Nvidia financial results for Q3/2012

[boxleitnerb]

Gross margin up 1%, now at 53%
Revenue up 15.3% Q/Q and 12.9% Y/Y (both GAAP and non-GAAP)
Net income Y/Y up 17.3% (GAAP) or 13.1% (non-GAAP) respectively
Revenue from consumer products (Tegra, Icera) increased by 35%

Outlook for Q4 is stable with a small drop in revenue. What I find interesting and alarming at the same time is that Nvidia is poised to overtake AMD in revenue in the near future if this development persists. For Q3 Nvidia was at $1.20 bn, AMD at $1.27 bn.

http://nvidianews.nvidia.com/Release...-2013-8b3.aspx

[sontin]

And nVidia announced that they are giving a dividend of 7,5 cents per share and quarter...

So, let us remember:
nVidia is doomed because they have no x86 license. So, yup.

[SirPauly]

What a nice quarter -- nice jump across the division board with the consumer space rebounded and up 35 percent. GPU revenue -- 739.6 m up almost 11 percent.

[cplusplus]

Originally Posted by sontin

So, let us remember:
nVidia is doomed because they have no x86 license. So, yup.

Of all the bad decisions AMD made, selling what became Snapdragon was the absolutely worst one. They could have easily been where nVidia is now, and possibly better, if they hadn't done that.

[blastingcap]

I actually don't mind the cash dividend because I'm stuck in an inbetween spot where I don't want to actually sell but I don't want to buy more shares either. I'm concerned that gross margins didn't rise more though, considering how cheaply made the reference GeForces were and the small die GK104 etc. But with the economy the way it is, I guess any positive is a good thing. Maybe margins were dented by the lower-tier SKUs. I need to look to see if Tegra is impacting things too... many pieces to the company.

[Corporate Thug]

back to back excellent quarters.

[sontin]

Originally Posted by blastingcap

I need to look to see if Tegra is impacting things too... many pieces to the company.

Revenue of Tegra is around $210 Millions and nearly as high as the Professional Solutions business.
It's a huge archivement. 2 years ago there was nearly no revenue from.

AMD is talking about ARM 2014 but nVidia will bring until them so many new chips to the ARM market: Wayne is ramping, they will have 28nm discrete radio modems, end of next year there will be Grey in phones.

Looking at the speed of Tegra's revenue increase i think we will see over $300 Millions in one year and so nearly the same number like AMD's graphics business.

[blastingcap]

I was talking about impacting gross margins. Tegra is a lower margin business than, say, Quadro... I was nervous about the Surface launch but so far it's been better than my (low) expectations. If Windows RT takes off, watch out.

[sontin]

Huang said that Margins for Tegra are around 50%. Much higher than the Geforce business.

In Q3 the consumer business increased 35,7% Q/Q and 27,6% Y/Y. Gross margin is up 1,1 point Q/Q and 0,7 point Y/Y.

It's obvious that Tegra is bringing up the gross margin.

[f1sherman]

Nvidia is like a honey badger!

PC market softness, Death of PC, economic crisis, incoming financial cliff.
Nvidia don't care. They just take people's money.


PS
No doubt Tegra is negativly impacting margins

[blastingcap]

Originally Posted by sontin

Huang said that Margins for Tegra are around 50%. Much higher than the Geforce business.

Do you have a cite for that?

[AnandThenMan]

First reply to this thread is already talking about AMD. Some people are completely obsessed, not healthy. Anyway, NVDA shares bumped up mildly, a stock I feel is under valued somewhat. Hoping to see it tick up a good amount.

[Will Robinson]

That's a decent result for NVDA considering their current gaming card range.

Hopefully AMD can extend its performance lead of the graphics card market to its bottom line and get some big profits rolling in.

[SlowSpyder]

Originally Posted by AnandThenMan

First reply to this thread is already talking about AMD. Some people are completely obsessed, not healthy. Anyway, NVDA shares bumped up mildly, a stock I feel is under valued somewhat. Hoping to see it tick up a good amount.

Some posters can't help themselves.


But since AMD has been brought up, and seeing how well Nvidia has done and continues to do, I wonder how things might be different today if the AMD/ATI merger never happened, but instead the AMD/Nvidia merger with JHH at the helm would have occurred. As opposed to the AMD we have today that cannot compete in the CPU arena on the highend and has very little HPC/GPGPU presence, both being areas with much higher margins than AMD is currently used to, we might have a company that truly would have had Intel worried. Who knows if ATI would still be hanging on, maybe Intel would have bought. It'd be a very different tech world, a lean mean executing AMD, and could you imagine Tahiti on Intel's advanced manufacturing process?

