I know TSLA is not exactly the type of stock folks here will flock to, but perhaps NVDA could be.
Nvidia was selected for the neural-net compute power behind Tesla’s level 5 capable self-driving car. Nvidia has been highlighted in other posts so I won’t elaborate on that here, but I think they may meet the criteria desired here on the boards.
For those who missed the Tesla announcement last night a microsite describing the new capability can be found here:
I really like Nvidia and just doubled up a few days ago. But I also like Tesla and have recently re-initiated a position. I think there is a lot of future potential from following services and offerings that perhaps gets overlooked. My take: Elon Musk is developing an ecosystem and a platform for his “hardware” devices. If you read through the microsite linked above make sure you scroll down all the way to the bottom and take a look at the following:
Please note that Self-Driving functionality is dependent upon extensive software validation and regulatory approval, which may vary widely by jurisdiction. It is not possible to know exactly when each element of the functionality described above will be available, as this is highly dependent on local regulatory approval. Please note also that using a self-driving Tesla for car sharing and ride hailing for friends and family is fine, but doing so for revenue purposes will only be permissible on the Tesla Network, details of which will be released next year.
Tesla is a story stock that has already disrupted the industry. I would not discount their ability for further disruption. The future may prove me wrong, but as of right now I am long the story and long the stock.
“Tesla is a story stock that has already disrupted the industry. I would not discount their ability for further disruption. The future may prove me wrong, but as of right now I am long the story and long the stock.”
This certainly sounds good for NVDA though cars are a small part of business for now.
I increased my NVDA position on the news. But it is still a smallish position. A big question is whether the “graphics” experience of the company does translate to the real world 3D experience of driving. If it is true, everybody else will be playing catch up.
Like TSLA I am willing to wait 5 or more years for a payoff. And like TSLA think there is a fair chance of lower buying points between now and then.
Tesla is more than a story stock because they are making actual products. Consumer Report just gave the S a “100” for driving experience. That real car is the real story.
I don’t follow NVDA or TSLA as closely as some of the other companies I analyze here. That said, NVDA and TSLA are both holdings of mine, so I do pay some attention. My NVDA holding (one of my largest) is about five times the size of my TSLA holding, and I’ve held it about four times as long.
Maybe you realize this already, because you put “graphics” in quotes. In case you don’t, though, I’ll offer this bit of information. I think that the same features that make NVDA chips so good for graphics also lend themselves very well to powering artificial intelligence (AI) applications. While NVDA chips may have other uses in the Infotainment console, I think AI is the real reason NVDA is being talked about so much these days.
If you use any kind of backward-looking metric to value NVDA, it seems grossly overvalued right now. But I think that may be an apples-to-oranges comparison. As NVDA’s role in AI increases, and as AI’s role in the world increases, comparisons against a company whose target market was mostly video game enthusiasts become increasingly irrelevant.
I’m happy with my large NVDA holding, and I’m not keen on trimming it. I’m likewise happy with my much, much smaller TSLA holding.
Yes NVDA is too expensive. Which is why I don’t own much of it.
I gather that nvidia chips were already in the dash and infotainment system, what is new is that now they are in autopilot.
This is a huge opportunity for nvidia if indeed their design and experience is especially suitable for autonomous driving AI and machine learning. I have heard this is the case but lack the expertise in that field to confirm it myself. No reason they can’t keep designing and selling graphic cards for computers too, thus furnishing cash flow for car related products.
Tesla still has all the data gathered when they used mobileye. Hopefully they can find a way to use it with nvidia products. Because thanks to their constant internet connection they have more real time driving data than everybody else put together.
I gather that nvidia chips were already in the dash and infotainment system…
To be clear, outside of Tesla and Audi, I don’t know of any other OEM shipping cars with NVidia chips inside. Yeah, Volvo’s doing a pilot of 100 cars, Mercedes is exploring, and Honda is promising - but, none of these are anywhere near the volumes that GM/Chrysler/Ford have with Freescale (NXP), TI, etc. inside.
NVidia gets the press, but like Qualcomm, as a company they’re not yet setup to support Automotive Tier1 and OEM development. Granted, it’s a great story, but there’s not much there there yet.
(I own both TSLA and NVDA, and have for years, btw.)
I am a big fan of NVDA and its multiple futures, in addition to being an excellent platform for AI in cars, it fast, cheap and low power Tegra chip is also being used to run datacenter computers. We all know it as a video graphics supplier to PC, which may have seen their glory days, but video games are still hot, so it has a number of ways to expand. A lot of game boxes are still sold. Will VR applications demand the processing of NVDA chips?
This is a nice link for financial, charts and a big list of news articles that is easy to look through. I am getting prett sick of Yahoo Finance - all ads now. http://www.finviz.com/quote.ashx?t=nvda&ty=c&ta=1&am…
IBD growth rankings:
Checklist…Rating
Composite Rating 99 Pass
EPS Rating …93 Pass
RS Rating …98 Pass
Group RS Rating A+ Pass
SMR Rating …A Pass
Acc/Dis Rating B Pass
and number 1 in its group.
Chart Chat
In the week ended Feb. 13, 2015, the video graphics processor expert broke out, clearing a 21.35 buy point in a nine-week flat base. The action over the next six weeks was excellent, yet Nvidia didn’t rally 20%. In late March, the stock fell hard and began a new base over the next six months. Result? Base on base.
Nvidia broke out again in late September, and this time it climbed sharply. The stock rallied 43% from a 23.70 buy point in just two months — enough to warrant a new base, which Nvidia formed from December 2015 to March 2016. That ushered a breakout from a second-stage base at 33.16 and another strong run. Nvidia is now marginally past the 63.60 buy point from a stage-three flat base.
I’ve missed the climb of NVDA. Up 350% in a year . It has got me wondering how many times I’ve passed on too high of PE which follows with spectacular price appreciation. The high PE kicks it out of this board’s screening, with AMZN being an indication that Saul recognizes that high PE isnt always more risk. I just can’t buy something that has such a recent gigantic climb, and may have to miss this one. Kudos to all who caught the climb though.
I guess that’s why we look at PEG and not just PE. I honestly didn’t see the potential in Nividia a year ago - I thought Qualcomm had them beat. Let’s see how they re-invent themselves in VR, AR and automotives.
I think it has a bit more to climb, due to the Nintendo Switch (WiiU successor due out in Spring) containing NVIDIA tech, along with the Tesla announcement at about the same time.
Factor into that the push into deep learning and recent wins in the cloud space, and you can see they are currently executing on multiple fronts (legacy PC gaming, new Nintendo Console, automotive/autonomous driving market, AI/deep-learning.
Their VR/AR play is less-defined right now, as they are not the tech for Playstation’s VR, but if you think about Oculus being embedded throughout Facebook, there could be huge cloud VR growth and NVIDIA may have an angle there. Examples could be Realtors Facebook pages showing VR tours of houses/properties, fashion companies allowing “Virtual dressing rooms” for people to see what clothing purchases/sizes may look like, virtual vacations/excusions such as VR rendering of a drone flying through Grand Canyon. Endless possibilities, and I think this is part of what FB was thinking with Oculus…how they would integrate it into the largest social network on the planet. If/when we ever see FB/Oculus take off in this manner, it would be important to note what tech powers the VR, whether it is NVIDIA or a homegrown solution, etc…
I think $80 for NVIDIA may be the high for next 6-9 months due to all the recent growth, and then as earnings continue to show gains in Automotive, AI, and hopefully VR, they could grow rapidly again from there.
