Even though many of us might not know at the drop of the hat what its latest invention is, NVIDIA is as significant and productive as other titans (such as Apple, Microsoft and Google) that have had an enormous impact in the multinational technology industry. Its value has particularly increased with the artificial intelligence boom.
What is NVIDIA?
NVIDIA has made computer chips running graphics-heavy video games since its inception in 1993. But recently, artificial intelligence researchers have begun using the very same chips to run new algorithms that are taking the field by storm. NVIDIA immediately started attracting the attention of investors and the public. It started to deliver outstanding results quarter after quarter, inspiring investors to expect uninterrupted growth, especially in the video gaming and data center markets. And NVIDIA has lived up to investors’ high expectations.
On the 18th of July 2023, its stock soared to an all-time high closing price of $474.94. As of August 05, 2023, NVDA is trading at $446.80, while its average stock price for the last fifty-two weeks amounted to $239.62. Considering that only in 2020, NVIDIA’s average stock price hovered around $96.64 and was as low as $5.7530 in 2015, the company’s recent advancement is impressive indeed.
To help you understand whether the company presents valuable investment opportunities, below we present NVIDIA’s crucial historical and statistical data.
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NVIDIA’s Annual Revenue from 2009 to 2023
A company’s revenue is defined as the amount of money it earns from its customers in exchange for the sales of goods or services. Revenue is the top item on an income statement from which all costs and expenses are subtracted to get to net income.
NVIDIA’s revenue for the quarter ending April 30, 2023, was $7.192 billion, which constitutes a 13.22% drop year-over-year. Its revenue for the twelve months ending April 30, 2023, was $25.878 billion, a 12.4% retreat year-over-year. NVIDIA’s revenue for 2023 was $26.974 billion, a 0.22% advance from 2022.
Its annual revenue for 2022 was $26.914 billion, which is a whopping 61.4% increase from 2021. NVIDIA’s annual revenue for 2021 was $16.675 billion, showing a 52.73% growth from the first year of the pandemic. Check out the table below to see the trajectory of NVIDIA’s annual revenue since 2009.
NVIDIA’s Annual Revenue in $US Billion
(in $US Billion)
|% Difference to Prev. Year|
Nvidia Q3 2023 Earnings
Nvidia reported its 2023 third-quarter earnings on Tuesday, November 21, with EPS of $4.02, $0.66 better than the analyst estimate of $3.36. Revenue for the quarter came in at $18.12B versus the consensus estimate of $16.18B.
“Despite yet another beat-and-raise quarter, investors were left wanting more from Nvidia, which is held to a higher standard than almost every other tech company, given its remarkable year-to-date performance. While its blowout Q3 results and strong guidance underscore its dominant position in harnessing the AI momentum, investors are getting harder to impress given the stock’s 240% run this year. Investors appear to be concerned over the negative impact of widening U.S. curbs on sales of its high-end chips to China.”
Jesse Cohen, Senior Analyst at Investing.com
Nvidia Q2 2023 Earnings
Nvidia reported its 2023 second-quarter earnings on Wednesday, August 23, with EPS of $2.70, $0.63 better than the analyst estimate of $2.07. Revenue for the quarter came in at $13.51B versus the consensus estimate of $11.13B.
NVIDIA’s Revenue Worldwide (by Segment)
In fiscal 2023, NVIDIA’s revenue from its Graphics business segment reached $11.9 billion, while revenue from its Compute&Networking segment amounted to nearly $15.1 billion.
NVIDIA’s Graphics division is geared toward specialized markets, which include the GeForce series for gamers and software products designed for cloud-based visual and virtual computing.
The Compute&Networking segment includes data center platforms and systems for AI and high-performance computing (HPC). This segment also includes products used in autonomous vehicles, robotics, and mobile devices. How NVIDIA’s revenue is divided between different segments from 2017 is reflected in the table below:
NVIDIA’s Revenue by Segment, in $US Billion
|Year||GPU||Tegra Processor||All Others||Graphics||Compute & Networking|
|2023||( – )||( – )||( – )||$11.906||$15.068|
|2022||( – )||( – )||( – )||$15.686||$11.046|
|2021||( – )||( – )||( – )||$9.834||$6.841|
|2020||( – )||( – )||( – )||$7.639||$3.279|
|2019||$10.175||$1.541||( – )||( – )||( – )|
|2018||$8.137||$1.534||$0.43||( – )||( – )|
|2017||$5.822||$0.824||$0.264||( – )||( – )|
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NVIDIA’s Revenue by Region, in $US Billion
Competing with Intel Corp and Advanced Micro Devices, Nvidia serves five major geographical regions: China, Europe, Asia Pacific, Taiwan, and the United States.
