Nvidia & Accenture tie up
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The two enterprises announced an expansion of their close ties last night with Accenture using AI Foundary, AI Enterprise and Omniverse to help clients create a foundation for the automation of process and workflow. Nvidia will help train 30,000 accenture staff.
Accenture service 75% of the Global 100 and in this fiscal year have generated $3B in AI based consulting fees and have moved into robotics manufacturing at scale.
At the presentation, CEO Jensen Huang said 'Blackwell is in full scale production, everyone wants to buy the most and everyone wants to be first. Demand is insane'
A quick recap on the latest information vs Wallstreet's expectations. Q2 which ended July 24, revenue was $30B and a Q3 guide of $32B was given. JP Morgans forecast was $35B for Q4(which ends jan 25). It is worth remembering that just one year ago the Q4 expectation was $25B. These numbers were too low then and are still too low. We would expect $35B in Q3 and $40B in Q4 without any Blackwell contribution however there is strong evidence that Blackwell supply is material and early. We think this could add +$10B incremental revenue to Q4. $50B in Q4?
This time last year wall street forecast Nvidia calendar 2024 revenue of $75B and we thought they'd deliver $125B. If they meet expectations this quarter they will have delivered $90B with one quarter to go. Wallstreet is still playing catch up in or opinion with consensus calendar 2025 revenue forecast to be $175B. We think it will be in excess of $230B and could be as high as $250B-still very much constrained.
The reason for the additional growth is TSMC's expansion in Cowos-S (Hopper) packaging:
TSMC's CoWoS capacity will grow from 13k wpm(300mm did wafers per month) at the end of 2023 to 30-35k at the end of 2024 and 70-80k at the end of 2025. CoWoS capacity in 2025 is now significantly higher than the street's estimate just a few months ago.(reported 1 October 24). Blackwell utilises Cowos-L, a completely difference process.
We would expect calendar 2025 earnings to be in the $6 EPS range at the high end which would put earnings at around $150B for the year. For comparison Apple earns circa $100B and Microsoft, $90B
Regards
Adam
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Thanks Adam
All reads very promising….lets hope that the share price recovers and grows now and into next year -
OpenAI closed a new funding round, raising $6.6B from Microsoft, Softbank and Nvidia. This was based on a post capital raise valuation of $157B.
The company is expected to generate $3.6 billion in revenue this year, despite losses exceeding $5 billion, while next year’s revenue is projected to soar to $11.6 billion.