NIX Solutions reports: Nvidia is Mastering Big Data and AI

Mellanox is an important player in the Ethernet market and InfiniBand – high-speed networks used in high-performance computing.

Simply put, Nvidia plans to focus on the rapidly growing segment of technical solutions for data centers, cluster systems and cloud platforms, says Bosfera. A more familiar, marketing name of this direction is “Big Data”.

Recently, Nvidia has been developing directions of graphic accelerators for vector computing (AWS, Microsoft Azure, etc.) and artificial intelligence technology. The acquisition of Mellanox will allow the company to significantly strengthen its position, notes NIX Solutions.

Nvidia’s financial report will not be published until May 21, so investors can preview their competitors’ results: Intel and Advanced Micro Devices. Thus, analysts’ expectations for profit may change again. In February, company executives forecast quarterly revenue of $3 billion, but this estimate was revised downward by $100 million due to the coronavirus.

Meanwhile, Mellanox will report on April 23, so investors will have the opportunity to find out why Nvidia decided to pay almost $7 billion. According to the report for the last quarter of 2019, Mellanox’s annual revenue increased by 22% compared to the previous year and amounted to 1.33 billion. Net profit increased by 52.8%, to $ 205.1 million.

We are unlikely to hear any plans for the joint development of the two companies earlier than May 21, but expectations regarding the future of Nvidia are extremely optimistic. The company attracted a loan of $ 5 billion for the transaction, which is why its annual expenses will increase by $166 million. Nevertheless, the synergistic effect should contribute to a tangible increase in gross revenue. In addition, management promised to resume share repurchase transactions immediately after completion of the transaction.