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NVIDIA Can't Stop and Won't Stop 📈

PLUS: Profiteer of (Streaming) Wars 📺

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  • NVIDIA Can't Stop and Won't Stop 📈

  • Profiteer of (Streaming) Wars 📺

  • Asteroids ☄️

  • Trending Tools ⚒️ 

NVIDIA Can't Stop and Won't Stop 📈

Nvidia’s earnings calls are now like The Super Bowl for investors. And honestly, who can blame them?

The bar was set higher than Snoop Dog and Wiz Khalifa at Rolling Loud, but Nvidia showed with an army of Seth Rogens and managed to beat every expectation. 

The results blew away Wall Street to such a degree we thought there would be a gaping hole in Manhattan as a result. 

The Digits

Here’s a quick glance at their numbers:

  1. Revenue: $22.1B [+265% QoQ]

  2. Data Center: $18.4B [+409% QoQ]

A $2T+ company announcing a 265% increase in revenue QoQ is almost unheard of. The result?

(NASDAQ:NVDA) gained a market cap of $277B in a single day of trading - the largest one-day gain in history.

Take a moment to let that sink in.

The Mighty Datacenter

Let’s talk about the star of the show - The Datacenter. It was the MVP that every analyst had their eye on, and boy, it did not disappoint.

Like previous quarters, it was led by the strong demand for the Hopper GPU platforms related to a surge in demand for training and inference of LLMs. 

1/ Cloud platforms provided ~50% of the data center revenue. All the big boys - AWS, Azure and GCP are Nvidia customers.

2/ Consumer internet companies are also quickly ramping up their GPU purchasing. Meta recently announced the company’s massive investment in 350K H100s from Nvidia.

3/ It’s not just companies; entire nations are lining up for GPUs. Local governments want to protect their data and train and transform their own models. 

In short, EVERYONE wants Nvidia GPUs. 

Nvidia has one of the best problems a business can have. So much demand that your biggest worry is keeping pace.

The company is now bigger than Amazon and Google. It’s the 3rd largest company in the US now - just behind Microsoft and Apple. 

Wall Street has officially termed it as “The most important stock on planet Earth”.

Do you think Nvidia can continue the dream bull run? 

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Profiteer of (Streaming) Wars 📺

Do us a favor. Switch on your Smart TV and check the name of the OS. We bet you a Taco Bell chalupa that it’s probably Roku.

Humble Beginnings

Roku started out as an internal project at Netflix and was spun out as its own company in 2008. And almost 16 years later, the company has marked itself as a crucial enabler of the TV streaming revolution.

Roku started its journey selling Roku Boxes, a hardware device that would enable you to access streaming services on your TV. 

The company then started pivoting to selling co-branded and eventually branded Roku TVs as the Smart TV revolution came about. 

However, Roku isn’t in the hardware business. Infact, it loses money on every TV sold. But that’s alright. 

Because for Roku, selling TVs isn’t the end game.

Profiteer of Wars

You’ve heard it before - the clichèd ‘Streaming Wars’. They rage on as much as ever with pretty much every major media company having added their own streaming platform to the mix. 

But while all the big names have a turf war for subscribers and fight to win the biggest share of those streaming hours - Roku isn’t too worried. 

Why? Because they ARE the turf.

They are the gatekeepers for content discovery and consumption where consumers are spending the most time watching it - the TV. 

Roku controls the limited real estate of the homepage across ~30% of American TVs. And that’s where its biggest leverage comes into play.

Roku isn’t in the business of selling TVs - because it’s in the business of selling ads. 

The company’s platform segment - which includes advertising and content distribution has undergone a remarkable revolution. 

In 2017, the revenue split between devices and platform was 1:1. Fast forward to 2023, and the platform biz commands 85% of the total revenue. 

Being the default platform for more than a third of US TVs has placed the company well to serve the plethora of streaming as a distribution medium for these competitors. 

And Roku isn’t just stopping there. They recently launched The Roku Channel to enter into the content business. 

They’ve also started displaying ads on their famous Roku City screensaver.

They’re also announcing a lineup of premium TVs. This is part of their strategy to get its TV and by definition, their platform into as many homes as possible. 

☄️ Asteroids ☄️

Google's AI model Gemini, designed for generating diverse images, hit a snag by hilariously misrepresenting historical figures, sparking debates on diversity and AI ethics. 🤖💥

Google unveils new AI and accessibility features for phones, cars, and wearables at MWC, including message crafting with Gemini, AI captions, summarizing texts in Android Auto, and enhanced Wear OS passes. 📱🚗

Spotify's much-anticipated HiFi lossless streaming remains MIA, stirring frustration among audiophiles. Despite hints of progress, the feature's absence, now three years post-announcement, suggests a premium "Supremium" tier could be its future home. 🎧💔

💻️ Hyperaide - The Task Manager For High Performance Pros

🐛 Octomind - Find bugs before your users do with AI

📈 Gotrends - Google Keyword Planner mobile app in your pocket

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