All right, welcome back to the Tech Corner on George Silas, Senior Markets Contributor.
好的，歡迎回到科技專區，我是資深市場撰稿人George Silas。
00:08
Here with the Schwab Network.
來自嘉信理財網絡。
00:10
Today we're going to re-evaluate NVIDIA Incorporation.
今天我們將重新評估輝達公司。
00:12
In fact, if you want to watch the first video on NVIDIA back in March, you can click above.
事實上，如果您想觀看三月份關於輝達的第一部影片，可以點擊上方連結。
00:17
Now NVIDIA Incorporation is a leading infrastructure computing technology company, known primarily for its innovations and accelerated computing.
輝達公司是一家領先的基礎設施運算技術公司，主要以其在創新和加速運算方面的成就而聞名。
00:25
The company operates through two main segments, computing and networking, as well as graphics.
該公司主要透過兩個業務部門營運：運算與網路，以及繪圖。
00:30
Now the computer networking segment includes data center, accelerated computing platforms, AI solutions, networking and automotive platforms.
運算與網路部門包括資料中心、加速運算平台、人工智慧解決方案、網路和汽車平台。
00:37
This segment also covers robotics and cloud computing services.
此部門還涵蓋機器人技術和雲端運算服務。
00:41
The graphics segment offers GeForce GPUs for gaming and PCs and RTX GPUs for enterprise graphics.
繪圖部門提供用於遊戲和個人電腦的GeForce GPU，以及用於企業繪圖的RTX GPU。
00:48
NVIDIA's GPUs are celebrated for their parallel processing capabilities, which are essential for deep learning algorithms and AI solutions.
輝達的GPU以其平行處理能力而聞名，這對於深度學習演算法和人工智慧解決方案至關重要。
00:55
Most of the core secular growth has been in data center solutions as of late, but the company also supports a wide range of industries including healthcare, automotive and manufacturing with solutions tailored to specific applications.
Now when it comes to competition, main-state domestic competitors include companies like advanced micro devices, symbol AMD, Intel Incorporated, as well as Broadcom, symbol AVGO.
On an international front, companies like Huawei and China are main-state competitors as well.
在國際方面，像中國的華為等公司也是主要競爭對手。
01:22
Now let's take a look at some of the unique value propositions behind NVIDIA.
現在，讓我們來看看輝達的一些獨特價值主張。
01:26
First, one unique value lies in its comprehensive platform strategy that integrates hardware software as well as AI solutions. The company's proprietary programming model and domain-specific software libraries enable superior performance in AI model training as well as inference.
The company's extensive experience in investment in research and development further solidifies its position as the pioneer in industry, delivering advanced solutions across various sectors.
該公司在研發方面的豐富經驗和投入，進一步鞏固了其作為行業先驅的地位，為各個領域提供先進的解決方案。
01:50
Now in recent news, going back to November 20th, the company reported its Q3 financials whereby both top and bottom line numbers beat estimates. The company said it earned $1.30 per share on an adjusted basis as well as revenue that soared 62% year-over-year, that came in at around
$57.01 billion. Advancing forward to the fourth quarter of fiscal 2026, NVIDIA expects to generate $65 billion in revenue versus the $62 billion approximate forecasted revenue prior to the earnings announcement. Exceptional revenue growth last quarter was fueled by robust demand from generative
AI labs and hyperscalers. The data center segment, which compromises the largest constituent of sales, drove 66% year-over-year growth with vigorous demand for both the US and European clients, which offset most of the decline in Chinese revenue due to export restrictions.
They even guided as a company for fiscal Q4 with gross margins over 75%, which reinforces the strong AI data center growth in earnings trends. Also, most recently, NVIDIA is under pressure after a report that meta-platforms is in talks to spend billions of dollars on Google's AI chips,
which presents a formidable competitor. Now we have to consider lots of positives with NVIDIA.
這帶來了一個強勁的競爭對手。現在我們必須考慮NVIDIA的許多利好因素。
03:00
First off, Q3 earnings highlighted effective data center growth, driven by significant demand for blackwell GPUs and a robust order book extending into 2026. This positions NVIDIA as a leader in the AI market. NVIDIA's dominance in AI and data center GPU markets means demand from big tech,
which continues to invest heavily in AI, is bolstered by strong spending, suggesting robust long-term demand for its blackwell GPUs. NVIDIA's financial performance is underpinned by a strong balance sheet and significant free cashflow, enabling ongoing investments in R&D as well as strategic expansions. The company also has high profitability when compared to sector competitors,
as well as its own five-year averages. This translates into high efficiency. For example, gross margins on a four-quarter trailing basis top 70%, well above the sector meaning of around 49%, as well as its own historical averages on a five-year basis of 66%. This highlights the
company's effectiveness in converting sales into profits. Now despite over $4 trillion in market capitalization, NVIDIA's valuation may still be considered cheap when considering looking at it from a peg racial standpoint, which is essentially looking at the PE ratio to its growth rate. For
instance, the PE ratio on a forward basis is estimated to be based on consensus at around 39 times earnings. However, its earnings estimates in terms of growth rates are expected to be over 80%.
預期本益比根據共識預計約為39倍盈利。然而，其盈利增長率預計將超過80%。
04:21
This suggests a peg ratio of less than one, which may be a good value considering its growth rates.
這意味著PEG比率小於1，考慮到其增長率，這可能是一個不錯的價值。
04:26
Now despite the positives I just addressed, we also have to address some of the concerns.
儘管我剛才提到了這些利好因素，我們也必須討論一些擔憂。
04:31
First off, there are concerns about a potential AI spending bubble which have recently been raised, which could impact NVIDIA if the market demand for AI infrastructure declines. NVIDIA's reliance in AI growth could pose risks if key deals or market conditions change unfavorably. The company's exposure to geopolitical tensions, especially regarding sales to China, still remains a concern,
possibly affecting its ability to fully capitalize on the AM market. Now competition from domestic rivals is heating up. These include companies that I mentioned earlier like AMD, Intel, as well as Broadcom. This could eventually erode market share and dominance. We have to also consider Google as a mainstay competitor, which is very formidable. Now NVIDIA's growth may normalize
eventually with concerns about the sustainability of its high growth rates and margin pressures from the production of new Blackwell chips as well. Now let's take into consideration the technical picture of NVIDIA post earnings. First off, despite a one month decline of roughly 8%, year-to-day NVIDIA's performance has still bested the broader market by nearly double.
Up 30% approximately versus the S&P 500's increase of approximately 14%. The stock right now is trading below its 20 and 50-day moving averages, which suggest near-term weakness and price action.
Let's also keep in mind that a cross back above the 50-day moving average would be a confirmation of a renewed uptrend. The stock is still above its 200-day moving average, which is pointed up indicating that the intermediate-term trend is still bullish. However, the next level of technical support of approximately $165 published in early September is still something we have
to consider alongside that rising 200-day moving average as potential support. Now in summary, NVIDIA's products are utilized by a diverse range of customers, including OEM manufacturers, cloud service providers, and automotive companies as well. The company's innovation-driven approach has led to significant investments in R&D, positioning it as a leader in the AI and accelerated
computing rights. Strong partnerships with leading cloud service providers and its robust data center solutions further reinforce its market position, making it a preferred choice for enterprises seeking scalable and efficient computing infrastructure potentially for years to come.
That's it for this week's edition of the Tech Corner. We're going to carry the theme of semiconductors next week when we revisit Intel Incorporated. Don't forget to like and subscribe!
