100 million in mining need can be overestimated NVIDIAs cash flow report is better than expected however the stock price plummets by 5
"For reasons uknown, if Tesla fails to develop the desired chip, NVIDIA is usually happy to offer support." Tesla CEO Elon Musk said at the wages conference earlier this month. Synthetic intelligence (AI) computing chips are increasingly being developed, and they're expected to come out in 2019 as soon as possible. http://daf.csulb.edu/cgi-bin/rd.pl?u=https://burnouthints.webs.com/apps/blog/ indicated his kindness in this quarter's earnings meeting and told Tesla through hot words that even if one day they split up, they still Could be good friends.
However, due to the decrease in the requirement for cryptocurrency mining, although NVIDIA's financial report for the second one fourth of fiscal year 2019, the various indexes appearance good, however the third quarter economic report forecast isn't because good as analysts expected, causing the stock price to drop sharply after the market. A lot more than 5%, NVIDIA certainly overestimated the actual demand for mining.
In short, Huang Renxun exposed filled with kindness, as though telling Musk that even though 1 day we really broke up, we can still be good friends. flickr via Heisenberg Press is still a pal of the separation. Huang Renxun portrayed a friendly mindset towards Tesla. "We've been doing it secretly for 2 2 to 3 three years." Currently Read More uses NVIDIA GPU (images processor). Previously this month When releasing the financial review, Musk informed everyone that AI potato chips are being developed silently, claiming to have better overall performance than NVIDIA. It is important is that the chips can fully meet Tesla's needs and decrease reliance on third-party manufacturers.
Faced with the threat of Tesla's entry into the chip marketplace, some analysts curiously requested Huang Renxun in the financial report conference whether this might impact on NVIDIA's long term. Huang Renxun talked about the Pascal images processor produced by NVIDIA for Tesla. It's been launched for 3 years. In order to ensure the improvement of computing power, the Xavier chip produced by Tesla recently has been put into production.
For reasons uknown, if Tesla fails to develop the desired chip, NVIDIA is usually happy to assist. NVIDIA CEO Huang Renxun exposed a word of goodwill, as if informing Musk that even if one day we really break up, we can still be good close friends. Musk then published on Twitter: "NVIDIA makes great hardware products. I regard NVIDIA and Jensen (Huang Renxun) quite definitely. Our hardware specifications are very unique and need to be closely integrated with our software." This article also uncovered that Tesla won't quit its intend to develop its own chips.
Nvidia makes great hardware. High respect for Jensen & corporation. Our hardware requirements were just special & matched firmly to our software program.
- Elon Musk (@elonmusk) August 16, 2018. Lately, technology giants possess begun to realize the importance of independent research and growth of chips. Apple company, Alphabet, and Facebook have their own plans for research and advancement of potato chips. Although NVIDIA's strength and experience in chip development will definitely become better than Tesla, many brand names hope to integrate their own software and hardware. In the future, the chip market will definitely only become more and more competitive. What NVIDIA should certainly think about is steps to make it sustainable. Keeping the advantage and releasing a friendly attitude may be a good start.
The indexes are great, and the stock price fallen by 5%? After NVIDIA introduced its financial record, its stock cost dropped sharply by a lot more than 5%. At first glance, you might think that the economic report performed badly, but in fact, revenue and internet profit exceeded marketplace expectations.
In terms of figures, revenue this quarter had been All of us$3.123 billion, a rise of 40% over the same period last year; operating profit arrived at US$1.157 billion, an increase of 68% on the same period last year; the amount of net profit achieved US$1.101 billion, an increase of 89% on the same period last year. %; Game company revenue has been US$1.8 billion, an increase of 52% over the same period this past year; data center revenue was All of us$760 million, a rise of 83% over the same period last year, setting a record high; expert visualization business revenue was All of us$281 million, great Analysts expected 255.4 million U.S. dollars; automotive business income has been 161 million U.S. dollars, better than analysts' goals of 147.9 million U.S. dollars.
Mining demand provides dropped a lot, so NVIDIA's income forecast for the next quarter will undoubtedly be lower than Wall Street expectations, addressing up the good impact of this quarter's good overall performance. Shutterstock "growth" and "much better than expected" are the common features of a series of figures within the financial report. How come the stock price fall by 5%? The primary reason is that NVIDIA expects third-quarter revenue to be US$3.25 billion, plus or minus two portion points, that is lower than the analysts' calculate of All of us$3.34 billion. All of this is related to the weakening of cryptocurrency mining requirement.
Overestimating the requirement for mining, Huang Renxun: Efforts will no longer make a difference in the second half of the year. There were frequent negative news about cryptocurrency recently. Many currency issuers speculate on costs and attract a lot of investors to get into the market. The price of Bitcoin is weakened, and the purchase price is usually $6,474.20 prior to the deadline. The issue of mining is definitely increasing, which reduces the requirement for mining. Therefore, the income forecast for the next quarter will be lower than Walls Street expectations, addressing in the good performance of this quarter. positive impact.
Before yr, Huang Renxun had been very optimistic concerning the demand for chips delivered by mining. He believed that there is still a lot of room for development in this market. However, it is clear that the actual requirement for mining continues to be overestimated. Huang Renxun said at the monetary report conference: In this particular quarter, we did get a great deal of advantages from the cryptocurrency market. At the start of the entire year, I originally believed that the cryptocurrency marketplace would contribute a lot more to our company, but now, we believe that the contribution in the next half of the year will not be that important any more. "
In the past season, Huang Renxun is very optimistic concerning the demand for potato chips delivered by mining, and thinks that there is still a lot of room for growth in the forex market, but it will be clear that the actual demand for mining has been overestimated. According to James Huang's digital observation, the revenue linked to cryptocurrency and mining devices arrived at 289 million U.S. dollars last quarter, data processing for nearly 75% of the business's revenue. Nevertheless, this quarter's revenue was just 18 million U.S. bucks, significantly less than 100 million U.S. dollars. It is expected that the outcomes of the previous quarter will be far different. NVIDIA Chief Financial Official Colette Kress mentioned: "The revenue outlook 90 days ago, we approximated that the sales of cryptocurrency-related companies will fall to about 100 million US bucks, but in fact only US$18 million, that is much not the same as the previous season.??