By Mike Genna, Benzinga.com
A recent interview conducted by Techcrunch and reported by Forbes quotes NVIDIA co-founder and CEO, Jen Hsun Huang regarding the company’s inability to meet market demand for its graphics processing units (GPU).
"We've got to come closer to the demand of the market. And right now we're not anywhere near close to that and so we're just going to have to keep running."
-NVIDIA Co-Founder and CEO, Jen Hsun Huang
Nearly a month after the interview, the company reports a 10 percent increase in revenue for the quarter at $3.2 billion, alongside consistently smashing Wall Street EPS estimates by an average of 41 percent the past three years. Demand for GPUs in all tranches of productivity will only increase as the product begins to assert itself in the promising future of gaming and automotive technology. The rapid rise of games such as Fortnite, which boasts 3.4 million accounts as of March 1st, requires consumers to buy a compatible GPU for PCs that do not come cheap.
In the coming years we will observe an exponential increase in the demand for graphics processing units as rise of artificial intelligence and autonomous vehicles become apparent. The consumer products and devices that arise from this technology will certainly need graphics processors to allow the device to see and learn from its surroundings; even surpassing the capability of humans.
It used to seem like science fiction, but now NVIDIA has hit the ground running with its Drive PX 2 platform, a supercomputer that uses deep learning algorithms and sensors to understand its environment and navigate safely in its path. Mercedes-Benz reported in 2017 that it plans to have a self-driving vehicle on the road utilizing NVIDIA technology by 2019-2020.
NVIDIA (NVDA) has a current market capitalization of a whopping $150 billion and is up 24% YTD, while posting EPS growth of 141% YoY. The S&P 500 sits at a meager 0.6% YTD.
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