Nvidia(US:NVDA)2025-11-24 01:46Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the South Korean memory industry, focusing on companies like Nvidia (NVDA), SK Hynix, and Samsung Electronics (SEC) [1][4]. Nvidia's Performance - Nvidia reported 3QFY26 earnings with a revenue of US$57 billion, representing a 22% quarter-over-quarter increase. This figure surpassed both Goldman Sachs' estimate of US$55.6 billion and the consensus estimate of US$55.4 billion [1]. - Data Center revenue reached US$51.2 billion, exceeding Goldman Sachs' estimate of US$49.4 billion and the Street's estimate of US$49.7 billion [1]. - For 4QFY26, Nvidia guided revenue and gross margin above market expectations, with a midpoint revenue guidance of US$65 billion, exceeding Goldman Sachs' estimate of US$63.2 billion and consensus of US$62.4 billion [1]. - Nvidia anticipates reaching US$500 billion in sales for its Blackwell and Rubin platforms from the start of 2025 until the end of 2026, with the Rubin platform expected to ramp up in the second half of 2026 [1]. Memory Market Insights - Strong demand for Nvidia's GPUs is expected to positively impact the High Bandwidth Memory (HBM) market, with significant growth anticipated for both SK Hynix and Samsung Electronics in 2026 [4]. - The estimate for Hynix's HBM bit shipments has been raised by 18% to 19 billion Gb, reflecting a 47% year-over-year increase from a previous estimate of 16 billion Gb [4]. - Samsung Electronics is projected to see a 126% year-over-year growth in HBM bit shipments, reaching over 10 billion Gb in 2026 [4]. Role of Memory in AI Infrastructure - Memory is deemed crucial for building AI infrastructure, with suppliers expected to benefit from various memory products, including DDR, LPDDR, and GDDR, in addition to HBM [4]. Long-term Contracts and Pricing Trends - Due to tight supply conditions, there is a higher likelihood of customers entering long-term contracts with memory suppliers for both HBM and conventional memory to protect their margins [5]. - Pricing for memory products has been rising significantly over the past few months, driven by supply constraints, particularly for LPDDR DRAM used in multiple applications [4][5]. Price Targets and Risks - Samsung Electronics has a 12-month target price of W123,000 for common shares and W99,000 for preference shares, rated as Buy for both [6]. - SK Hynix has a 12-month target price of W700,000, also rated as Buy, with a 30% AI premium factored into the valuation [8]. - Key risks for both companies include a major deterioration in memory supply/demand, smartphone margin contractions, and potential market share losses in mobile OLED [7][9]. Conclusion - The conference call highlights a positive outlook for the South Korean memory industry, driven by strong demand from Nvidia and the growing importance of memory in AI applications. The anticipated growth in HBM shipments for both SK Hynix and Samsung Electronics reflects a robust market environment, although risks related to supply and demand dynamics remain pertinent.