In the table below, the row reflecting the annual revenue earned in China’s mainland also includes the revenue made in Hong Kong:
NVIDIA’s Revenue by Specialized Markets, in $US Billion
The company still sells GPUs for the PC and workstation markets. However, the growing application of these chips in new segments such as data centers, automotive, cryptocurrency mining, and digital twins has opened a large profitable market for NVIDIA. In fiscal 2023, $9.067 billion of NVIDIA’s total annual revenue of $26.974 came from gaming.
The table below shows how the company’s annual revenue is divided between markets since 2015:
|Year||Gaming||Professional Visualization||Data Center||Automotive||OEM & Other|
NVIDIA’s Revenue Compared to AMD and Intel
Although NVIDIA overtakes Intel and AMD in terms of the GPU market share, it lags behind the former when it comes to its revenues. Intel’s annual revenue is larger than those of NVIDIA and AMD combined. However, NVIDIA has often displayed a higher percentage of revenue growth over recent years.
Thus, in 2019, Nvidia’s revenue grew at an average annual rate of 33%, while AMD grew only at the rate of 18% and Intel at only 9%. Between 2017 and 2018, the growth in NVIDIA’s revenue was fueled by its entry into the data center business and the launch of Pascal architecture GPUs. To see how NVIDIA’s revenue compares to the earnings of AMD and Intel since 2015, consult the table below.
Annual Revenues of NVIDIA, AMD, and Intel, in $US Billion
NVIDIA’s GPU Market Share
In 2023, NVIDIA owns 82% of the GPU market share but it is slowly starting to lose share to Intel and AMD. Its other competitors include Cisco, Qualcomm, Broadcom, Hewlett Packard Enterprise, and Renesas Electronics. The major competition in the GPU market is offered by the two GPU heavyweights, AMD and Intel. As NVIDIA and AMD make GPUs powering the most effective graphics cards, competition between them has been simmering since the 1990s.
In 2023, the competition became truly fierce. AMD revealed a challenge to NVIDIA’s data center GPU with its Instinct MI300 accelerator series. The chips include the MI300X, which, according to AMD, provides better efficiency and cost savings for running large language models than NVIDIA’s flagship H100 data center GPU. Meanwhile, despite AMD’s new invention, NVIDIA is still overtaking its rival, with its graphic cards accounting for the majority of GPUs on the Steam Hardware Survey.
Indeed, more than 90% of neural network training runs on NVIDIA GPUs today. But analysts predict that the disposition of power in the GPU market might begin to change.
NVIDIA’s Market Share from Q4 2021
NVIDIA’s Annual Net Income
A company’s net income is defined as its net profit or loss after all revenues, income items, and expenses have been taken into account.
NVIDIA’s net income for the quarter ending April 30, 2023, was $2.043 billion, up 26.27% year-over-year. Its net income for the twelve months ending April 30, 2023, amounted to $4.793 billion, constituting a 49.32% drop year-over-year. Its annual net income for 2023 was $4.368 billion, which was a 55.21% decline from 2022. NVIDIA’s annual net earnings for 2022 were $9.752 billion, which was a staggering 125.12% increase from 2021. The company’s annual net income grew by 54.94% to $4.332 billion in 2021. How large NVIDIA’s net income was in other years is presented in the following table.
NVIDIA’s Net Income from 2009, in $US Billion
|Year||Net Income (in $US Billion)|
NVIDIA’s Annual Earnings Per Share (EPS)
A company’s earnings per share are defined as a company’s net earnings or losses attributable to common shareholders per diluted share base, which includes all convertible securities and debt, options, and warrants.
