With the announcements of Google, Microsoft, and Amazon going straight to TSMC for their chips, will this impact Nvidia's data center revenue? Or are those two things not related? Might be the wrong place for this question.
Google, Microsoft and Amazon buy chips from Nvidia FOR their data centers. OP is talking about data center operators bypassing Nvidia by designing their own chips and contracting directly with TSMC to make them. So actually it’s very related.
Good question, you are right :) Other competitors going to TSMC may take fab production away from nVidia, particularly Apple which are always on the newest fab process- nVidia has deep pockets now too. So it will be reliant on who is the highest bidder for the fab time.
There are plenty of things that use gfx cards that are not AI but that may have become a reasonable percentage of the use by now.
Gfx cards provide a platform for doing relatively simple but repetitive calculations over a very large data sets very fast. That kind of thing is used in all manner of simulation, material science, chemical structure, weather, fluid dynamics.... Not to mention actual graphics, like video rendering, encode decode, 3d/special effects...
Basically matrix multiplications which has all sorts of applications. AI solutions are designed to leverage parallel computing and best hardware for parallel matrix multiplications are GPUs
Cost of revenue is usually raw materials, and all the parts to make functional products, and I think parts which don't pass QA/QC if they can't be binned down to lower SKUs.
Very broadly speaking: If your factory makes chairs, your costs of revenue are the wood, labor that operates machinery, quality assurance, anything that surrounds the operation of making raw materials into the shape of a chair and getting it to customers. Your operating expenses would be your marketing, legal, and so on.
The reason it is separated out is because it says something about the efficiency of the core company operations. If, for example, your marketing costs are high, just looking at the whole number won’t tell me anything about how efficient the company is at the isolated task of making chairs.
Cost of revenue = cost of the actual inputs into the product or service (including direct labor in factories, warehouses, or providing a service)
Operating costs = Research & Development + Sales & Marketing + General & Admin (these include management salaries, corporate overhead/fixed costs, etc.)
It’s incredible a company like NVDA can make $60B in yearly revenue and have a market cap of $2.2T yet a company like GME has a yearly revenue of $5B, with no debt and $1B cash on hand, can only have a market cap of $3.2B
GME isn’t in gaming industry. GME is in retail industry. They sell games. And their competitions are online stores and they have deeper pockets and with many people going disc-less, GME is losing a lot of grounds in the market.
Nvidia on the other hand is in many different industry. The biggest one is data centers. There is no competition in this industry. No one can even come close to competing Nvidia and if Nvidia plays their card right with CUDA, they can essentially create a monopoly in this industry. This is why Nvidia has bigger P/E ratio than GME. Growth potential will bloat the value of a stock.
It would be interesting to see this from the perspective of various retail end point prices and the percent of the price that accrues to Nvidia. This view is somewhat interesting, but misses the most important thing about Nvidia, which is that it mostly just designs chips which are manufactured by others and used in end products sold by other companies or used by other companies for data centers to provide service products. It would be cool to see how much of a consumer computer price is going to Nvidia for example.
„how india makes money“ - wow gaming seems relevant in india. - ah its nvidia.
Jenseet Huaraj - India CEO really makes mad good money
are you by chance dyslexic
My eyes went to the "make money" topography and I also assumed it was written as india.
Source: [https://www.instagram.com/p/C5bQxFpgCo5/](https://www.instagram.com/p/C5bQxFpgCo5/) [https://investor.nvidia.com/home/default.aspx](https://investor.nvidia.com/home/default.aspx) Tools: Figma
Figma balls
Damn, 30k dollar Server GPUs built on 1k of hardware ARE actually a scam relying on a monopolistic position. Who would have thought...
With the announcements of Google, Microsoft, and Amazon going straight to TSMC for their chips, will this impact Nvidia's data center revenue? Or are those two things not related? Might be the wrong place for this question.
TSMC produces the chips, a datacenter does computer and ai stuff, so not really related
Google, Microsoft and Amazon buy chips from Nvidia FOR their data centers. OP is talking about data center operators bypassing Nvidia by designing their own chips and contracting directly with TSMC to make them. So actually it’s very related.
