Nvidia and other artificial intelligence (AI)-related stocks are experiencing a downturn as expectations are readjusted. In recent months, any company that mentioned AI would see its shares rise, fuelled by widespread optimism for AI. However, following recent announcements from ASML and Taiwan Semiconductor Manufacturing Company (TSMC), investors are beginning to take a closer look at the promises surrounding AI, questioning its viability and long-term impact. This questioning has led to an increase in scepticism, prompting company directors to re-evaluate their communications to reassure investors. The key for investors will now be to determine whether AI brings a tangible change to the products and services on offer and whether it represents real value rather than just a selling point.
NVIDIA Corporation is the world leader in the design, development, and marketing of programmable graphics processors. The group also develops associated software. Net sales break down by family of products as follows:
- computing and networking solutions (55.9%): data center platforms and infrastructure, Ethernet interconnect solutions, high-performance computing solutions, platforms and solutions for autonomous and intelligent vehicles, solutions for enterprise artificial intelligence infrastructure, crypto-currency mining processors, embedded computer boards for robotics, teaching, learning and artificial intelligence development, etc.;
- graphics processors (44.1%): for PCs, game consoles, video game streaming platforms, workstations, etc. (GeForce, NVIDIA RTX, Quadro brands, etc.). The group also offers laptops, desktops, gaming computers, computer peripherals (monitors, mice, joysticks, remote controls, etc.), software for visual and virtual computing, platforms for automotive infotainment systems and cloud collaboration platforms.
Net sales break down by industry between data storage (55.6%), gaming (33.6%), professional visualization (5.7%), automotive (3.4%) and other (1.7%).
Net sales are distributed geographically as follows: the United States (30.7%), Taiwan (25.9%), China (21.5%) and other (21.9%).