The $8 billion auto pipeline should begin to bear fruit in the year’s second half and into 2023, although its impact will mostly be felt from 2024 onwards when the Mercedes software partnership will “ramp.”Īnd of course, there’s the Omniverse – what the company calls the metaverse for engineers – an opportunity both from a hardware and software standpoint.

Gaming and data center have been the main breadwinners, but Nvidia is extremely well-positioned to ride other secular trends. While the space is increasingly competitive, the company believes its “unique software platform and developer ecosystem provide it with a competitive advantage that competitors cannot easily replicate.” At the same time, the seasonality that usually affects 1H should be limited this year due to “tight supply and broadening of demand from US to China.”Ģ022 should also see an extension of the “strong” data center momentum in 2H21, with hyperscale customers “scaling” deep learning in AI workloads and continued enterprise recovery and further AI penetration in vertical markets. In any case, constraints are expected to abate in the year’s latter half.Īrya also notes Nvidia is still “very early in its ray-tracing (RTX) upgrade cycle.” With only roughly 25% of Nvidia gamers having already upgraded, unit and ASP growth should get a further boost from upgrades in 2022.

Throughout 2021, gaming demand outpaced supply, and while capacity “remains a bottleneck,” the company is making an extra effort to secure supply. Let’s have a look, then, at key takeaways from the talks.Ĭontrary to the idea that last year’s gaming growth (up by 60% YoY) was mostly down to ASP upside due to the “preference and mix” to higher priced Ampere SKUs, it was fairly split between units and ASPs. “We continue to believe the company is best positioned to address several of the most important, multi-decade secular growth opportunities with its unique, highly-leverageable accelerated compute platform,” the 5-star analyst said. With its fingers in the pies of everything from gaming, data center and crypto to auto and the metaverse, Nvidia ( NVDA ) has seen outstanding success both in real-world performance and from an investing perspective over the past few years.įollowing conversations with Nvidia’s CFO, Bank of America analyst Vivek Arya is confident the chip giant will keep on outperforming.

Nvda stock conversation