NVDA - Embedded Expectations Analysis - 2020 01 08
NVIDIA Corporation (NVDA:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 34.4x Uniform P/E. At these levels, the market is pricing in expectations for Uniform ROA to remain near all-time highs, and management generated an excitement marker when talking about their GPU Technology Conference, and is confident in their autonomous vehicle platform and inference business growthSpecifically, management generated an excitement marker when saying their GPU Technology Conference was sold out with over 3,500 attendees. In addition, they are confident USPS is adopting AI technology from NVIDIA and that RTX GPUs drive more than 2/3 of their desktop gaming GPU revenue. Moreover, they are confident their end-to-end platform enables customers to develop, test, and operate autonomous vehicles, and they are confident in the growth of inference, as well as the size and diversity of inference models
NVIDIA engages in graphics processing unit (GPU)-based visual computing and accelerated computing platforms. The company has two segments, GPU and Tegra Processor, which are based on a single underlying architecture. The company's GPU product brands are aimed at markets including GeForce for gamers; Quadro for designers; Tesla and DGX for artificial intelligence data scientists and big data researchers; and GRID for cloud-based visual computing users. The company's Tegra brand integrates an entire computer onto a single chip, and incorporates GPUs and multi-core CPUs to drive supercomputing for autonomous robots, drones, and cars, as well as for game consoles and mobile gaming and entertainment devices.
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