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Before NVIDIA disclosed its quarterly report, the stock price first entered the beast mode.Counting from the low point in mid-March, Nvidia’s stock price rose by 80% in one breath, not only breaking through the historical high, but also stunned Wall Street analysts-repeatedly raised target prices have been punctured by the market in a short time.
However, after early Nvidia disclosed the results of the first quarter of fiscal year 2021, although the net profit data was quite strong, the market’s enthusiasm seems to have overdrawn before “521”, and the stock price fell slightly by 0.43% after the market.
Although the market response is cold, but Nvidia’s financial report is indeed good.
Data center business revenue sets a historical record
Nvidia’s history is to continuously create history.
According to data from the quarterly report for fiscal year 2021, Nvidia earned $ 3.08 billion in revenue in the past quarter, a year-on-year increase of 38.7%, and exceeded market expectations of $ 2.992 billion.Realized a net profit of 917 million US dollars, an increase of 133% compared with the same period last year.Gross profit margin reached 65.1%, setting a record in recent years!
In the past, Nvidia’s revenue structure was mainly divided into GPU business and Tegra processor business, but from FY2021, Nvidia reclassified reportable business into graphics and computer and network business main lines, which may be in order toMellanox, acquired for US $ 7 billion, will be better incorporated into the NVIDIA system.
Therefore, the Tiger Securities investment research team has analyzed Nvidia’s first quarter results from a more micro perspective.
First of all, the business that currently accounts for the largest share of Nvidia’s revenue is the gaming sector, mainly GeForce series GPUs. The application scenarios are mainly game consoles and PCs, and users are mostly heavy gamers.This part of the business earned $ 1.339 billion in revenue in the first quarter, a year-on-year increase of 27%, and accounted for 43.5% of total revenue.
Although this business was disturbed by COVID-19, the supply chain was disrupted, and Nvidia’s business in China was adversely affected, but by virtue of home office work, the demand for games was boosted, and this part of the business still recorded considerable growth.
Secondly, Nvidia’s second largest business is the data center business, which is expected to become the largest contributor to the performance in the next quarter and is also the market’s most optimistic highlight.This part of the business is mainly Tesla / DXG series GPUs, the main users are Internet companies and scientific researchers, and the application scenarios are mainly artificial intelligence.
In the first quarter, the data center business revenue was 1.141 billion US dollars, a year-on-year increase of 80%. This has not yet consolidated Mellanox’s performance. It is expected that the data center business revenue in the second quarter will surpass the game business and become the largest and the most NVIDIA revenue.Business segment with growth prospects.
At the GTC Technology Conference on May 14 this year, Nvidia founder and CEO Huang Renxun released a new data center GPU, NVIDIA A100, which was previously known as Ampere on the Internet.The new GPU contains 54 billion transistors, has 20 times more powerful AI computing power, and is marketed as a “nuclear bomb” -level strategic new product!
In the financial report, Lao Huang made no secret of his inner excitement and happily announced: “Our data center business has set a historical record and is the first $ 1 billion quarter. Nvidia is in the most powerful cloud computing and AI of the era.Good location. ”
Finally, Nvidia also has professional visualization, automotive and foundry, and IP services.Among them, the professional visualization is mainly Quadro series GPU, which is mainly used in the fields of design, movie special effects production and so on.Revenue in a single season is about 300 million US dollars, growth and the attractiveness of the future space.
The automotive business is mainly intelligent driving chips, and it is inseparable from both driverless and connected vehicles. Its market size According to the previous description of Nvidia management, the potential market size in this field can reach about 30 billion US dollars in 2025.
It seems very tempting, but currently the driverless business is still on the eve of the outbreak. The technical strength does not have the possibility of popularization and application. Nvidia ’s layout is more for the next decade. The current quarterly revenue is aroundAbout 150 million US dollars, relative to the volume of 3 billion quarterly revenue, is too mini.
Moreover, due to the impact of the epidemic and the decline in car sales revenue, NVIDIA expects that in the second quarter, the car business revenue will decline by 40% month-on-month.
Another relatively mini is OEM and IP, mainly OEM and IP licensing, revenue volume is similar to the automotive business, growth is general, the market is generally not concerned.
Highlights in the second quarter
The strong first quarterly report has been accrued in the stock price performance before the announcement. Looking forward to the second quarter earnings, Nvidia’s reference is:
Revenue of 3.65 billion US dollars, up and down by 2%, an increase of about 41.5% year-on-year, Mellanox revenue will be consolidated from the second quarter, is expected to contribute about 10% of revenue;
In terms of gross profit margin, it is expected to be 58.6% under GAAP, a slight decline. The main reason is that the acquisition of Mellanox increased the corresponding costs, which is a one-time event.
From the perspective of gross profit margin, Nvidia reported a gross profit margin of 65.1% in the first quarter, leading AMD by a large margin and higher than Intel ’s 60.6%, which is at a historically high level in recent years.
With the data center business becoming the largest revenue source and high-margin Mellanox consolidated, it is expected that Nvidia’s gross profit margin will rise to a higher level.
to sum up:
In the first quarter of the epidemic, Nvidia delivered a beautiful answer, but because of the strong market expectations, the soaring stock price may make the market look at this financial report.
Compared with the crying cry of other industries, Nvidia has a unique scenery here.
Not only did the revenue continue to achieve great results, and the dividend was also unambiguous. In the first quarter, it paid a dividend of $ 98 million. Although the market is uncertain, Nvidia still intends to resume the repurchase. According to the previous authorization, Nvidia in 2022Before December, it can still repurchase 7.24 billion US dollars of stock.
With the proliferation of liquidity in the US stock market and the scarcity of risk aversion targets, coupled with Nvidia’s far-reaching technical strength, Nvidia is expected to still set a new record.
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