[tviceman]

Creating a dividend and buying back their own stock is an attempt to raise the value of their stock. I agree with anandtheman that the stock is undervalued, and the efforts they are putting forth should have a noticeably positive effect.

[badb0y]

Nice.

[Cookie Monster]

Originally Posted by SlowSpyder

Some posters can't help themselves.


But since AMD has been brought up, and seeing how well Nvidia has done and continues to do, I wonder how things might be different today if the AMD/ATI merger never happened, but instead the AMD/Nvidia merger with JHH at the helm would have occurred. As opposed to the AMD we have today that cannot compete in the CPU arena on the highend and has very little HPC/GPGPU presence, both being areas with much higher margins than AMD is currently used to, we might have a company that truly would have had Intel worried. Who knows if ATI would still be hanging on, maybe Intel would have bought. It'd be a very different tech world, a lean mean executing AMD, and could you imagine Tahiti on Intel's advanced manufacturing process?

I actually tend to think that having JHH at the helm of AMD would have resulted in a completely different AMD to what it is now. nVIDIA and its vision/projects would have complemented AMD so much better along with improved marketing of its tech/features/products.

Just on the top of my head:
-nVIDIA's nforce brand for AMD systems having a strong image (much much better than nvidia's intel counterparts) making their "platforms" stand toe to toe with intels atleast on the marketing side of things.
-nVIDIA's ambition into the mobile space would have changed focus for AMD and i.e. not sell off its mobile division to Qualcomm.
-The emergence of HPC market meant that the opterons complement very well with Tesla based products. (AMD sort of does well in server side of things). Not only that but investments into CUDA/OpenCL makes AMD a very strong player here.
-Professional/workstation products e.g. quadros also give AMD a good boost and further builds up its image in the industrial/professional market.
-The CPU/GPU combinations matches well (given all scenarios) giving customers more flexible options in terms of price (bundling).
-Much stronger image/brand recognition!

Some food for thought.. I mean both even share the same colour scheme ala green!

[AnandThenMan]

Suppose JHH had been at the helm of AMD since 2006. What would he have done with x86? Serious question. But the thought of AMD and Nvidia becoming one company is very intriguing.

[Cookie Monster]

Originally Posted by AnandThenMan

Suppose JHH had been at the helm of AMD since 2006. What would he have done with x86? Serious question. But the thought of AMD and Nvidia becoming one company is very intriguing.

I think there were actual talks between the two parties with regards to a merger and wouldn't be surprised to see if nVIDIA was the first party to be considered as they had a really good relationship thanks to the chipset business.

Im not so sure about x86 given how barcelona turned out.. but I bet the merger with nVIDIA would have helped them rebound alot better. The actual products can be a turd, but nVIDIA for one has shown that they are able to turn that turd into $ which we have witnessed for years. If the products turn out better than the competition, they milk even more $$. I do think that because the x86 market is quite stagnant.. they would most definitely ventured onto different markets much more aggressively e.g. HPC/mobile which is where the future seems to lie.

[tviceman]

Conference call transcript here: http://seekingalpha.com/article/9935...all-transcript

Not a whole lot of info regarding any new Kepler releases for next year, but there are some tidbits about Tegra with LTE taping out now, as well as Wayne expecting to be in more phones than Tegra 3 was.

[blastingcap]

Originally Posted by tviceman

Conference call transcript here: http://seekingalpha.com/article/9935...all-transcript

Not a whole lot of info regarding any new Kepler releases for next year, but there are some tidbits about Tegra with LTE taping out now, as well as Wayne expecting to be in more phones than Tegra 3 was.

Well, I got my wish that JHH would quit using "delightful" to describe everything. Instead, now he's using "surely" as his current favorite universal adjective.

[Raghu]

Results

http://phx.corporate-ir.net/External...F8VHlwZT0z&t=1

Excellent quarter. They did guide down for next Q though.

[boxleitnerb]

I have to wonder though...with Tegra growing so fast, the PC market shrinking and HPC going strong - in the not so foreseeable future, will Nvidia abandon graphics altogether? Let's say 5-10 years from now?

[AnandThenMan]

Do you mean desktop graphics? In 10 years, it probably won't matter because almost any GPU will be able to run the average game well enough. Hope I'm wrong, I want to see true cinematic quality games at some point.

[boxleitnerb]

Yes, desktop.
Games will always progress I presume, at least if the developers can find a way to maintain content creation costs somehow. 3840x2160, 3D, particle physics and high polycount surely would require vastly more powerful cards than we have today.