NVIDIA: Poised To Be World’s Biggest B2B Company

NVIDIA is a pioneer in accelerated computing, involved in AI and the metaverse affecting the world’s largest industries. As of July, 2023 NVIDIA has a market cap of $1.047 Trillion, making it the first chip maker to hit $1 Tn market cap and world’s 6^th most valuable company by market capitalization.

For more than 30 years, scientists, researchers, developers, and creators have been using NVIDIA technology. As we speak, more than 4 million developers are creating thousands of applications for accelerated computing. More than 40,000 companies use NVIDIA AI technologies, with 15,000 global startups in NVIDIA Inception.

Solid Culture of Innovation

Some of the tech-driven segments NVIDIA is invested in include: autonomous machines – NVIDIA Isaac, platform for accelerating and enhancing Robotics, Computer Graphics, 3D Internet, Advanced Modelling, Applications for Astrophysics, Climate Science and Energy Exploration. In total, more than 35,000 companies are building on the NVIDIA AI platform.

NVIDIA research and development expenditures for the twelve months ending April 30, 2023 were $7.596B, a 32.5% increase year-over-year. NVIDIA annual research and development expenses for 2023 were $7.339B, a 39.31% increase from 2022.

“Nothing makes me prouder than the incredible people who have made NVIDIA the company it is today. Together, we continue to drive advances in AI, HPC, gaming, creative design, autonomous vehicles, and robotics.”

Jensen Huang, President and CEO of NVIDIA Corporation

Flexibility Built Right in

The company’s head office is in Santa Clara, California. To boost its competitiveness,

NVIDIA Corporation does not have its own manufacturing facilities and therefore works according to the fabless principle. This means that the company designs and sells the hardware and semiconductor chips but does not manufacture the silicon wafers, or chips, used in its products. Instead, it outsources the fabrication to a manufacturing plant or foundry to locations in Taiwan and China, where skilled labor is plentiful and cheap, which keeps production costs low and return on investment high.

Final Analysis: NVIDIA Poised for Growth

As a tech giant, the NVIDIA business model is based on GPU (Graphics Processing Units) sales. This graphics company continues to generate most of its revenue from selling these specialized chips, which serve many industries, including the gaming, robotics, automotive, and professional visualization industries.

The gradual incorporation of AI capabilities is behind the acceleration of demand for NVIDIA’s main product – GPU. The robust growth has seen the company’s stock soar by 284.56% year-to-date (as of July 4^th, 2023). NVIDIA recently announced the development of a new AI supercomputer platform DGX GH200, boosting its position as the front-runner of the AI revolution. This announcement came shortly after NVIDIA announced a promising second-quarter revenue outlook of $11bn.

Prepared by team of analysts of Tradematics