The current competitive situation is very important forNVIDIA CorpNot optimistic, it is possible for a company to be dominant or to share the world with its competitors.
NVIDIA Corp confirmed that graphics card brand Quadro officially withdrew from the "graphics card circle", a period of 21 years of history ushered in the end.
Recently, NVIDIA Corp released new graphics card products at the GTC 2020 fall Station event, and made adjustments to the original brand types. The company released a new generation of professional graphics cards RTX A6000 and RTX A40 based on ampere architecture, but it is worth noting that the word "Quadro" has disappeared, and NVIDIA Corp officially confirmed this later.
Since the beginning of this year, NVIDIA Corp has made many moves, and his stock price has also ushered in a "highlight moment" at the same time. As of press time, the share price has risen more than 137% this year, with a market capitalization of $344.78 billion. Behind the sharp rise in the stock price, many actions of NVIDIA Corp have been concerned by the capital market, and so is the "retirement" of the professional graphics card Quadro.
The action of simplifying the brand is not the first example. NVIDIA Corp quietly gave up the calculation card before.TeslaThis brand has also experienced decades of development. The streamlining and integration of graphics card products seems to have become a direction of NVIDIA Corp, in addition, the company also has a lot of layout for products. FaceAMD、IntelWhat are the deeper intentions of NVIDIA Corp's frequent movements at this time, such as the competition of the technology giants?
Professional graphics card brand "retired"
Count the highlight moments of Quadro
As a GPU manufacturer for many years, NVIDIA Corp not only has outstanding performance in game graphics cards through the Geforce series, but also has his own world in the field of professional graphics cards. In the 21 years of naming professional graphics cards after Quadro, his "service" career has brought great value to NVIDIA Corp.
In the early days, unlike the competition between Geforce and Radeon series in the consumer graphics market, NVIDIA Corp has an absolutely leading market share in the field of professional graphics.
According to the data, Quadro's market share was about 95% in 2009. It is worth mentioning that GeForce sales account for more than 66 per cent of NVIDIA Corp's product sales, but it is Quadro workstation professional graphics cards that contribute 66 per cent of profits. Its performance is enough to reflect the strength of the Quadro brand at that time.
Quadro's professional performance not only serves the middle and high-end market, NVIDIA Corp subdivides its product line to ensure that all kinds of users find their own type. The introduction of cheap professional graphics cards for entry-level graphics workers lowers the threshold for the use of Quadro and allows more drawing users to transition from consumer level to professional level.
It is based on this point that Quadro has brought professional customers in different industries to NVIDIA Corp. Coupled with the professional level brought by the excellent performance, Quadro has a stronger customer stickiness.
Professional graphics cards are used in graphics, high-definition content display, medical and other aspects, such as medical imaging process is completed by Quadro. When providing solutions, some large-scale medical equipment manufacturers at home and abroad integrate NVIDIA Corp's Quadro professional graphics products, such as GE,Siemens、BarkerMedical imaging. In addition, it has also accumulated a large number of small and medium-sized enterprise customers.
Due to the advantages accumulated in the professional market for many years, NVIDIA Corp has hardly encountered any threatening competitors in the professional visualization market and occupies 90% of the market share. Judging from the quarterly revenue in the past two years, this sector has remained stable in the past.
Although due to the limitations of the overall market size, we can not see the substantial growth of revenue in this sector, but due to its lack of effective competition, Intel Corp holds the active pricing power and has a high profit margin. In professional graphics cards, even if there are late entrants, it is difficult to compete with them.
The game business was "eaten" by AMD.
"King of graphics cards" cannot escape the change of the times.
NVIDIA Corp initially had five branded product lines, including Gefore, Quadro, Tesla, Tegra and ION. The purpose of developing a variety of products is to occupy market share in various functional segments, and the launch of subdivided brands can meet the high-performance needs of users for CPU or GPU. However, NVIDIA Corp has been enhancing the performance of a single product, and after a comprehensive upgrade of a single product, the overlap between the computing card and the graphics card is getting higher and higher.
Game graphics card has been NVIDIA Corp's main source of revenue, the company's revenue in this business has slowed down or even shrunk. Data show that Intel Corp's revenue from FY20Q2 to FY21Q2 was $16.59,14.91,13.39 and $1.654 billion. If you exclude the latest quarterly data due to the favorable environment, the growth of this sector is indeed not optimistic, and FY2019Q4's game chip has experienced a sharp contraction compared with the previous quarter.
Therefore, NVIDIA Corp has been developing to enhance the performance of his own products, the launch of TITAN and RXT 30 series of game graphics cards in the market has a strong game performance.
Although NVIDIA Corp has occupied an absolute leading position in the global GPU market for decades, he now has to face the challenge brought by AMD by virtue of advanced technology. There are NVIDIA Corp and AMD players in the global GPU, but in previous quarters NVIDIA Corp's market share was grabbed by AMD. NVIDIA Corp currently has a 70 per cent share of the GPU market, compared with 80 per cent in 18 years.