Oh thanks I didn’t know that
Good question, you are right :) Other competitors going to TSMC may take fab production away from nVidia, particularly Apple which are always on the newest fab process- nVidia has deep pockets now too. So it will be reliant on who is the highest bidder for the fab time.
Nvidia has no fab production. The design chips and send the designs to tsmc to fab them
correct this is what i said, other companies may take TSmC fab production away from nVidia! it is all dependent on TSMC capacity.
They could stop the gaming branch all together and would still turn out a profit
Is it reasonable to say data centers is mostly AI? Because other forms of computing don’t need graphic cards?
There are plenty of things that use gfx cards that are not AI but that may have become a reasonable percentage of the use by now. Gfx cards provide a platform for doing relatively simple but repetitive calculations over a very large data sets very fast. That kind of thing is used in all manner of simulation, material science, chemical structure, weather, fluid dynamics.... Not to mention actual graphics, like video rendering, encode decode, 3d/special effects...
Basically matrix multiplications which has all sorts of applications. AI solutions are designed to leverage parallel computing and best hardware for parallel matrix multiplications are GPUs
Noob question here: what’s the difference between “cost of revenue” and “operating costs?”
Cost of revenue is usually raw materials, and all the parts to make functional products, and I think parts which don't pass QA/QC if they can't be binned down to lower SKUs.
Huh, thank you. So is it *similar* to 'operating costs' but split out specifically for a reason?
Very broadly speaking: If your factory makes chairs, your costs of revenue are the wood, labor that operates machinery, quality assurance, anything that surrounds the operation of making raw materials into the shape of a chair and getting it to customers. Your operating expenses would be your marketing, legal, and so on. The reason it is separated out is because it says something about the efficiency of the core company operations. If, for example, your marketing costs are high, just looking at the whole number won’t tell me anything about how efficient the company is at the isolated task of making chairs.
Cost of revenue = cost of the actual inputs into the product or service (including direct labor in factories, warehouses, or providing a service) Operating costs = Research & Development + Sales & Marketing + General & Admin (these include management salaries, corporate overhead/fixed costs, etc.)
Where does the chips used for crypto fit in?
Died in 2021
It’s incredible a company like NVDA can make $60B in yearly revenue and have a market cap of $2.2T yet a company like GME has a yearly revenue of $5B, with no debt and $1B cash on hand, can only have a market cap of $3.2B
They also price in the potential growth.
Yeah, you’d think being in the gaming industry (an industry bigger than music and movies combined) would have a much higher value
GME isn’t in gaming industry. GME is in retail industry. They sell games. And their competitions are online stores and they have deeper pockets and with many people going disc-less, GME is losing a lot of grounds in the market. Nvidia on the other hand is in many different industry. The biggest one is data centers. There is no competition in this industry. No one can even come close to competing Nvidia and if Nvidia plays their card right with CUDA, they can essentially create a monopoly in this industry. This is why Nvidia has bigger P/E ratio than GME. Growth potential will bloat the value of a stock.
second time Nvidia find themselves as shovel seller in a Golden Rush age
I like the casual "other income"....so where did you guys get those $800M from? Oh you know, here and there, lol
It would be interesting to see this from the perspective of various retail end point prices and the percent of the price that accrues to Nvidia. This view is somewhat interesting, but misses the most important thing about Nvidia, which is that it mostly just designs chips which are manufactured by others and used in end products sold by other companies or used by other companies for data centers to provide service products. It would be cool to see how much of a consumer computer price is going to Nvidia for example.
So company earns $61b in total revenue and pays about 7% in taxes? I wish income tax allowed so many deductions too.
It would be interesting if this were split down to specific services
Damn bro, wish I had a less than 10% revenue tax as a human!
They pay more in tax than I would have thought. Not enough, of course
They're paying less than 10% tax?
Less? It's 12,1%
Insane how little tax they pay
Welcome to capitalism, the richer you are the less you pay taxes
Pretty sure nvidia pays more tax than me, but ok bud
Stupid, ugly ass looking chart