NVIDIA CORPORATION

 NVIDIA CORPORATION (NVDA)

NVIDIA Corp. is a company that makes computer graphics processors, chipsets, and related multimedia applications. The Graphics Processing Unit (GPU) and Tegra Processor portions are responsible for its operation. GeForce for games, Quadro for designers, Tesla and DGX for AI data scientists and big data researchers, and GRID for cloud-based visual computing users make up the GPU section. Tegra Processors combine GPUs and multi-core CPUs to power supercomputing for autonomous robotics, drones, and vehicles, as well as consoles and mobile gaming and entertainment devices. Jen-Hsun Huang, Chris A. Malachowsky, and Curtis R. Priem formed the company in January 1993, and it is based in Santa Clara, California.

Company Profile

Market Cap: 447.115B​​Industry: Semiconductor

Sector(s): Technology​​​CEO: Jen Hsun Huang​

Founded: 1993​​​Headquarters: Santa Clara, California, USA

Employees: 22,473

As of May 17, 2022

Historical Insight

Jensen Huang (CEO as of 2022), a Taiwanese-American who was previously director of CoreWare at LSI Logic and a microprocessor designer at Advanced Micro Devices (AMD), Chris Malachowsky, an electrical engineer who worked at Sun Microsystems, and Curtis Priem, a senior staff engineer and graphics chip designer at Sun Microsystems, founded Nvidia on April 5, 1993.

The three co-founders believed that accelerated or graphics-based computing was the way to go for the next wave of computing in 1993 because it could solve problems that general-purpose computers couldn't. They also noticed that video games were one of the most computationally difficult problems while also having a massive sales volume.

Video games became the company's flywheel for reaching vast consumers and funding extensive research and development to solve massive computational issues. The company was founded with only $40,000 in the bank. Sequoia Capital and others contributed $20 million in venture capital funding to the startup. Nvidia had no name at first, so the co-founders dubbed all of their files NV, as in "next version." The co-founders needed to incorporate the company, so they looked up all words with those two letters, which led them to "invidia," the Latin word for "envy." On January 22, 1999, Nvidia went public.

Acquisitions and Releases

Nvidia's reputation for producing strong graphics adapters was cemented with the debut of the RIVA TNT in 1998. Nvidiadebuted the GeForce 256 (NV10) in late 1999, bringing onboardtransformation and lighting (T&L) to consumer-level 3D hardware for the first time. It implemented powerful video acceleration, motion compensation, and hardware sub-picture alpha blending and running at 120 MHz with four-pixel pipelines. By a significant margin, GeForce beat current products.

Nvidia received a $200 million advance for developing graphics technology for Microsoft's Xbox game system as a result of the success of its goods. However, the endeavor diverted many of the company's top engineers from other projects. This didn't matter in the short term, since the GeForce2 GTS was released in the summer of 2000. In December 2000, Nvidia agreed to purchase the intellectual property of 3dfx, a pioneer in consumer 3D graphics technology who led the sector from the mid-1990s to 2000. In April 2002, the acquisition was completed.

Nvidia bought Exluna for an unknown price in July 2002. Exluna developed software rendering tools, and its employees were absorbed into the Cg project. Nvidia paid around $70 million for MediaQ in August 2003. Nvidia bought iReady, a developer of high-performance TCP/IP and iSCSI offload systems, on April 22, 2004. Nvidia stated in December 2004 that it would help Sony design the graphics processor (RSX) for the PlayStation 3 game machine.

Nvidia purchased ULI Electronics on December 14, 2005, which at the time was supplying ATI with third-party south-bridge parts for chipsets. Hybrid Graphics was acquired by Nvidia in March 2006. The US Department of Justice issued subpoenas to Nvidia and its primary rival in the graphics business, AMD (which had purchased ATI), in December 2006, regarding alleged antitrust breaches in the graphics card sector.

Company of the Year 2007

Forbes selected Nvidia Company of the Year in 2007, recognizing the company's achievements throughout that time period as well as the prior five years. Nvidia announced the completion of its acquisition of PortalPlayer, Inc. on January 5, 2007. Nvidia purchased Ageia, the creator of the PhysX physics engine and physics processing unit, in February 2008. Nvidiarevealed that the PhysX technology would be included in future GPU devices.

Mobile Chipsets and GPUs

After reporting that certain mobile chipsets and GPUs made by the company had "abnormal failure rates" owing to manufacturing issues, Nvidia announced a $200 million write-down on its first-quarter revenue in July 2008. Nvidia, on the other hand, did not specify which products were affected. In September 2008, Nvidia was named in a class action complaint alleging that the defective GPUs were used in Apple Inc., Dell, and HP laptop models. Nvidia struck an agreement in September 2010 to reimburse owners of impacted laptops for repairs or, in some situations, replacement. Nvidia and Intel inked a six-year, $1.5 billion cross-licensing agreement on January 10, 2011, putting an end to any litigation between the two firms.

Finances Data

Now let’s talk about the year 2020. Nvidia reported earnings of US$2.796 billion in the fiscal year 2020, with yearly revenue of US$10.918 billion, down 6.8% from the previous fiscal cycle. In January 2021, Nvidia's stock was trading at over $531 a share, with a market capitalization of over US$328.7 billion.

Nvidia reported sales of $3.87 billion in the second quarter of 2020, up 50% from the same period in 2019. The increased demand for computer technology and the increase in sales. The effects of the pandemic will "likely mirror this transition in enterprise workforce patterns with a higher attention on technologies, such as Nvidia laptops and virtual workstations, that enable distant work and virtual collaboration," according to Colette Kress, the company's financial head.

Year	Revenue in mil. US$	Net income in mil. US$	Total assets in mil. US$	Price per share in US$	Employees
2010	3,326	−68	3,586	12.56	5,706
2011	3,543	253	4,495	15.63	6,029
2012	3,998	581	5,553	12.52	5,042
2013	4,280	563	6,412	13.38	7,974
2014	4,130	440	7,251	17.83	6,384
2015	4,682	631	7,201	23.71	6,384
2016	5,010	614	7,370	53.76	9,227
2017	6,910	1,666	9,841	149.79	10,299
2018	9,714	3,047	11,241	232.38	11,528
2019	11,716	4,141	13,292	174.59	13,277
2020	10,918	2,796	17,315	395.63	13,775
2021	16,675	4,332	28,791	294	18,975
2022	26,914	9,752	44,187	170	22,473