Nvidia is Yahoo Finance Company of the Year 2016

Vipress28 · December 21, 2016

Disclaimer: I own no stocks bonds or mutual funds at all, i just thought this article was interesting and wanted to share it here.

http://finance.yahoo.com/news/nvidia-the-yahoo-finance-company-of-the-year-173130275.html

This just blew me away. Nvidia revenue apparently grew 11 fold between 2000 and 2008 before the USA Recession hit that year, and then has apparently Tripled in just the past year or so.
Apparantly Gaming is now a $100 Billion dollar a year industry with $27 Billion of that being in PCs.
Self Driving Cars the article proposes could be a $40 billion a year industry within the next decade ((i personally doubt this, most people i've ever met enjoy driving and wouldn't ever want a computer to drive for them entirely, i still remember the controversy over Anti-Lock Brake Systems that lead consumers to push car manufacturers to make some cars without it for a few more years past the original change over and push them to make ABS able to be turned off/disabled if the customer didn't want it.))
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Excerpt:
"

Room to run

Is Nvidia a bubble? Wall Street doesn’t think so. Even with the stock up 193% so far this year, 28 analysts surveyed by S&P Capital IQ predict the stock will outperform, on average, during the next 12 months. S&P forecasts that revenue will grow another 29% during the next two years, with the profit margin rising to 25%, which would be higher than Apple’s current margin. No wonder the popular refrain among investors following the company is that Nvidia is the next Intel.

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so 28 analysts still despite all the stock price growth think Nvidia will Outperform the markets indices like the Dow Jones Industrial Average, & the Standard & Poors 500 Index of the top 500 companies. Outperform is almost never listed on a stock as analysts are usually far too conservative to back a stock that strongly. for 28 of them to say that says something in my view and is amazing.

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Excerpt:

"The overall mix of the large-and-still-growing businesses, with key investments in the most fertile technologies of the future, explains why investors love the company. “The gaming business provides the scale,” says Wang of ARK Invest. “If a 5-person startup did this, it would be very costly. Because Nvidia sells tens of millions of gaming GPUs every year, they have the gaming business to subsidize the whole effort. It’s kind of like Google has its search business subsidizing the whole rest of the company.”"
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It states Intel is trying Acquisition strategy to get its hands on AI tech, that AMD is trying to invest more in its graphics division from the ATI acquisition to try to catch up, that Facebook & Google/Alphabet are trying to in-house develop AI to avoid future dependency on Nvidia, and they forgot to mention things like how Microsoft created FGPA(Field Gate Programmable Array) chips for its Azure Cloud Data Centers instead of relying on Nvidia chips for that purpose.

The article emphasizes though that Nvidia is "First-Mover" ((basically first major company to get to market with a product)) in most of the categories the article mentions, and that the overall markets are growing faster then the competition and everyone else is still playing catch-up.

Personal Opinion if anyone catches up to Nvidia it will be Microsoft and IBM... IBM has had Watson for years now and took the lead in developing Quantum Computing while most other major businesses were still saying it wasn't possible at all or wouldnt be for 10-20 more years..... and Microsoft has literally bet the entire company on Xbox, Cortana, AI, Windows 10, Azure, & Cloud Computing... trying to become a services company like IBM already did when IBM sold off the PC business to Lenovo a while ago. Accountants Lawyers & Doctors make more money then Manufacturing Workers... anything intangible or services related generally has more revenue potential because its harder to quantify something intangible like a service being rendered/provided to you, and usually has less overhead as well allowing for greater then usual profit margin potential. More importantly.... Microsoft & IBM are finally talking to each other and collaborating again after splitting over the Windows NT & IBM OS/2 issues they had between them.

As big as Google & Facebook & Apple have become, and with all the hardware production shifted to Lenovo Dell Hewlett-Packard and others, IBM & Microsoft can partner all they want now or even merge if they really wanted too without being a monopoly since markets are so globalized now and both of them have exited a lot of their former business ventures. I don't think they will ever merge or want to merge, but i think they finally saw about 3-5 years ago the threat posed by Google and Facebook, and that what we are seeing now from them is them beginning to adapt and respond to it ((it generally takes enterprise scale organizations 5-10 years to react to something like Google's sudden and meteoric rise if they can't manage to squash something like Google before it gets off the ground)) as i think they realized they were in danger of being made legacy companies and their funding sources slowly evaporating if that were to happen. ((perception can be reality, banks and lenders have been known to ruin incredibly successful corporations just because they perceived them to be old or legacy or no longer as profitable, even if those companies still actually had decades of revenue generation left in them...banks and investors tend to want money now rather then later, so if they think Google would make them 100 dollars now while Microsoft would make them 50 now and 500 in the next 2-3 years they would be likely to go with google in many cases... Disclaimer: extremely over simplified example.)) So yes if anyone catches Nvidia i think it would be IBM & Microsoft, possibly with Intel as a third partner.

Anyway, mainly i just liked this article for the history it provided about Nvidia as i don't really know anything much about them or the graphics card industry in general, and i liked the additional information the article gave about what Nvidia is up to/working on besides gaming, and that they seem to be using the gaming revenue for good purposes and for growing the company rather then stuffing their products... and the article caught my attention because it isn't every day a graphics card company i considered to be an obscure company that i really knew nothing about til LTT got me interested in it and interested in technology in general again, wins a company of the year award from someone like Yahoo Finance or CBS Market Watch, the two primary Mainstream sources for USA consumers to begin learning about economics and the stock market.

