 650B, Apple almost trillion $.

Insane growth in short time. While poor AMD around $12 bil market cap (even that is huge improvement vs 2 years ago $2 bil).

The Gross Margin is absolutely insane and is due to the complete lack of competition. It's not a good time to be a gamer and I really hope that Intel would start making consumer cards to help push down the prices.

Netherwind:

The Gross Margin is absolutely insane and is due to the complete lack of competition. It's not a good time to be a gamer and I really hope that Intel would start making consumer cards to help push down the prices.

it's unbearably esy for me 🙂 a) It's summer - plenty of non gaming activities, and I hate lighting my room with heavy gaming during summer b) I don't even contemplate on buying at these ridoncolous prices, and with the new arch just around the corner

Noisiv:

So yeah huge profits, $1.3B per Quarter is simply insane, considering 2yr ago that was their ENTIRE REVENUE. Insane profit driven by crypto no doubt, but also by Datacenter which grew 4x times in 2 years, and revenue wise it's now sitting where Gaming used to be 2 years ago. But proly with much larger profit. Auto is crap like I always claimed it be 😀

Yah, their profit is almost entirely growth in datacenter, it's not like they are doubling R&D for datacenter oriented technologies, the majority is applicable to the other (gaming/datacenter). So when they get massive in growth in one it's almost entirely going to be profit. With google, amazon and microsoft now offering V100 instances, they've clearly sold a metric ton of Tesla cards that they are charging over 7K+ a pop for.

What's interesting is that Nvidia made more money from the crypto boom than AMD. I guess it isn't too surprising when you consider that miners gobbled up their high-end cards as well (some even used their Titan cards). This revelation seems to be weighing on the stock price, which is down despite the earnings beat. Seems investors are concerned about how much of their profits came from cryptos and worried that it's about to end.

D3M1G0D:

This revelation seems to be weighing on the stock price, which is down despite the earnings beat. Seems investors are concerned about how much of their profits came from cryptos and worried that it's about to end.

As a gamer and investor that is exactly what I see. We all know a more realistic truth. Everything from 1070s and up were used for mining which Nvidia doesn't want to admit to. We also know PCs were built (i7/i8, Ryzen) with the sole intention of mining. Getting a 1080ti a couple months back was almost impossible. Nvidia's wise but misleading position is to limit mining revenue to a much smaller hardware space that is accurate so it doesn't murder their stock price. There won't be any hiding this likely in the next Q and the drop is investors cashing out now, myself included. AMD, INTEL, and Nvidia have had a hell of a run and there was a lot of money made in owning them. Time to cash out and sit on the funds, buy back after the inevitable bad Q(s) that are coming. Also, the PE for AMD is insane, even at roughly $12 per share presently they are way too expensive vs Intel and Nvidia. Until AMD can show some decent earnings per share, which likely means raising the price on their CPUs, they should drop back down to $8 or less.

Jorge_pc:

As a gamer and investor that is exactly what I see. We all know a more realistic truth. Everything from 1070s and up were used for mining which Nvidia doesn't want to admit to. We also know PCs were built (i7/i8, Ryzen) with the sole intention of mining. Getting a 1080ti a couple months back was almost impossible. Nvidia's wise but misleading position is to limit mining revenue to a much smaller hardware space that is accurate so it doesn't murder their stock price. There won't be any hiding this likely in the next Q and the drop is investors cashing out now, myself included. AMD, INTEL, and Nvidia have had a hell of a run and there was a lot of money made in owning them. Time to cash out and sit on the funds, buy back after the inevitable bad Q(s) that are coming. Also, the PE for AMD is insane, even at roughly $12 per share presently they are way too expensive vs Intel and Nvidia. Until AMD can show some decent earnings per share, which likely means raising the price on their CPUs, they should drop back down to $8 or less.

I'm still holding onto my stock. I don't think Nvidia is hiding anything regarding their crypto earnings, nor do I see a reason to discredit their forecast. Remember that the number Nvidia reported was much higher than what investors were expecting - if Nvidia's intention was to minimize their crypto business they would have reported smaller figures. Also, the stock hasn't dropped by much today (down 1.3% as of now, AMD is down 1.8% by comparison) so it's not like investors are exiting en-mass.

Crypto share in this quarter was stronger than anticipated. In numbers: 270M reported under OEM, which accounts for most of crypto sales. For the next quarter they are guiding crypto to only 1/3 of this quarter, with the same total revenue (actually 100M less, but we know they always beat the outlook). Does that mean we are finally out of the woods...