Last week Jensen Huang gave a presentation at the Mobile World Congress:
It’s an hour and 20 minutes and during it NVDA launched the EGX edge computing platform. They also announced an interesting partnership with Ericsson. NVDA is getting ready for 5G and intends to deliver a high bandwidth, low latency computing solution for the trillions of devices that will be connected and will need to make decisions quickly and to do so they need to be located on the network’s edge and have their own brain.
I’m no longer invested in NVDA but I enjoyed following their developments.
That is a pretty interesting development. I’ve been tracking too but haven’t had a position in about a year.
I actually just bought some shares two days ago. I think they return to growth this quarter and we will be surprised by their guidance for Q4. Data Center is coming back. After the hyperscale buildout resulted in under utilization of GPUs last year, the AI market continued to expand. It was reported that cloud GPU utilization is exceeding 80%+ again, and theirs probably a Volta replacement coming out in nearer future.
So dipping back in cautiously
I have not discussed Nvidia in the past on this message board because I am not certain that it really meets the criteria. However, now that Nvidia Pandora’s Box has been opened on the topic…I am invested long in Nvidia and began my position in March '18 at $249.41/share as part of a desk top GPU type of gaming and crypto play. I have added throughout the past 18 months and bought on dips; most recently in August '19 and September '19 at $153/share and $176/share respectively.
However, I am no longer investing on the gaming/crypto desktop GPU thesis; but on the rise of AI and the role that Nvidia will play in AI acceleration with data center growth beginning perhaps as soon as late 2020-2021; particularly as it will pertain to GPU Powered Cloud in a rapidly growing and accelerating AI economy. GPU Powered Cloud will be the piece in the cloud stack related to computing power that will help drive future technologies in AI.
As I always state; I am not an expert in this arena, but I tend to read nearly everything I can get my hands on and rely on those people much smarter than I that have written extensively and convincingly on this topic. For instance, various articles written this Spring in connection with Nvidia’s acquisition of Mellanox provided a pretty clear window into Nvidia’s long term strategy.
I am prepared for a bumpy ride. There will be competition, there will be macro economic forces at work to add to volatility, there will be false starts and perhaps even competitive attacks on competency and efficaciousness of Nvidia’s advancements, but in the end (2023-2025) I believe that Nvidia will be a major player in the AI economy which some project will be adding $15 Trillion to the global economy by 2025.