NVIDIA’s diluted EPS for the quarter ending April 30, 2023, was $0.82, which constituted a 28.13% growth year-over-year. Its EPS for the twelve months ending April 30, 2023, was $1.92, a significant 48.53% dive year-over-year. NVIDIA’s 2023 annual EPS was $1.74, a whopping 54.81% decline from 2022, while its 2022 annual EPS amounted to $3.85, demonstrating a spectacular 122.54% jump from 2021. NVIDIA’s 2021 annual EPS was $1.73, a 53.1% advance from 2020. For the company’s earnings per share in other years, consult the following table.
NVIDIA’s EPS from 2009
Number of NVIDIA’s Employees from 2005
NVIDIA had 26,196 employees at the end of January 2023, which is a bigger staff than in 2022, when the company provided work to 22,473 people. Nearly 40% of the people the company hired in 2022 came from employee referrals. Over 75% or 19,532 of Nvidia’s 26,196 employees at the end of January 2023 worked in the R&D department.
NVIDIA’s Employee Count
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Short History of NVIDIA
2023 – NVIDIA became the first chipmaker to ever reach a market capitalization of $1 trillion. Mostly, these gains have accumulated during the last decade, when the company’s stock has surged by roughly 10,870%. Yet in fiscal 2023, NVIDIA’s revenue stayed flat, and its adjusted EPS dropped 25%.
2022 – The parent company of Arm Holding, SoftBank, and NVIDIA said that they would not move forward with the transaction due to regulatory challenges. In 2022, as it did in 2021, NVIDIA experienced a major growth jump as the pandemic forced more consumers to buy new PCs for online classes, remote work, and high-end video games. More data center operators also had to upgrade their services with NVIDIA’s GPUs.
2021 – The intended takeover of the British company Arm Holdings was suspended because the UK’s Competition and Markets Authority had spoken about competition concerns. Later the same year, a competition investigation into the takeover was opened.
2020 – NVIDIA’s scientists developed an open-source ventilator to compensate for the shortage caused by the pandemic. Later in the year, the company announced its Ampere GPU microarchitecture and the Nvidia A 100 GPU accelerator.
2019 – NVIDIA announced new RTX Studio laptops, which promised to be seven times faster than a top-end MacBook Pro with a Core i9 and AMD’s Radeon Pro Vega 20 graphics in apps like Maya and RedCine-X Pro. In August, the company announced Minecraft RTX, with an added real-time DXR raytracing tailored to the Windows 10 version of the game.
2018 – The company released the Nvidia Quadro GV100 on March 27 and the RTX 2080 GPUs on September 27. The same year, Google announced that Nvidia’s Tesla P4 graphic cards would be integrated into Google Cloud service’s artificial intelligence.
2017 – NVIDIA released the Titan V on December 7.
2016 – NVIDIA presented the first GPUs of the GeForce 10 series, the GTX 1080 and 1070, based on the company’s new Pascal microarchitecture.
2013 – The Tegra 4 and the Nvidia Shield, an Android-based handheld game console, were unveiled to the public. The company announced that it bought PGI from STMicroelectronics.
2011 – NVIDIA released its Tegra 3 ARM system-on-a-chip for mobile devices. It featured the world’s first world quad-core mobile CPU. The same year, the company announced that it would acquire Icera, a baseband chip-making company in the United Kingdom, for $367 million.
2008 – The company acquired Ageia, developer of the PhysX physics engine and physics processing unit.
2007 – NVIDIA was named the Company of the Year by Forbes magazine for its rapid growth and success.
2004 – NVIDIA announced that it would assist Sony with the design of the graphics processor (RSX) in the PlayStation 3 game console.
2002-2003 – These were years of successful acquisitions. In July 2002, NVIDIA acquired Exluna which made software-rendering tools. In August 2003, NVIDIA bought iReady, a provider of high-performance TCP/IP and iSCSI offload solutions.
2001 – This was the year of noticeably growing revenue for the company. NVIDIA earned $1.37 billion and thus nearly doubled the revenue of the previous year. Its net income jumped to $176.9 million, while its stock price climbed to $66.90 at the end of the year from $16.50 at its beginning. In December, NVIDIA replaced Enron Corporation on the S&P 500.