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Yahoo was built on 3 Pillars, Search, E-mail, & Finance essentially...

Their search engine was better then AskJeeves, Lycos, Microsoft/MSN, or any of the other myriad competitors until Google came along and even then at first it was still on par with Google for the first 3-5 years and better at some types of searches... when everyone gave up on MSN search but many were still subscribed to the MSN service, Microsoft even brought in Yahoo to power their search to give MSN a shot in the arm/lifeline to keep it going and buoyed for a few more years...they were considering Google as a search provider at the same time but went with Yahoo because of some fundamental disagreements with the way Google is and because that was right at the time Google was growing so fast that it had become a threat to Microsoft, while Yahoo & Microsoft have always operated in different complimentary spaces.

Their E-mail was the first E-mail many people ever signed up for as most e-mail at the time was tied to a school business governmental entity library and would only be allowed to be used while you were affiliated with the issuing organization etcetera and there was still talk at the time about nationalizing e-mail and putting it underneath the United States Post Office purview to give it a shot in the arm financially....thank the Clinton Administration for their preventing this from happening... as free global internet was a major tenet for Mr. Clinton and especially Mr. Gore....Yahoo's email was really the first true national/global E-mail service the public responded well to, and it came at just the right time when having an E-mail account became a requirement to use many of the sites on the internet.

Yahoo Finance though is a large part of why Yahoo Still exists... Yahoo has always strived to have an exceptional News department and superb Finance department... & because it was free while nearly every other economics learning tool at the time was a paid service...schools quickly picked up on it to allow them to start offering basic economics and stock market lessons to more students...at the time in the late 90s/early 2000s CBS Market Watch was still partly a paid service and if you wanted to look up more then a couple stock ticker symbols or get more information about the company other hten just the current share price you had to be a paid member... This gave Yahoo Finance a huge market-leading position in Economics Education and Consumer Financial Information. To many people Yahoo Finance is as well-respected as the Wall Street Journal and CNBC. Plus Yahoo Finance has always been focused more to consumers and low and middle classes, and it brought to bear alot of graphs charts and statistical resources that were expensive to have or have access to up until that time that it was able to bring to bear because of being a web/technology company.

Yahoo Search has always just been the thing to drive revenue and pull people in and get advertisers to sign up and support the other services... people stayed because of Yahoo Finance, Yahoo Email, News, the old Yahoo Music Service, and more niche things like GeoCities and what-not. Yahoo was also always designed to be a community with a member directory and the like.. another big part of Yahoo's success was the fact they've always prided themselves on being a kid-friendly and family friendly company.

For years Yahoo's only competition as a homepage/web presence was America On-Line, which was never able to really seriously compete with what Yahoo has always offered.

the Two things that hurt Yahoo were Google's sudden rise that Yahoo was caught blindsided by and didn't have the managerial talent in place to properly mitigate it or respond to it as the scope of things Google was doing and wanted to do was beyond Yahoo's dreams and aspirations plus Google had massive funding under it from the get-go while Yahoo had always struggled to obtain mainstream investor/bank funding as they never saw potential in Yahoo. so you can imagine when Google came along offering less then what Yahoo had already in place and was able to obtain the kind of funding Yahoo had always dreamed about but never had. the second thing after Google that hurt Yahoo was President Obama declaring during the 2008 Presidential Campaign that he used his BlackBerry & a Yahoo E-mail account because both were more secure then the accounts the Government wanted him to start using, and at one point he even pretty much dared people to hack his Yahoo E-mail.

Needless to say, from that point on, Yahoo which was really never seen as a hacking target much before that point and was always liked and well respected by most people online that i ever came across and everyone always thought hacking Yahoo just would have been a pointless waste of time...well after the future POTUSA said those remarks... Yahoo has had security breaches and Issues ever since...

& you know Yahoo is a successful company because the two biggest hacks they've reported as a result of the Verizon buy-out...the first one was 500 million accounts breached, the second one was 1 billion accounts breached...

Can you imagine how much Microsoft would pay to have a billion Xbox Live Accounts? how much Time Warner Cable now owned by Charter Communications would pay to have a billion cable subscribers? I don't think Windows 10 is even on 1 billion computers yet but over 1 billion yahoo accounts exist.... Most companies would kill to have that kind of reach/subscriber base, but yet Yahoo has it and has trouble getting funding and gets scoffed at... All Yahoo has needed is better leadership to keep it innovating and going and to continue to differentiate it from Google and continue to focus on being a source of information for consumers and information hub etcetera.... Yahoo & Wikipedia would have been a perfect match except for Wikipedia insisting it will never be bought out by another company.

Yahoo Verizon Intel IBM & Microsoft have a lot of synergy.... give me an IBM & Microsoft designed set of computing devices Desktop Laptop & Phone/Tablet, with Verizon Calling and Internet on all of them Windows 10 on all of them, Yahoo Search and News on all of them, Powered by Intel Cpu & Nvidia Gpu technology, & Google Chrome or something comparable as the default browser and i would be very happy/elated. to have everything just work out of the box. ideally it would have Webster's Dictionary and Encyclopedia Britannica built in and a Wikipedia App built in. Xbox App and Xbox music built-in.

anyway didnt mean to get off on such a tangent...
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Just really caught my attention and impressed me and i was like "hey that's the company LTT talks about all the time getting an award from Yahoo Finance!" kind of thing.