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NVIDIA Reports Q4 and 2018 Financial Results - Down 45%

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Keep in mind, that they get it all at gross price, level of optimization of operating expenses in this kind of companies is astonishing, it's always all together - poor or mediocre quality components, choice of cheapest supply routes - by sea, by air if it is cheaper than delivery of jam from your grandma, and etc.,etc. - otherwise you would never get all this tech - rtx2080ti, iPhone, your brand new TV or car or fridge - at anything close to "affordable", at all.
 
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As long as the stock marked does not ruin the tech for us, i can live with it.

A coworker thinks Elon Musk did it on purpose.

Robcostyle said:
Keep in mind, that they get it all at gross price, level of optimization of operating expenses in this kind of companies is astonishing, it's always all together - poor or mediocre quality components, choice of cheapest supply routes - by sea, by air if it is cheaper than delivery of jam from your grandma, and etc.,etc. - otherwise you would never get all this tech - rtx2080ti, iPhone, your brand new TV or car or fridge - at anything close to "affordable", at all.

Sadly have to agree to that. I had GPU fans which broke. It was almost impossible to replacements from them. I even lost 2 GPUs from the official RMA route and only got a coupon. And it wasn't high enough to get an equally powerful GPU. Just because of broken fans.
After some digging it turned out that the reseller has special contracts with the manufacturer.
 
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Yes, roughly 100$ per tu102 chip. It is MASS PRODUCT, people! Margin they have from every single card is enormous! From 200-300% in worst case, probably up to 1000%! I don’t understand why you people keep sympathizing ngreedia and their chip “complexity “

This is a bit too much. According to Anandtech and Gamer Nexus Nvidia is targeting 50-60 % profit margin for their retail GPU gaming products. That hasn't changed when going from Maxwell/Pascal to Turing. The problem NVidia has with Turing is large die and rather expensive GDDR6 ram. So Nvidia had to choose between lower sales or lower profit margins. As their large shareholders expressed unwillingness to go with lower profit margins route, the only path left for them was to rise the prices and suffer lower sales. That being said, they're still way better positioned than AMD is right now. Radeon 7 costs $450-550 to make alone (excluding almost non existent marketing costs for this particular release). Selling it for $700 gives them half the Nvidia's profit margins at best but probably much less. That's why AMD's not in a hurry to sell R7 in large quantities. Similar story is with Vega 56/64.
 

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Keep in mind, that they get it all at gross price, level of optimization of operating expenses in this kind of companies is astonishing, it's always all together - poor or mediocre quality components, choice of cheapest supply routes - by sea, by air if it is cheaper than delivery of jam from your grandma, and etc.,etc. - otherwise you would never get all this tech - rtx2080ti, iPhone, your brand new TV or car or fridge - at anything close to "affordable", at all.

You clearly have no idea what you're talking about.
RTX Cards are overpriced sure but 2080Ti has the most efficient and powerful VRM on the market. More efficient than that of a Radeon VII (according to buildzoid) and any other reference designs out there. It's probably the best VRM on a reference card ever (I'm not sure though).
Even the vaper chamber that nvidia is using on their FE cards is fairly expensive.
 
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According to Anandtech and Gamer Nexus Nvidia is targeting 50-60 % profit margin for their retail GPU gaming products.
The story here says Nvidia's gross margin this quarter was 54.7%. This includes everything they do and consumer graphics cards are more than likely with the lowest margin in their product portfolio.
 
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I think we all can agree on, that it is good, when a company earns money. So they are here in the future. And as long as AMD is even trying to be some kind of competition it is good too.

When you look at the overall Nvidia stock market prices, they still do very well. These 45% down is just something to catch us, even call it clickbait. And actually where did they go 45% down. And an what timespan. The article does not even say. (i just searched for 45, and the only match was in the headline^^)
 

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Whereas I think you've came here just to troll...

Saying that nvidia's profit margin on each card is up to 1000% sounds more like a troll, doesn't it?
 
