NVIDIA 3Q FY 2022 CC Notes:
Colette Kress, CFO, went over material in CFO comments I posted earlier.
Some highlights:
- Professional Visualization up 144%YOY due to Omniverse;
- Data Center up 55% YOY. Hyperscale doubled. NVIDIA dominating Supeercomputer Top 500 accelerators.
- Reviewed GTC announcements.
Q&A:
Q: Opportunity in subscriptions?
Jensen:
- Generating real revenues. Digital Twins has real-life applications. Already being used, e.g., BMW.
- Physical, e.g., self-driving cars.
- Digital: e.g., Omniverse Avatars. there are 25 million retail stores, restaurants, etc. Likely largest application. Subscriptions will be $1,000 pr user. Self-driing autos, retail stores, restaurants, etc. Millions and millions of dollars at $1,000 each.
Q: There are new demands for accelerated computing every year:
- How close is Avatar to mass usage?
- Will there be a new killer app every year?
Jensen:
Chips are enablers. Software creates new markets. Need full stacks. We are democratizing AI. Omniverse took a half a decade. Avatar uses computer vision AI, speech recognition AI, eye tracking AI. Avatar will be in retail stores, restaurants, etc. within five years.
- Accelerated computing needs software stacks.
- Chips don't create new markets, software does.
- Omniverse Avatar is a short-term opportunity.
Q: Two questions:
- Cloud computing?
- Foundry availability?
Jensen:
- We've secured Taiwan Semi supply.
- Data Center: Half is cloud, half is Enterprise, 1% is supercomputer.
Trident: The most popular inference systems use trees. Back to Avatars: can use for drive-throughs, check-outs, etc.
Q: Two questions:
- Colette: Data Center and Gaming were the main driers of growth. Data Center: Hyperscale and Enterprise grew 50% last year. Will they grow 50% again next year?
- Jensen: Where are we in growth of AI?
Colette:
We provide guidance one quarter out. We provide discussion of future drivers. We've secured supply for next year assuming growth. Will wait till next year for guidance.
Jensen: Less than 10% accelerated now. Growth areas are Omniverse, self-driving cars, protein modelling, etc.
Q: Colette: Gross Margin headwinds?
Colette:
Gross margins are stable. Software will be driver for margin increases.
Jensen: Closing Remarks
- 25K companies are using NVIDIA AI.
- Gaming and servers are surging.
- Working hard to increase supply for Holidays.
- Looking at million times speedups in accelerated computing.
- GTC highlighted full stacks.
- Software creates new growth markets, chips are enablers.
- Omniverse, Digital Twins, Avatars: just the tip of the iceberg for what's to come.
Cheers,
Frank |
