Nvidia Continues to Dominate - [Visualized]

Good Morning,

Welcome to another edition of ChartWiz, where we visualize financial data in bite-sized portions. In today's edition, we're going to dive deep into NVDA's performance and how it stacks up against the broader semiconductor industry.

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INDUSTRY ANALYSIS

Let’s dive into the latest quarterly performance of top semiconductor companies. NVIDIA (NVDA) leads the pack with a staggering $26.04 billion, significantly outpacing its peers. Intel (INTC) follows with $12.72 billion, maintaining its stronghold in the market. Broadcom (AVGO) and Qualcomm (QCOM) also show robust revenues at $11.96 billion and $9.39 billion, respectively. This data underscores the critical role these companies play in the tech ecosystem, driving innovation and growth in various sectors.

Company Facts:

• NVIDIA (NVDA):

  • Leader in GPU technology.

  • Major player in AI and gaming markets.

  • Recently expanded into data center and autonomous vehicle sectors.

• Intel (INTC):

  • Pioneer in microprocessor manufacturing.

  • Strong presence in PC and data center markets.

  • Investing heavily in next-generation chip technology.

• Broadcom (AVGO):

  • Known for semiconductor solutions in wired infrastructure, wireless communications, and industrial markets.

  • Strong portfolio of patents in connectivity and broadband.

• Qualcomm (QCOM):

  • Leading provider of mobile and wireless technology.

  • Innovator in 5G technology.

  • Significant presence in smartphone chipsets.

• Applied Materials (AMAT):

  • Supplies equipment, services, and software for the manufacture of semiconductor chips.

  • Key player in the semiconductor production chain.

• Micron Technology (MU):

  • Specializes in memory and storage solutions.

  • Major supplier of DRAM and NAND flash memory.

• Advanced Micro Devices (AMD):

  • Competitor to Intel in the CPU market.

  • Known for high-performance computing and graphics solutions.

• Microchip Technology (MCHP):

  • Provides microcontroller and analog semiconductors.

  • Focuses on embedded control applications.

• ARM Holdings (ARM):

  • Architect of the ARM processors used in most mobile devices.

  • Influential in the development of low-power, high-efficiency processors.

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NVDA - REVENUE COMPARISONS

Let’s highlight NVIDIA's phenomenal growth in data-center revenue compared to its total revenue over time. NVIDIA's data-center revenue has skyrocketed from $83 million to an impressive $22.6 billion, representing a staggering 27,100% increase. In contrast, the company's total revenue has also seen substantial growth from $1.1 billion to $26 billion, a 2,300% increase. This comparison underscores how pivotal the data-center segment has become for NVIDIA, far outpacing the growth rate of its overall business and showcasing its dominance in this sector.

Now comparing NVIDIA's total revenue growth to that of Intel (INTC) and AMD (AMD). NVIDIA's total revenue surged from $3.2 billion to $26 billion, marking a 712.1% increase. Meanwhile, Intel experienced a decline from $16.1 billion to $12.7 billion, a decrease of 20.8%, reflecting challenges in maintaining its market position. AMD, however, has also seen significant growth, with its total revenue rising from $1.6 billion to $5.5 billion, a 232.3% increase. NVIDIA's explosive revenue growth starkly contrasts with Intel's decline and underscores its aggressive expansion and market capture.

Focusing on NVIDIA's data-center revenue growth in comparison to Intel's and AMD's total revenues. NVIDIA's data-center revenue grew from $701 million to $22.6 billion, an astounding 3,100% increase. During the same period, Intel's total revenue fell by 20.8%, from $16.1 billion to $12.7 billion, while AMD's total revenue rose by 232.3%, from $1.6 billion to $5.5 billion. This highlights NVIDIA's dominant position in the data-center market, demonstrating its ability to significantly outgrow its competitors and establish itself as a leader in this critical technology sector.

NVDA - HOW THEY MAKE MONEY (with amazing margins)

NVIDIA's revenue breakdown highlights not only the company's robust financial performance but also the lucrative potential for investors. With a total quarterly revenue of $25.96 billion, the data-center segment is the star performer, contributing an impressive 87% ($22.6 billion) of the total. Gaming and PC account for 10% ($2.6 billion), while professional visualization and automotive & robotics contribute 1.6% ($427 million) and 1.3% ($329 million), respectively. The cost of revenue is a modest $5.64 billion, or 22% of the total revenue, leading to a substantial gross profit of $20.41 billion, equating to 78% of revenue. Operating expenses are efficiently managed at $3.5 billion (13% of revenue) and other expenses at $2.03 billion (7.8% of revenue), culminating in an operating income of $16.91 billion and an impressive net income of $14.88 billion, or 57% of the total revenue.

What makes NVIDIA particularly appealing to investors is its ability to maintain such high margins, especially in the data-center segment, which is not only the largest revenue contributor but also a rapidly growing market. This segment's explosive growth and profitability underline NVIDIA's strategic focus and successful execution in cutting-edge technologies like AI, cloud computing, and big data analytics. These impressive margins signal a resilient business model and a promising future, making NVIDIA a delicious investment opportunity for those looking to capitalize on the tech industry's most dynamic and profitable areas.

HISTORICAL RETURN

How $10,000 Invested in Nvidia (NVDA), AMD, and Intel (INTC) Would Have Returned Over The Last 2 Years

The historical return chart vividly illustrates the impressive performance of NVIDIA (NVDA) compared to its top competitors, AMD and Intel, over the past two years. A $10,000 investment in NVIDIA would have grown to an astonishing $58,715, representing a phenomenal 487.15% increase. This exceptional growth underscores NVIDIA's dominance and successful expansion in the semiconductor industry.

In contrast, the same $10,000 investment in AMD would have appreciated to $16,385, translating to a respectable 63.85% gain. While not as explosive as NVIDIA, AMD's performance still highlights its solid presence and growth potential in the market.

Meanwhile, Intel's performance over the same period tells a different story. A $10,000 investment in Intel would have depreciated to $6,945, reflecting a -30.55% loss. This decline emphasizes the challenges Intel has faced in maintaining its market position amid fierce competition and rapid technological advancements.

Overall, these figures showcase NVIDIA's exceptional growth trajectory, making it a standout investment in the semiconductor sector, while AMD also presents a viable growth opportunity. In contrast, Intel's decline highlights the importance of strategic adaptability in this dynamic industry.

WORD FROM WIZ

That’s all we have for you in today’s edition of ChartWiz. If you found this valuable, please consider forwarding it to a friend.

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Have a fantastic week!

-Wiz

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