NVIDIA's overall business overview Presentation.pptx

krutikRakade 3,585 views 43 slides Mar 13, 2024
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About This Presentation

1.The company details in terms of products, market, growth, financials.
2. Competition analysis of this firm in the same industry/ from other industries
3. Five forces model analysis of the Industry. Organization structure of this firm a critique on that.
4. SWOT analysis of the company & PEST...


Slide Content

1

INTRODUCTION Pioneering Graphics Processing Units (GPUs) AI and Data Centre Solutions Diversified Portfolio and Industry Leadership

HISTORY Revolutionizing Graphics Processing Advancements in Parallel Processing and CUDA Driving AI Innovation with Deep Learning and Autonomous Vehicles

VISION & MISSION

PRODUCTS AND SERVICES GPU GeForce GTX RTX GPU with Integrated AI DGX AGX NVIDIA G-SYNC Virtual GPU – As a Iaas 5

NVIDIA MARKET CAPITALIZATION 6

NVIDIA FINANCIALS 7

COMPETITION ANALYSIS Market Share Product line-up comparison Future outlook and predictions

MARKET SHARE

PRODUCT LINEUP COMPARISON NVIDIA's Range NVIDIA offers a diverse range of GPUs catering to gaming, data centers , and professional visualization, each tailored to specific performance and efficiency needs. Intel's Offerings Intel provides a wide array of CPUs designed for desktops, laptops, and servers, focusing on power efficiency, processing speed, and scalability. AMD's Portfolio AMD's lineup includes CPUs and GPUs for various computing needs, emphasizing high performance, multi-threading, and advanced graphics capabilities.

FUTURE OUTLOOK AND PREDICTIONS NVIDIA's Growth Trajectory NVIDIA's focus on AI, autonomous driving, and edge computing positions it for continued growth and influence in evolving tech landscapes. Intel's Adaptation Strategy Intel's emphasis on innovation, chip manufacturing, and diversification is vital for adapting to dynamic market demands and sustaining leadership. AMD's Expansion Prospects AMD's aggressive technological roadmap and strategic partnerships project substantial expansion and competitiveness in the global semiconductor arena.

CUSTOMER BASE AND TARGET MARKETS

PORTER 5 FORCES MODEL The threat of new entrants is  LOW  for Nvidia due to several factors. First, the capital investment required to enter the market and develop new products is very high. This is because the design and manufacture of advanced microprocessors and graphics cards require significant research and development, as well as sophisticated manufacturing processes. The bargaining power of suppliers for Nvidia is LOW . This is because Nvidia sources components from many suppliers, and it has established long-term relationships with many of them. The level of bargaining power among buyers for Nvidia is LOW . This is because the company’s products are highly differentiated and in demand, and it has a strong reputation for innovation and quality. Additionally, many of its customers are large companies that require large volumes of chips, giving them less bargaining power individually. The threat of substitutes for Nvidia is HIGH . The primary substitute threat comes from other semiconductor and chip manufacturers that offer similar products and services. The industry rivalry among competitors is INTENSE . Nvidia faces strong competition from other players in the semiconductor and graphics processing industries, including Intel, AMD, Qualcomm, and others.

Threat of new entry- The threat of new entrants is  LOW   the capital investment required to enter the market and develop new products is very high The bargaining power of suppliers – The bargaining power of suppliers for Nvidia is LOW sources components from many suppliers, and it has established long-term relationships with many of them The bargaining power of buyers- The level of bargaining power among buyers for Nvidia is LOW This is because the company’s products are highly differentiated and in demand, and it has a strong reputation for innovation and quality. And various institutional buyers are also relying on Nvidia long term succcess Threat of substitution- The threat of substitutes for Nvidia is HIGH The primary substitute threat comes from other semiconductor and chip manufacturers that offer similar products and services Rivalry among the competitors- The industry rivalry among competitors is INTENSE Nvidia faces strong competition from other players in the semiconductor and graphics processing industries, including Intel, AMD, Qualcomm, and others

