Last Year Problems

Nvidia shares had fallen significantly since September 2018. In August, Nvidia excluded the video card for mining from the company’s priorities, citing the negative dynamics of the cryptocurrency market and the decline in demand for graphics processors. Another reason of such decline was poor sales of graphics adapters based on the Turing and Volta architecture. They were too expensive for consumers, while game developers were not hurried to reveal the potential of new products.

3DMark Port Royal

Despite the poor sales of new GPUs and video cards for mining, the company continues to release new products and to amaze potential customers with its new capabilities. On February 5, 2019 during 3DMark Port Royal event the benchmark results of RTX 2080Ti powered by DLSS were presented to gamers community. Thanks to DLSS and RTX collaboration the video cards performance boosted by 42%. The performance of RTX 2060, the younger model, was improved by 50%.

Automotive Market Opportunities

The next key factor of growth is arising from automotive market due to expanded AI implementation in autonomous vehicles. The robotics industry is projected to have a market size of $498.6 billion by 2025. Nvidia developed new Jetson AGX Xavier module which is the best computer for autonomous machines. Real-world tests showed that the Xavier has 8x better GoogleNet INT8 performance-per-watt than its predecessor, the Jetson TX2.

Collaboration with Toyota

On March 18, 2019 Nvidia announced collaboration with Toyota based on ongoing relationship to utilize Nvidia DRIVE AGX Xavier AV computer. The goal of this agreement is to train and validate self-driving vehicles, and to develop an architecture that could be scaled across multiple vehicle models and types. It will speed up their development and production times and simulating equivalent billions of miles of driving in complex scenarios.

Collaboration with Amazon

The same day Nvidia announced collaboration with Amazon to utilize Nvidia Jetson. This AI computing platform provides high-performance energy-efficient computing, which could also be used in different areas such as retail, manufacturing, agriculture and more. This technology will let customers implement deep learning between a huge number of connected devices. These devices could use cloud for management and analytics while they will still be acting locally on the data they generate. As a result, customers could work directly with a Jetson-powered device without sending data to the cloud first.

Acquisition of Mellanox

Earlier this month (on March 11^th, 2019) Nvidia announced an agreement to acquire Mellanox for $6.9 Billion. Mellanox Technologies is one of leading manufacturers and suppliers of telecommunications equipment such as switches and network adapters InfiniBand and Ethernet. More than a half of the world’s best supercomputers and a huge number of leading hyperscale datacenters currently use Mellanox products and technologies. This acquisition will bring together two of the world’s high-performance computing leaders. As a result of this asquisition, Nvidia will have every major cloud service provider and computer maker as its customers and will be able to provide them greater utilization and lower operating costs.

I Know First Forecast

On January 9^Th, 2019 I Know First has issued a 3 month increase for Nvidia Corporation with the signal of 4.88 and the predictability of 0.65. In the fourth quarter of last year, the company’s results surpassed analysts’ expectations. In comparison to S&P 500 index company had three times higher returns. It should be noticed that the end of the fourth quarter was in the middle of the forecast lifetime. This growth was in line with our forecast from the point of company’s earnings and its exceeded expectation. Due to the active actions of Nvidia and successful partnerships aimed at using the most profitable opportunities, we expect NVDA shares to continue growing.