2000 – NVIDIA split its stock for the first time. Since 2020, NVIDIA’s stock split history has continued, as it split its stock also in 2001, 2006, 2007, and 2021. An investor who bought 100 shares of NVDA stock in the 1999 IPO would now own 4,800 shares of NVIDIA thanks to all the share splits along the way.
1999 – The company released the GeForce 256 (NV10), thus introducing onboard transformation and lightning to consumer-level 3D hardware. The GeForce 256 implemented video acceleration, motion compensation, and hardware sub-picture alpha blending and left all existing products spectacularly behind. Among other products created the same year was Aladdin TNT2 for PCs, which cost less than $1,000. In 1999, NVIDIA went public.
1998 – NVIDIA released the RIVA TNT, which boosted its reputation for developing effective graphic adapters.
1997 – This proved to be a memorable year for NVIDIA. After launching the RIVA series of graphic processors, it became a force to be reckoned with in the industry. The company’s popularity continued to be on the rise when it presented its GeForce 256 GPU to the world, thereby offering excellent 3D graphic quality. In so doing, NVIDIA outclassed Voodoo Graphics, subsequently purchasing the assets of its producer – 3dfx Interactive – in 2000. In 1997, Microsoft chose NVIDIA to develop graphic cards for its Xbox video game console.
1995 – NVIDIA released its first chip, having invested $10 million in its development, the money it raised from Sutter Hill Ventures and Sequoia Capital.
1994 – A year later, the company signed an agreement with SGS-Thomson Microelectronics, a European wafer fabricator. This partnership enabled NVIDIA to create its single-chip GUI accelerator or sound/graphic board. NVIDIA also arranged for Diamond Multimedia Systems to install these chips in multimedia accelerator boards.
1993 – The company, which now produces graphics processors, mobile technologies, and desktop computers, was founded by three computer scientists, Jen-Hsun Huang, Curtis Priem, and Chris Malachowsky, in Santa Clara, California. The founders envisaged their logo as an “all-seeing eye.” They changed the colors of their logo, removing the black color from it over the years and finally settling on green and white, but the main concept has stayed unaltered. What is also peculiar about the company is the pronunciation of its name. In the word “NVIDIA,” the first letter “N” is pronounced separately from the rest of the sounds, as the letter “N” of the English alphabet is pronounced: /en/ -vidia. In Latin, “invidia” means “envy.”
When they started their company, the founders saw that video games were computationally challenging but could potentially sell well. They also understood that video games would help them reach large markets. With this in mind, Jen-Hsun Huang, Curtis Priem, and Chris Malachowsky decided to establish a large R&D department to solve difficult computational problems involved in video gaming, initially investing $40,000 in the R&D team, all that they had in the bank then. With time, NVIDIA succeeded in winning $20 million of venture capital funding from Sequoia Capital and other sources.
Over the years, NVIDIA has formed significant partnerships with other tech and media giants, counting overall almost 250 partners. Among these partnerships are deals with Microsoft, Hewlett Packard Enterprise, Amazon Web Services, Google, VMWare, IBM, SAS, and Lenovo.
NVIDIA’s Major Acquisitions
- On April 27, 2020, NVIDIA acquired Israeli chip design company Mellanox Technologies for $7 billion.
- On June 13, 2011, NVIDIA bought baseband and RF technology company Icera for $367 million.
- On November 7, 2006, the company acquired audio technology company PortalPlayer for $357 million.
- On August 4, 2003, NVIDIA acquired chipmaker MediaQ for $70 million.
- On April 11, 2002, the company bought 3dfx Interactive’s graphics assets for $70 million in cash and 1 million shares.
For its innovative developments and remarkable work ethic, NVIDIA has received several notable awards over the years.
- Glassdoor chose NVIDIA as the best workplace of 2023, basing its accolade on NVIDIA’s employees’ reviews of the company.
- NVIDIA was listed third on Fast Company’s list of the most innovative companies of 2021.
- MIT Sloan and Glassdoor hailed NVIDIA as a Culture Champion in 2020.
- NVIDIA was called by Dow Jones the Best Green Company.
- NVIDIA appeared on Forbes’s Just 100 list of 2021, finishing second as the Best Corporate Citizen, outclassed only by Microsoft.
- Harvard Business Review praised Jen-Hsun Huang as the best CEO in its 2019 CEO ranking.