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I think youre not getting the full picture of the market... you see, these “losses” untied huangs hands for further price rise. Revenue loss == higher prices.
And there is 2 awfull things that will make him to do so 100%: its shareholders and his own greed.
And then when you think Intel & possibly AMD - if they ever release anything remotely competitive on 7nm - where does JHH run then with these ridiculous prices? If Nvidia aren't careful history will bite them hard like it has done to corporations much bigger than Nvidia in the past, lots of them are pounding the indomitable Sands of time.
 
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should have given us a ~800 USD gpu to replace the GTX 1080Ti
and ~700 USD gpu to replace the gtx 1080
instead of the two overpriced rtx cards
pretty sure they would have sold whole a lot more gpus to gamers
 
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Nvidia full-year sales outlook tops analyst views; shares rise

They're really taking NVIDIA's word for it? I see nothing in this report that warrants NVIDIA shares going up 8% as it did. Me thinks NVIDIA could get in trouble for being too optimistic.

To nvidia's credit their stock doing a bit better than I'd anticipated. Shares going up on a bounce is normal as low buy orders get filled. Now to see if these gains are sustained, or if nvidia is being "over optimistic" again... if they lie in anticipation of catching up by spending more money sooner or later that catches up with these companies.
 
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Thing is, AMD can still fight the 2060 with their ancient Vega die without any problem.

I have been holding on to a aging GTX 970 and I just finally got tired of waiting for the prices to come down on the new Nvidia cards and picked up a nice Vega 56 (hopefully with Samsung memory) for dirt cheap to tide me over until Navi releases and hopefully competitive prices return. I do love this 970, I have never held on to a graphics card for so long, but I could never validate upgrading with all the price gouging we had been seeing.
 
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Saying that nvidia's profit margin on each card is up to 1000% sounds more like a troll, doesn't it?
Just an assumption - but I'm 100% sure they're not selling it with "only" 10% margin.
for example - iphone x had 300% margin, there was alot discussion on that matter - and iphone is a ready-to-go device, with screen, electronics, battery, packaging, etc.
Here we have only chip itself, vram and electric circuit parts. Chips can't be that much more expensive than those iphone has - despite being much more powerfull. That is unit failure percentage, engineering makes a major part of chip's cost, not the complexity at fabrication - and apple also has all those, however much less complicated.
Vram - yeah, that depends on even more greedy samsung and micron.
Circuit parts - beleive me, the ones they use in FE - it's far away from top notch - it is just good, and does the job well, but it doesn't mean vrm is "golden".

All that said, iphone x and 2080 ti have the same price on the market. And everyone says apple got nuts these days - so what about ngreedia?
 

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Combination of the mining craze mostly died out and a lot of used cards hit the market and the ridiculously high prices set by Nvidia.
We used to get high end cards for $500 to $700 now the 2080 Ti is $1,000 or $1,200 on the Nvidia Store if you can find one.
The RTX Titan has gone up to $2500. That is more than double the price of the Titan XP.

I'm hoping Intel brings a strong GPU lineup next year.
 
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Ya, not surprising at all. Good to see consumers aren't biting on the RTX bs. No doubt it'll be good stuff one day, but the pricing NVidia wants for these things is out of this world ridiculous. I wouldn't buy a 2080 Ti for more than $750. And that's only if it was brand new. I was looking to buy (2) of them until the product launched and I saw how disappointing the performance gains were versus the asking price.
 
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Just an assumption - but I'm 100% sure they're not selling it with "only" 10% margin.
for example - iphone x had 300% margin, there was alot discussion on that matter - and iphone is a ready-to-go device, with screen, electronics, battery, packaging, etc.
Here we have only chip itself, vram and electric circuit parts. Chips can't be that much more expensive than those iphone has - despite being much more powerfull. That is unit failure percentage, engineering makes a major part of chip's cost, not the complexity at fabrication - and apple also has all those, however much less complicated.
Vram - yeah, that depends on even more greedy samsung and micron.
Circuit parts - beleive me, the ones they use in FE - it's far away from top notch - it is just good, and does the job well, but it doesn't mean vrm is "golden".