In 1919, AMD launched the world's first 7nm game graphics card, which had a fierce confrontation with NVIDIA Corp's high-end graphics card. Due to the good performance of AMD graphics cards and more reasonable pricing, the situation in the GPU market has quietly changed. Combined with the revenue data of NVIDIA Corp game chip mentioned earlier, the balance between the two seems to be tilting to AMD.
The continuing threat from AMD is obviously one of the reasons why NVIDIA Corp is accelerating the improvement of graphics card performance, which is also reflected in NVIDIA Corp's recent price concessions.
In addition, NVIDIA Corp has been expanding into the computing field to strengthen the revenue structure, which gradually narrows the performance and pricing differences between professional graphics and computing cards. In order to prevent users from confusing different product lines when choosing products, the company chooses to integrate the two products with different needs.
Even though the two still focus on specific requirements, the underlying hardware is the same. After the two groups are merged into a single product line, NVIDIA Corp can meet the different graphics processing and computing needs of professional and commercial customers at the same time.
Generally speaking, NVIDIA Corp has been making continuous efforts on product performance, and the rapid changes in the pattern of the chip market have accelerated the iteration of product updates. Only by introducing products with stronger comprehensive capabilities can they occupy a dominant position in the market for a long time. Today, the market demand for massive data has further promoted the technological changes of a number of giants such as NVIDIA Corp, AMD, Intel Corp and so on, and the data center has gradually become their goal.
The rise of data Center into the Dark Horse of Revenue
Can NVIDIA Corp open up a new growth curve?
Intel Corp used to rely on the game chip business, and the recession in the PC industry suppressed GPU sales. PC computers have been shrinking since 18 years. The environmental impact in 2020 boosted market sales, but it is undeniable that the PC industry is reaching the ceiling, so the growth of the company's game chip business will be limited.
NVIDIA Corp seems to have realized this, actively expanded the data center business, and gained a lot. The latest quarterly revenue of the data center business was $1.752 billion, surpassing the game chip business as a core source of revenue for the first time, according to the financial report. FY20Q3-FY21Q1 is 7.26,9.68 and 1.141 billion US dollars, the performance of this sector in recent quarters obviously shows a month-on-month growth trend.
The company now accounts for more than 80% of the data center GPU market, similar to the development of the game chip business in 18 years, and has gradually become a leader in this field.
Currently includesAlphabet Inc-CL C、Amazon和Facebook IncAbout 3000 companies use NVIDIA Corp's GPU chips to meet the demand for artificial intelligence. The company has mastered a large number of customer resources and accumulated a leading advantage. Recent relationship withMicrosoft Corp、AssociationCollaborate to develop a super-converged hybrid cloud that allows the use of cloud services in the enterprise's data center, which will help enterprises reduce costs, improve infrastructure flexibility, and so on.
What is more worth mentioning is that NVIDIA Corp has recently been adding code to his data center business to enhance his core competitiveness in this field. Recently, at the GTC conference, the company announced the launch of a data processing unit (DPU) to take over more tasks in the data center, and announced plans to develop new chips, with the aim of grabbing more market share from its main competitor, Intel Corp CPU.
In addition to internal research and development, NVIDIA Corp also expanded his position as a data center through continuous acquisitions. The previous acquisition of Mellanox for $6.9 billion will get its network technology, and the acquisition of Arm for $40 billion will get its excellent computing power. Through two mergers and acquisitions, the technological advantages of the acquired parties can be applied to their own product R & D centers, and higher product competition barriers can be established.
At present, it is too early to affirm NVIDIA Corp's potential only from the latest performance and development plan of the data center business. It will take time to see whether the business can support revenue growth in the long run. The dependence on game chip revenue has existed for a long time, it is difficult to get rid of in the short term, and business transformation is accompanied by high risk for any company.
After NVIDIA Corp announced the acquisition of ARM, it was reported that AMD was working with FPGA chip manufacturersSailingsiTo discuss the acquisition plan, FPGA is an indispensable part of opening up the 5G communications, data center and self-driving market. In addition, Intel Corp already acquired Altera, a competitor of Cyrus, as early as 2005. Obviously, the acquisition attempts of the two giants are aimed at the data center business that NVIDIA Corp focuses on.
AMD launched its data center business late, but recently announced that it had gained a 10 per cent market share. If the acquisition is completed, the market share is expected to further expand, which will pose a greater threat to NVIDIA Corp. And NVIDIA Corp's acquisition plan for ARM has not been formally finalized, which was opposed by other countries a few days ago, making this plan more and more uncertain.
The current competition situation is not optimistic for Yingweida. It is possible for a company to dominate or share the world with its competitors. For the follow-up development of NVIDIA Corp's business, American Stock Research Agency will continue to pay attention to.