NVIDIA Leadership and Key Executives
The main credit for NVIDIA’s success goes to Jen-Hsun (Jensen) Huang, who co-founded NVIDIA in 1993 and has served since its inception as president, chief executive officer, and a member of the board of directors. As of July 2023, Huang has an estimated net worth of about $6 billion. He has been named the world’s best CEO by Harvard Business Review and Brand Finance, as well as Fortune’s Businessperson of the Year and one of TIME magazine’s 100 most influential people.
Another significant person in NVIDIA is Chris Malachowsky who, together with Huang and Curtis Priem, founded NVIDIA in 1993 and has more than 40 years of industry experience. He serves as a member of the executive staff and a senior technology executive for the company. Malachowsky doesn’t only have technical achievements to his credit. He has also received an Emmy for a film he helped produce, Inheritance, which won Best Documentary in 2009. Malachowsky was also inducted into the Florida Inventors Hall of Fame in 2019.
The major NVIDIA officers are Colette Kress, EVP and Chief Financial Officer, Jay Puri, EVP, Worldwide Field Operations, Debora Shoquist, EVP, Operations, and Tim Teter, EVP, General Counsel, and Secretary.
NVIDIA’s Achievements in 2023
NVIDIA’s latest achievements are enabled by the company’s long-term investments in the artificial intelligence field. As many entrepreneurs are now considering custom models like ChatGPT for their use, the company’s technology becomes highly sought after, allowing NVIDIA to reap substantial rewards in 2023. Some of these rewards include an upward movement in NVIDIA’s stock price, a growing demand for the company’s data center GPUs, and the formation of new meaningful partnerships with other tech titans helping NVIDIA to demonstrate its full-stack computing abilities.
In the first half of 2023, NVIDIA expanded the RTX 40 series GPUs it unveiled in 2022 with models for gaming and workstation laptops. The new laptop GPUs include some high-end and mid-range options for gaming: the GeForce RTX 4090, RTX 4080, RTX 4070, RTX 4060, and RTX 4070. NVIDIA also presented customers with several models for mobile workstations: the RTX 5000, RTX 4000, RTX 3500, RTX 3000, and RTX 2000 GPU. These GPUs come with hardware-based AV1 encoding.
In March 2023, NVIDIA presented the world with Omniverse Cloud, a platform-as-a-service for creating and running 3-D internet applications. The new Omniverse Cloud is offered specifically for the automotive industry as it allows engineering, manufacturing, design, and marketing teams to digitize their workflows. NVIDIA’s invention enables the following applications: connecting 3-D design tools to speed up vehicle development, creating digital twins of factories to stimulate changes in a manufacturing line, and performing closed-loop simulations of vehicles in action.
In Spring 2023, NVIDIA revealed cuLitho, a new software library that would use its GPUs to speed up the performance of computational lithography, an essential aspect of manufacturing next-generation chips involving creating patterns on a silicon wafer. cuLitho is integrated into processes and systems by TSMC, the largest chip manufacturer, Synopsys, an electronic design automation vendor, and ASML, a chip-making equipment vendor. Working in tandem with NVIDIA’s GPUs, cuLitho can boost computational lithography performance by up to 40 times. NVIDIA says that this translates into 500 NVIDIA DGX H100 systems with the ability to achieve the same amount of work as 40,000 CPU-only systems.
NVIDIA also announced in 2023 that it had begun the full production of its most ambitious chip project, the Grace Hopper Superchip for complex high-performance computing and AI workloads. Grace Hopper combines a Hopper H100 GPU with a 72-core Grace CPU based on Arm’s Neoverse V2 architecture on an integrated module. The CPU is attached to up to 480GB of LPDDR5x memory while the GPU is connected to a maximum of 96GB of HBM3 high-bandwidth memory. The CPU and GPU communicate via a high-bandwidth NVLink chip-to-chip interconnect that runs at 900GB/s. Nvidia claims that Grace Hopper can run 2.5 times to 3.9 times faster on certain HPC workloads than an x86 CPU paired with the company’s discrete A100 GPU from the previous generation. It provides smaller improvements over an x86 CPU combined with Nvidia’s latest flagship GPU, the H100.
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