What Happened To Nvidia?

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Nvidia is one of the largest background companies in the world reaching nearly a trillion-dollar valuation at their peak. And given the massive demand for GPUs combined with high-profit margins, it’s not surprising that Nvidia was doing so well financially. However, since November, Nvidia stock has gotten obliterated with the company shedding $480 billion worth of market cap. Of course, the market sell-off plays a significant role in this sell-off, but there are plenty of Nvidia-specific reasons as well. For example, one of the biggest concerns with Nvidia over the past 5 years is their dependency on crypto mining. In fact, the SEC recently fined Nvidia for not disclosing how influential crypto mining is to their business. Aside from a significant dependency, Nvidia was also boasting unsustainable price increases and an unsustainable valuation. In fact, it could be argued that Nvidia was the most richly valued stock on the entire market. This video explains the various shortfalls of Nvidia and what happened to Nvidia.

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Timestamps:
0:00 - The State Of Nvidia
1:10 - Seasonal
3:30 - Permanent Separation
6:10 - Unsustainable Prices
8:18 - Unsustainable Valuation
10:24 - Future Of Nvidia

Thumbnail Credit:
Reuters - Tyrone Siu

Resources:

Disclaimer:
This video is not a solicitation or personal financial advice. All investing involves risk. Please do your own research.

[miyagiryota]

Mining crash happened, thats what happened to nvidia

[Itsallgoodtogo]

Nvidia sold all their GPUs to miners and scalpers... now everyone refuses to buy their products untill they fall to MSRP price..and the crash is glorious.

[arvincabugnason]

Nvidia being the monopoly in Gpu, had let the Gpu market price gone out of control. Instead of being responsible for managing prices, they took advantage of it fully at the expense of regular Gpu users.

[bdhale]

nVidia never had a chip shortage compared to demand for gaming GPUs, they and their partners sold directly to non gamers by the millions of GPUs which limited the supply there was a demand of.

[Tential]

I can save you a lot of time. What happened? Stock went too high, stock went back down to
They still have insane growth ahead of them. 20% annualized growth from here, easy.

[niks]

I've worked in a very big logistics company, which hired consultants to model their operations and optimize for time and fuel costs using AI, let me tell you as a hardware provider their(nvidia's) accelerators are 10x the price of competition and they charge software updates at same price as a new licence for their debug tools, no one in the world likes working with them, but lab-to-market time is fastest with their stack...

[Jabid]

Nvidia is working to pivot away from consumer/gaming market and go for workstations and servers more because that’s where the big money is. They bought Mellanox, tried to buy ARM created the Grace CPU within a short time period. Nvidia open sourced Linux drivers for the same reason: they don’t want to cede any market to AMD or Intel as those companies would be more friendly to Linux with their drivers. Both Aurora and Frontier supercomputers come with Intel and AMD CPU/GPU respectively and getting contracts like that are huge income for any company.

[dodolurker]

I have had Nvidia GPUs in the past, but some of their anti-consumer and anti-competitive practices have kinda rubbed me the wrong way over the years, so I currently have an AMD GPU. I know AMD is also a megacorporation with their own shitty ways and I'm definitely not an AMD fanboy, but as it stands, I prefer to use their products over Nvidia's.

[doctorwilly]

I think more ppl are aware of NVDA than TSMC and ASML

[sommyaruproy]

Disclaimer: - stock prices are not reflective of actual health of company.

[briankleinschmidt]

Not to mention AMD is making competitive GPU's for lower prices. Also, Intel ARC is coming out. It may be a one-off, but if Intel gets into the GPU market, they will get a chunk of it.

[Heartadia]

Nvidia was the primary speculator and catalyst in 2020-present for the incredible increase in GPU prices.

[donnydarko]

Gamers are a very small percentage of nvidia's business. The old quadros and now the a series cards that are used for film and video production make up a larger portion of their business. Machine learning and analytics are huge for them as well.

Besides that they recently announced that they are working on developing their own CPU's. I think they see the advancement of AMD's integrated graphics over the next few years as a threat to their position in the gaming market.

[rethardotv]

ASICs are for Bitcoin and it’s likes, Etherum mining ASICs are in fact graphics cards, this is by design to democratize mining opposed to Bitcoin mining. Same applies to monero, which is only minable by CPU to lock out ASICs and enable everyone to contribute to the network.

[dectoasd]

Really, Nvidia only nerf the desktop GPUs so they can sell pallets of unlocked mining GPU's to miners directly. These mining GPUs are nerfed so they cannot be sold back to gaming customers. Pure market segmentation. Nvidia is now delaying it's 4xxx cards so it can clear inventory of 3xxx

[philipmcdonagh]

Spent an eye watering 3000 Euro on one of their cards back in January. I remember clearly back in the day a top end graphics card would be definitely cheaper than your PC. Ah they were the days.

[BartoszBielecki]

Keep in mind that AMD is starting to step on nVidia's toes this time. Intel is far behind, but having a decent amount of cash backing them up, they are also aiming for the piece of the pie. ARM acquisition failed and nVidia is pushing heavily the development of CPU arch based on ARM/Risc-V but this will take time.

[imados]

I think this was an overvalued market going back to reality (debt bites back the stock market ) but still nividia has a bright future

[OldsNinetyEight]

Nvidia is creating demand destruction for their own products while simultaneously inviting new industrial players to the market.

[Badd.G]

Nvidia will always be big because of their advanced GPU tech and r n d, their stock will still go up once they release their new series, unless there'll be new competition from intel