NVIDIA Analyst Day Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“NVIDIA is the world leader in visual computing. We are in the graphics business. We are singularly focused on the graphics business. We’re passionate about the graphics business. We are expert in the graphics business.”

“We’re end-to-end visual computing from the fundamental inventions of technologies to the processors that serve PCs, workstations, high-performance computing to mobile devices, modules that are incorporated into various computing devices to now systems we call a Visual Computing Appliance. The Visual Computing Appliance is a recent invention that makes it possible for us to put computer graphics on the network. It no longer has to be inside the box. Computer graphics can now leave the box. The benefit of leaving the box of course is that it doesn’t matter anymore what operating system your box is, it doesn’t matter how small your box is, it doesn’t even matter whether you have a box. We are no longer constrained. Our growth is no longer constrained by the limitation, the physical limitations of the devices themselves.”

“We have three target end markets; one of which is video games…Enterprise computing, the creating of the games, the designing of cars, the making of tennis shoes…third devices.”

“volume matters, the reason why we disrupted the companies we have disrupted in the past is because of volume. Volume translates to velocity, volume translate to innovation velocity, revenue velocity translates to even more energy in your business, volume matters.”

“The PC was the high volume business of our time…Today the high-volume devices, mobile, tablets, cars, TVs all of these visual devices add up to some 3 billion units in a couple of years, 3 billion units a year, billions and billions of these devices are being made. We don’t serve all of them just as we don’t serve all of the PC industry, but for us to be able to serve 20% of the PC industry and the thing that we can serve a large percentage of these devices make perfect sense to me.”

“Some of these devices, not all of them are going to want the world’s best computer graphics. Some of these devices, not all of them are going to want the visual computing capabilities that we offer. We can make a contribution here. These are our three end markets.”

“This new future has PC still utilized by many to create content for the heaviest weighted applications, for productivity, for design, for play, but surely for consumer average computing the PC is going to get supplanted by whole bunch of other computing devices that are cropping up everywhere.”

“Here lies the opportunity, and so today we will like to spend all of our time with you talking about growing beyond the PC.”

“Visual computing is more important than ever.”

“Tegra is an essential future of our company. It is much, much more than smartphones. It is everything computing to us.”

“we have three basic strategies; one, continue to investment in the future of GPUs, advance the GPU…the second strategy is to take GPU out of the box and put it on the network grid. The third, to leverage our visual computing expertise into devices…CUDA, GRID and Tegra”

“the GPU has become so complex that the question now is, do you integrate the CPU. And the answer is yes, of course. The GPU integrated CPU turned into Tegra.”

“nonetheless, as much as many markets need great GPUs, we have to recognize that long-term as we continue to go, at some point maybe the low-end part of the market, the basic PC marketplace don’t need the capabilities that the high-end does. The average users find their PCs to be good enough, in which case integration becomes a more valuable thing for that user than capability.”

“If there is anyone who is going to go disrupt the PC it ought to be us. We should take the opportunity as early as we could and as hard as we could to go build this future where their devices, where people enjoy the multimedia capability of it, it’s not designed for computing, it’s really design as a computer for enjoying content, to enjoy this device wants to have great graphics, great multimedia, great interactivity, great content all of the things that we’re good at.”

“The things that we’re good at are things that will become increasingly important in this marketplace.”

“We think of ourselves as having a core R&D platform. It’s basically the GPU. It is the beginning of almost everything we do.”

“we create new uses and the way to do that is to inspire content developers. We have to inspire them, we have to provide them technology, we have to provide them tools and we have to provide them support. So that the Adobes of the world, so that Autodesks of the world, so that SolidWorks and Dassault of the world. So that every game developer in the world can take advantage of the latest state-of-the-art ideas in computer graphics and implemented into their applications.”

“Think of GRID as a graphics card that contains a whole bunch of other graphic cards. It’s a system of graphics cards. What we’ve invented is a technology that makes it possible for you to put it on the network, to disassociate it from the basic platform. So I can give you awesome graphics even if you are using a MacBook Air, I could give you awesome graphics even if you are using a netbook. I can give you awesome graphics even if you are using an iPad.”

“The world is heterogenous now. There is no singular operating system that companies need to support. And so as a result it makes perfect sense to disassociate the computing from the data, to disassociate graphics from the device, from the computing, and because we’re moving around so much data, if you could centralize if you will put under network, digital computing you don’t have to move the data to everybody’s computer. You just do the data right there, you keep the data right there where the VCA appliance is, and you simply stream out to all of the end users. The net result of it, which is a very small amount of data relatively. If you can stream Netflix, if you can stream YouTube, you can surely stream the output of VCA, okay? The fundamental reason why GRID makes so much sense.”

“the most important thing to me is Android. You guys know this very well, aside from the iPhone, the rest of the world really didn’t ignite into this incredible growth until Android took off. Android has two characteristics about it that’s really amazing. It’s very, very unique. One, it is really the embodiment of the spirit of Linux. It’s open. It’s the freedom OS. It’s the OS of the people. It embodies the spirit of Linux. Well it embodies the spirit of Linux, but in a guided sort of way, so it’s not too chaotic because as you know, the markets they could be very chaotic. And so android is a bit like a guided Linux.”

“But the other capability that Android provides is, Android has all the services that Google provides, the valuable services. The day that you sign on to the Android, you have Chrome, you have YouTube and you have search, you have maps, you have all those Google Play apps, it’s a rich ecosystem. It’s a useful platform.”

“tablets especially are gaming devices, about a third, about 40% of the people who use their smartphones, they spend about 40% in time playing games but about two thirds of the time spent on the tablets playing games”

“That stands to reason why mobile. So mobile devices, mobile gaming it’s a real focus, consumers enjoy using it, and game developers are really focused on it. ”