All that said, iphone x and 2080 ti have the same price on the market. And everyone says apple got nuts these days - so what about ngreedia?

So next time you have baseless assumptions, find something to support your idea instead of a hunch. Your point will land a lot better. It also helps not to overexaggerate. So, sorry if I won't 'believe you' about part quality. You don't know jack all.
 
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Nvidia full-year sales outlook tops analyst views; shares rise

They're really taking NVIDIA's word for it? I see nothing in this report that warrants NVIDIA shares going up 8% as it did. Me thinks NVIDIA could get in trouble for being too optimistic.
Nvidia forecasts better results than what analysts expected. Shares went up. That's how stocks work.

Time after time I see you really confused in stock market discussion. Are you sure you know how this thing works?
There's no shame here. For example I don't know how kidneys work (beside what I was told at school). One can't know everything.

A lot of people believe that share price works like a "mood barometer". Nvidia is OK (good results, good products) => price goes up. Nvidia is not OK (bad results, old / slow products) => price goes down.
 
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Turing has feature parity with Vega plus some additional things here and there. If you look at game benchmarks where Vega used to get a lead over Pascal, it never really gets that over Turing.
Actually they don't, not that it would be really relevant but NVIDIA still doesn't support stencil value from ps (and their per-resource and per-process virtual address space is 4bits smaller (40 vs 44bit))

--
What I'm more curious about is the possibility of nvidia downplaying cryptomarkets in their official reports, since every other number except NVIDIAs matches the analysts calculations
 
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Yup, doesn't make any sense. Musk's twitter comment about buying the company out got him in hot water, as it rightfully should.
The sense here is that Tesla wants to be a major car maker when electric vehicles take over our roads. And, surely, they have the know-how and the patents to support this claim.
The manufacturing technology they have today is already good enough to make them profitable. The issue is volume (scale). They aren't selling enough cars to cover huge investments.
If EV sales were few times larger, they would already make huge profits and have a stable business.

The price of a stock is an estimate of what happens in the future. It's an average of returns in many possible outcomes (like in a Monte Carlo simulation).
Some paths lead to a future where we have many EVs. Some paths don't. In some paths Tesla becomes successful. In some they default because of cashflow problems. In some paths EVs are expensive and sporty (like current Tesla models), in other they are slower and more practical (like a Nissan Leaf).
For each of these paths you can estimate Tesla's value. The average of all these outcomes leads to the share price you see.
But the discussion about the precise share value is really complicated. Let's forget about it for a moment.

So now back to your issue: why is Tesla price going up all the time? The answer is in the previous paragraph - have you noticed? :)
At some moment in the future (let's call it T) EVs will become so popular that Tesla's situation will be considered safe. They'll sell a lot of cars and make a lot of money.
With each passing day we're getting closer to that moment.
This means that probability of "Tesla defaults before T" decreases and probability of "Tesla survives to T and may become successful" increases.
So just because of the passing time the share price goes up. It's just pure math. We don't have to know anything about cars to understand this.
 
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So next time you have baseless assumptions, find something to support your idea instead of a hunch. Your point will land a lot better. It also helps not to overexaggerate. So, sorry if I won't 'believe you' about part quality. You don't know jack all.

Baseless?
I still wonder what makes you people protect turing...Or what, you've bought one, so now "changing" sides?
 
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Yeah this is a clear proof that they lied in previous results. if i dont remember wrong once theyve reported 100 millions of mining and 1 billion onf gaming!

I guess they are making up for it now.

Nvidia said:
Gaming = Down 46%
Professional Visualization = Down 4%
Datacenter = Down 14%
Automotive = Down 5%
OEM and IP = Down 22%

Their outlook is FLAT to Down slightly

Their inventory is getting harder to sell as well up from 102 last Q (which was shy of double their normal) to 143 days. Last quarter Huang said inventory would clear out in 1 quarter and now its becoming increasingly difficult.
 
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