SWOT ANALYSIS: NVIDIA STRENGTHS Market Leadership in Data Center and AI: NVIDIA's revenue from this segment surged by 217% in FY 2024, reaching $47.5 billion. They dominate with their GPUs and networking solutions, powering over 75% of the world's supercomputers. Financial Robustness : In FY 2024, NVIDIA achieved revenue of $60.9 billion and a gross profit of $44.3 billion, reflecting strong scalability and profitability. Their net income stood at $29.76 billion, demonstrating financial stability and the ability to invest in R&D and strategic acquisitions. WEAKNESSES Supply Chain Concentration : NVIDIA faces risks due to its manufacturing operations being heavily concentrated in the Asia-Pacific region, relying on foundries like TSMC and Samsung. This exposes them to geopolitical risks and supply chain disruptions. Dependence on Third-Party Suppliers

OPPURTUNITIES Expansion into New Markets: NVIDIA can utilize its AI and GPU technologies to enter new markets such as healthcare, automotive, and financial services, tapping into new revenue streams and diversifying its customer base. Generative AI and Large Language Models: The rise of generative AI and large language models presents a significant opportunity for NVIDIA to capitalize on with their AI inference platforms and NVIDIA DGX Cloud services. THREAT Intensifying Competition: NVIDIA faces competition from various companies providing GPUs, CPUs, DPUs, and other accelerated computing processor products. Staying ahead through innovation and strategic partnerships is crucial. Regulatory and Geopolitical Risks : NVIDIA's operations are subject to complex regulations and geopolitical tensions, which could limit their ability to sell products in key markets and disrupt the supply chain. SWOT ANALYSIS: NVIDIA

PESTEL ANALYSIS

BCG MATRIX

COMPETITOR ANALYSIS (STAR QUADRANT) Nvidia Corporation High Market Share High Market Growth Rate Advanced Micro Devices (AMD) High Market Share High Market Growth Rate Strategy- Invest for growth Expand market share Innovate

Intel Corporation (Cash Cow) High Market Share Low to Moderate Market Growth Rate Strategy- Harvest profits Cost optimization Diversify or innovate COMPETITOR ANALYSIS (CASH COW QUADRANT)

NVIDIA PRODUCT PORTFOLIO (BCG MATRIX)

What if the firm needs to determine with Diversification ?

Ansoff Model

STRATEGIES TO ADOPT Cost Leadership VS Product Differentiation 27 Cost leadership allows business to again a competitive edge through lower price, attracting price sensitive customers And achieving economies of scale. It enables businesses to build brand Loyality and command premium Prices, leading to higher profit margin And reduce price sensitivity.

Nvidia has been involved in various digital tools and technologies across several domains, particularly in artificial intelligence, graphics processing, and data center solutions. / \ Graphics AI & HPC / \ Omniverse A100 Tensor Core GPU \ / Clara DGX Systems \ / Rapids / \ Maxine DRIVE Platform

FUTURE OUTLOOK: NVIDIA

NVIDIA TECHNOLOGIES

SPENDING ON OPERATIONS : OPERATING EXPENSES Costs and Expenses Approx. $11.13B (Fiscal Year 2023)

SPENDING ON OPERATIONS : R&D R&D Spend Approx. $7.34 billion in Fiscal Year 2023

PRODUCTS GeForce Nvidia RTX Deep Learning Super Sampling (DLSS) NVIDIA DGX Systems NVIDIA HGX

SUPPLIERS TSMC Samsung Electronics Micron Technology Foxconn Applied Materials JSI Logistics AsusTek Computer INC. Gigabyte Technology Co.Ltd OEM PARTNERS

Kraljic Matrix

STRATEGIC SOURCING BASED ON CATEGORIES

SUPPLIER RELATIONSHIP

WHAT ARE SOME POTENTIAL RISK FACTORS THAT COULD HINDER NVIDIA'S GROWTH AND SUCCESS IN THE FUTURE? Competition Price pressure Technology changes Regulation

What would be the risk mitigation efforts of NVIDIA

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