Nvidia, why are you so good?
Today I'm going to talk to you about a company that I love and hate at the same time – NVIDIA.
Nvidia, which you must be familiar with, is the world's largest manufacturer of graphics processing units (GPUs) and artificial intelligence (AI) chips, and one of the most valuable chip companies in the world. Its products are widely used in gaming, data centers, cloud computing, autonomous driving, medical care, education and other fields, and can be said to be a bright star in the technology industry.
However, NVIDIA's recent performance really surprised and shocked me. Just yesterday, after the U.S. stock market, Nvidia's stock price rose by 187%, reaching a staggering 791$12, an all-time high. Its market value also increased by 36.2 billion US dollars, or about 260.2 billion yuan, breaking through the $2 trillion mark and becoming the sixth largest company in the world after Apple, Microsoft, Amazon, Google and Tesla.
You may ask, why has Nvidia risen so high? Is there anything special about it? How good is its performance? What does it look like in the future? Today, I will give you an analysis of the mystery and charm of NVIDIA.
First, let's take a look at NVIDIA's performance. Nvidia's revenue in the fourth quarter of 2023 reached $6.8 billion, up 61% year-over-year, far exceeding market expectations of $4.7 billion. Its net profit also reached $2.5 billion, up 53% year-on-year, also beating market expectations of $1.6 billion. Such a performance can be said to be very eye-catching and amazing.
The main drivers of NVIDIA's performance growth come from its two core businesses: data centers and gaming. Revenue from the data center business reached $2.7 billion, up 97% year-over-year and accounted for 40% of total revenue. Revenue from the gaming business reached $3.3 billion, up 67% year-over-year and accounting for 49% of total revenue. These two major businesses are NVIDIA's fist products and its core competitiveness.
The data center business is an area that NVIDIA has vigorously developed in recent years, mainly using its powerful GPU and AI chips to provide high-performance computing capabilities for cloud computing, big data, machine learning, deep learning, etc. NVIDIA's data center business has become the world's largest data center chip manufacturer, with a market share of more than 90%, far exceeding competitors such as Intel and AMD. NVIDIA's data center business is also its business with the most growth potential, because with the popularization and development of cloud computing and AI, the demand for high-performance computing will be increasing, and NVIDIA's GPU and AI chips are the best choice to meet this demand.
The gaming business is NVIDIA's traditional strength, and it is also its largest revenue**. NVIDIA's gaming business mainly uses its leading GPU technology to provide gamers with a high-definition, smooth, and realistic gaming experience. NVIDIA's gaming business has become the world's largest game chip manufacturer, with a market share of more than 80%, far exceeding competitors such as AMD and Intel. NVIDIA's gaming business is also its most stable business, because with the continuous innovation and development of the game industry, the demand for high-performance graphics will continue to grow, and NVIDIA's GPU technology is the best choice to meet this demand.
In addition to data centers and games, Nvidia also has other businesses, such as professional vision, automotive, OEM, etc., although the proportion of revenue is not high, but there is also a certain growth and contribution. NVIDIA's business layout can be said to be very comprehensive and balanced, with high-growth data centers and AI, stable games and graphics, and potential professional vision and automobiles, forming a strong business ecosystem, giving NVIDIA an unshakable position and advantages in various fields.
Second, let's take a look at NVIDIA's ability to innovate. Nvidia's founder and CEO, Jensen Huang, is a world-renowned technology leader and innovator, known as the "King of Chips" and one of the richest people in the world, with a personal fortune of $69.3 billion, ranking 20th on the list of the world's richest people. Huang's vision and strategy are the soul and engine of NVIDIA, and he has led LinkedIn to continuously innovate and break through, making NVIDIA a leader in the technology industry.
NVIDIA's innovation ability is mainly reflected in its products and technologies. NVIDIA's products, whether GPUs or AI chips, are the benchmark and leaders in the industry, and their performance, efficiency, stability, compatibility, etc., are unmatched. NVIDIA's technology, whether it is graphics rendering, deep learning, ray tracing, neural networks, etc., is a pioneer and leader in the industry, and their innovation, application, promotion, etc., are unparalleled. NVIDIA's products and technologies provide strong support and driving force for all walks of life, making NVIDIA a disruptor and changer in the technology industry.
NVIDIA's ability to innovate is also reflected in its mergers and acquisitions and partnerships. Over the past few years, Nvidia has made a number of major mergers and acquisitions and collaborations to expand its business scope and market presence. For example, Nvidia announced in 2021 the $40 billion acquisition of British chip design company Arm, one of the largest mergers and acquisitions in the history of the tech industry, which, if successful, will allow Nvidia to master the core technology of global chip design and further consolidate its supremacy in the chip field. NVIDIA has also established in-depth cooperative relations with many well-known cloud computing, automotive, gaming and other companies around the world