17 Chapter IV: Data Analysis Trend over the period of research There is a need to showcase data which showcase the performance of Nvidia from the period before the commercialization of Large Language Model like Chatgpt as well as Generative AI which has showcased to many companies in the world, the possible mass adoption and demand from the market for this product. This is shown by products like Chatgpt which are built upon GPT-3 released in 2020 which after it’s launch was able to attract 5 million people in 5 days and the shortest to reach 100 million visits beating Tik Tok in January 2023. Today there feel a need to analyze the trend of growth of Nvidia’s balance sheet which contain it’s asset, liabilities and equity as well as it’s revenue and net income Year Net Income Revenue Total Asset Total Liability Shareholder’s Equity 2017 1666 6910 9841 4048 5762 2018 3047 9714 11241 3770 7471 2019 4141 11716 13292 3950 9342 2020 2796 10918 17315 5111 12204 2021 4322 16675 28791 11898 16893 2022 9752 26914 44817 17575 26612 2023 4368 26974 41182 19081 22101 2024 29760 60922 65728 22750 42978 Koleksi digital milik UPT Perpustakaan ITB : Hanya dipergunakan di area kampus ITB untuk keperluan pendidikan dan penelitian 18 These data showcase the period between FY17 and FY24 and it has showcased that the value of these 5 data points is trending upward. All 5 data have the highest score in the most recent year of 2024, and their lowest point in FY17 with the exception of Liability whose lowest point is in FY18. All data point encounter difficulty in FY23 with the exception of liability which shows the difficulty faced during that year which could be resulted by a number of events including the ban on export on advanced AI Chip to country like China, Russia, Iran imposed by the United states government (Hoskin, 2023), which is damaging to Nvidia as China makes up about 20% of their revenue. Revenue and net income have also decreased in FY20 which would most likely be caused by Covid 19 which caused a microchip shortage necessary to make Nvidia’s GPU, as TSMC Factory was operating at very low capacity, while the demand for microchip remained high. Market Conditions Nvidia growth has been driven by many market factors, and their fundamental ability within their fields. Some of these market factors are; Crypto boom and crash Crypto boom and crash a number of times, but the one significant toward this research would be the crypto boom and crash of 2017 and 2018, and the crypto boom and crash of 2021 and 2022. This is one of the important market factors which affected Nvidia, as Nvidia GPUs are one of the Koleksi digital milik UPT Perpustakaan ITB : Hanya dipergunakan di area kampus ITB untuk keperluan pendidikan dan penelitian 19 best in the market for crypto mining, therefore during a crypto boom, demand for Nvidia high- tech GPUs would usually increase, however during a crash, many of these GPUs would be sold for penny on the dollars which would damage Nvidia sales leading to higher inventory, and price cutting by Nvidia. These crypto booms and crashes happen from time to time. In the crypto boom of 2017, bitcoin prices rose exponentially until it reached its then all-time peak of 20000 dollars, and by September of 2018, they would lose 80% of their value. GPT-3.0 and Generative AI LLMs and Generative AI are some of the technologies which showcase the market viability of AI. GPT 3.0 is released in 2020. The result of the release of LLM like this, and other AI models like it, would be fully realized in 2021 whereby investment into AI spiked. In addition, the early showing of GPT 3.0 ability as a generative ai model in 2022 created more excitement for the technology, especially as Dall-E which is a generative AI model which create images based on consumer’s prompt in 2023 showcase their ability and the improvement it has made from Dall-E 1 which are very unrealistic and for the most part unable to accurately create what you want him to generate to now having improved leaps and bounds. These create further hype around AI, especially generative AI in 2023. The way Nvidia has manage to benefit from the rise of these industries is by capitalizing their existing capabilities in GPUs, as their GPUs have the best capabilities when it come to AI training, therefore should someone want to create an AI which rival Chatgpt, or simply create an advanced AI in short-amount of time, they need to create data center using Nvidia’s GPUs. Koleksi digital milik UPT Perpustakaan ITB : Hanya dipergunakan di area kampus ITB untuk keperluan pendidikan dan penelitian 20 These are the data of Nvidia’s revenue by reportable income which can be found in the annual report they gave at the end of each fiscal year, and the data contained gaming revenue, data center revenue, and other revenue which include automotive, Geforce now, professional visualization, and Nvidia’s revenue stream has changed a lot, in fiscal year 2017, data center is the only the third largest revenue stream of Nvidia behind professional visualization, and it became larger than all other revenue except gaming in fiscal year 2019, and its share of the NVidia’s revenue stream remain stagnant and slightly increasing in 2020, before increasing rapidly in fiscal year 2021 and would continue to grow until it is biggest revenue stream by fiscal year 2023 and dwarf all other revenue stream by fiscal year 2024. Geopolitical Tension The main geo-political tension which exists is the underlying tension between China and the United States. One of the main realm of contention would be the tech blockade which the united states has embark against China, whereby the united states would block many sales high-tech product to China (Hoskin, 2023), this has heavily impacted Nvidia whose around 18% of the revenue has generally come from the Chinese market from fiscal year 2017-2018 and as high as 20%-27% in the period between fiscal year 2019-2023 based on the calculation done from their annual report in the section mentioning revenue by geographic areas.