NVIDIA 3Q16 Earnings Call Notes

Jen Hsun Hwang

Gaming is no longer just about gaming

“And then the third is gaming is no longer just about gaming. Gaming is part sports – part gaming, part sports and part social. There are a lot of people who play games just so they can hang out with their other friends who are playing games. And so it’s a social phenomenon and then, of course, because games are – the quality of games, the complexity of games in some such as League of Legends, such as StarCraft, the real-time simulation, the real-time strategy component of it, the agility – the hand-eye coordination part of it, the incredible teamwork part of it is so great that it has become sport. And because there are so many people in gaming, because there is – it’s a fun thing to do and it’s hard to do, so it’s hard to master, and the size of the industry is large, it’s become a real sporting event.”

The only way we’re going to be able to discern IoT is through AI

“And then the third – so hyperscale, enterprise computing, and then the third is something very, very new, it’s called IoT. IoT, we’re going have a trillion things. We’re going to have a trillion things connected to the Internet over time, and they’re going be measuring things from vibration to sound to images to temperature to air pressure to you name it. Okay? And so these things are going be all over the world and we’re going to measure – we’re going to be constantly measuring and monitoring their activity. And using the only thing that we can imagine that can help to add value to that and find insight from that is really AI. Using deep learning, we could have these new types of computers. And they will likely be on premise or near the location of the cluster of things that you have. And monitor all of these devices and prevent them from failing, or adding intelligence to it so that they add more value to what it is that people have them do.”

Tesla is 5 years ahead of the competition in self driving

“Yeah, that’s – I don’t know that I have really granular breakdowns for you, Craig, partly because I’m just not sure. But I think the dynamics are that self-driving cars is probably the most single most disruptive event – the most disruptive dynamic that’s happening in the automotive industry. It’s almost impossible for me to imagine that in five years’ time, a reasonably capable car will not have autonomous capability at some level, and a very significant level at that. And I think what Tesla has done by launching and having on the road in the very near-future here, a full autonomous driving capability using AI, that has sent a shock wave through the automotive industry. It’s basically five years ahead. Anybody who’s talking about 2021 and that’s just a non-starter anymore. And I think that that’s probably the most significant bit in the automotive industry. I just don’t – anybody who is talking about autonomous capabilities in 2020 and 2021 is at the moment re-evaluating in a very significant way.”

Colette Kress

Datacenter up 59%, driven by AI

“Cloud GPU computing has shown explosive growth. Amazon Web Services, Microsoft Azure and AliCloud are deploying NVIDIA GPUs for AI, data analytics and HPC. AWS has recently announced its new EC2 P2 instance, which scales up to 16 GPUs to accelerate a wide range of AI applications, including image and video recognition, unstructured data analytics and video transcoding.”