To The Moon

Since the fourth quarter of 2022, AI has been blowing the trumpet of a new technological revolution. the emergence of ChatGPT has caused people to exclaim the dawn of a new era. $NVIDIA Corp(NVDA)$ 

In such a revolution of computing power, ChatGPT itself is a product as well as a productivity tool. It is like a machine tool for producing tools, capable of producing more advanced and faster products in a constant stream.

And in the process of all this, as a strategic level infrastructure, is the arithmetic power, that is, the technological battle of chips.

In precision computing, TSMC and Samsung such as the world's most advanced foundry and ASL, Nikon, Canon and other lithography has become a strategic level. And in floating-point computing, Nvidia is the undoubted king of infrastructure in the war of arithmetic power.

Whether in the blockchain's arithmetic power struggle or big model training, Nvidia is a deserved shovel seller, and the company's product H100 has even been banned from exporting to China as an important product.

So, in fact, until NVIDIA's regular reports are released, the company's performance won't be too bad, no matter what kind of performance the company has had, as long as it's not too ugly.

But even in this case, the earnings report released by Nvidia after the market hours on May 24, U.S. Eastern time, still gave the market a great shock.

This announcement shows that Nvidia achieved revenue of $7.19 billion in the first quarter of fiscal 2023, higher than analysts' expectations of $6.52 billion; second quarter revenue is expected to fluctuate 2% above and below $11 billion, well above analysts' expectations of $7.18 billion.

The company reported adjusted earnings per share of $1.09 for the first quarter, compared with analyst estimates of $0.92; gaming revenue for the first quarter was $2.24 billion, compared with analyst estimates of $1.98 billion; and data center revenue for the first quarter was $4.28 billion, compared with analyst estimates of $3.91 billion. Gross profit margin for the quarter was 66.8 percent, compared to analysts' expectations of 66.6 percent.

Such a report, although a significant year-on-year decline, but has greatly exceeded market expectations.

The company's share price rose by more than 30% after the bell, and on May 25, local time, the company opened with a consistent gain of about 25%. The performance was exceptionally bright.

The company says there will be a dramatic shift in the trillion-dollar market for data centers from general-purpose use to AI use in the coming period, and that enterprises are racing to apply generative AI to all products, services and business processes.

In fact, it's already happening, with Microsoft, Google, Amazon and even Oracle already in the mix. And domestic companies such as Tencent, Ali, Baidu, Racer, and Jitterbug have all begun to kill this battlefield.

NVIDIA's H100, Grace CPU, Grace Hopper, NvLink, Quantum 400 Infiniband, BlueField 3 DPU are in production and the company will significantly increase supply to meet demand. And it is expected that the capacity supply will continue to increase in the second half of the year compared to the first half.

Previously, because NVIDIA's graphics cards heat up abnormally, they were laughingly called "nukes" by gamers, and NVIDIA's president Jen-Hsun Huang was called a "weapons expert".

But when the AI era came, Jen-Hsun Huang and his Nvidia, turned into an "arsenal" that we can buy, comparable to Lockheed Martin, Hyundai and other such excellent companies.

NVIDIA is the biggest beneficiary of this AI wave, the subject.

Although there is no role in Hong Kong stocks and A shares that can be compared with Nvidia, but can be related to Nvidia's Industrial Fulian shares have doubled, CPO concept of Cambridge Technology, China Inter Xu Chuang shares have more than quadrupled.

And the domestic big model concept of 360 and Baidu Group can also benefit, all related companies, in this wave, share a piece of the pie.

There is no doubt that Nvidia is the biggest beneficiary.

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