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00:00 On May 25, NVIDIA gained over 24% in a single day, temporarily raising its market capitalization above $1 trillion.
00:11 The surge was triggered by an announcement related to its artificial intelligence products.
00:16 This isn't the first time the group has taken advantage of major technological revolutions.
00:20 In fact, it's its trademark.
00:22 It began with video games in the late 1990s, NVIDIA's Riva, and then GeForce 256 processors took the industry by storm.
00:31 The group was then chosen by Microsoft to develop graphics cards for the Xbox console, then by Sony in 2004 to equip the PlayStation 3.
00:40 In the 2000s, several innovations underpinned the group's growth, notably the Suda language, a revolutionary computing architecture.
00:48 Like all tech companies, NVIDIA's share price was on an upward trend.
00:53 In 2008, NVIDIA launched the Tegra range, used primarily by the automotive industry for embedded systems, and then adopted in 2017 by Nintendo for the Switch.
01:03 The financial crisis and problems with faulty processors curbed share price growth.
01:08 The stock remained flat for a while, with the release of a few products useful for virtual reality, video editing, or even mobile devices.
01:16 In 2016, cryptocurrency miners found NVIDIA's products particularly effective for mining, and rated all the cards on the market.
01:24 The group took advantage of this trend until the cards ran out in 2019.
01:29 That same year, NVIDIA capitalized on the deep learning trend, and then on data centers.
01:34 It acquired Mellanox Technologies, taking advantage of its expertise in data processing, to position itself at the heart of the cloud trend.
01:42 2020. COVID.
01:45 The good news is that everyone is staying at home and ordering consoles and computers en masse, which is good for business.
01:52 The bad news is that this situation exacerbates the shortage of cards.
01:56 In 2021, NVIDIA broke into the metaverse before its competitors with Omniverse, a shared platform that enables engineers to collaborate remotely and run real-time simulations on the metaverse.
02:08 This year, as you know, the group has joined the artificial intelligence megatrend with a series of dedicated products.
02:14 GPUs, cloud services, gaming applications, and more.
02:19 What does this mean in terms of results?
02:21 When you look at sales since 2014, the crypto effect is clearly visible.
02:26 Then we have the Omniverse and AI combo effect over the last two years.
02:30 If we zoom in on the sales segments, we also see the major trends that benefited the group.
02:35 Gaming in blue, data centers in gray, as well as microprocessors, chips for the automotive industry, and computer graphics products.
02:43 Operating income and net profit follow similar paths, with an explosion in 2022 and a decline in 2023, which can be explained, among other things, by higher R&D spending.
02:54 Why is NVIDIA always ahead of the competition?
02:58 The group was founded in 1993 by Jens Sundhoy, current CEO, Chris Malachowski, and Curtis Preem, three engineers with a flair for the early days, to develop a graphics processor dedicated to computer graphics, separate from the CPU.
03:13 The group went on to develop expertise in high-performance computing, and each of its innovations has fueled the next.
03:20 The latest chips developed by the group have a remarkable density—H100 contains 80 billion transistors—and are therefore capable of processing vast quantities of data, much more than other chips.
03:33 Another of the group's strengths is its long-standing partnership with Taiwanese chip giant TSMC, currently the only company to master the finest etching.
03:42 Why did NVIDIA's share price soar at the end of May? Because its AI products are ready, unlike those of AMD, for example, and are already generating revenues.
03:52 These announcements surprised analysts, who largely revised their sales and earnings estimates upwards.
03:58 This explains why investors flocked to the stock, which was already highly valued—attracted by the promise of future earnings.
04:05 The other engine of enthusiasm lies in NVIDIA's positioning. In a gold rush, it's the shovel-and-pickaxe salesmen who stand the best chance of getting rich.
04:13 The group's H100 graphics processor—priced at over $40,000 each and designed specifically for generative AI—is already an indispensable tool for gold-diggers.
04:24 And what about the future? NVIDIA has already announced that it is building a massive AI supercomputer, due to be launched this year, which should serve as a model for future large-scale generative AI infrastructure.
04:36 We can't wait to find out more.
04:38 [silence]