- Porter's Daily Journal
- Posts
- A Profound Expression Of Computing Power
A Profound Expression Of Computing Power
Porter's Journal Issue #67, Volume #2
Porter Stansberry
June 11, 2025
Nvidia Is Changing The World In Ways That Are Very Hard To Believe
This is Porter’s Daily Journal, a free e-letter from Porter & Co. that provides unfiltered insights on markets, the economy, and life to help readers become better investors. It includes weekday editions and two weekend editions… and is free to all subscribers.
Nvidia grew revenue 69%… If you haven’t read The Parallel Processing Revolution, we urge you to do so… Industries and sovereign powers are building enormous data centers… It is Intel, Microsoft, and Cisco Systems wrapped up into one company… China and the U.S. trade deal is (reported) done… |
Table of Contents
I couldn’t believe it.
Two weeks ago, Nvidia (NVDA), already one of the largest businesses in the world, announced that it grew revenue by 69% year-over-year. It sold $44 billion worth of its state-of-the-art GPU computer chips at gross margins above 60%. That’s despite taking a $4.5 billion charge against earnings relating to sanctions against China. These incredible margins powered net income of $18.7 billion, leading to more than $14 billion in share repurchases – in the quarter.
About a year ago, we published The Parallel Processing Revolution. If you haven’t read it, I’d urge you to do so. Nvidia is changing the world in ways that are very hard to believe, unless you understand that its technology has unlocked a virtual Pandora’s box of computing power into the world with unprecedented continual improvements to performance. This combination of never-seen-before computing power and never-seen-before annual increases to performance has the impact of delivering decades worth of innovation, each year.
Nvidia’s latest chip, the Blackwell B200, is up to 4x faster than the previous Nvidia artificial-intelligence (“AI”) chip, the H100. But that doesn’t really explain what’s happening. It’s because these chips all function in parallel that allows dozens of these chips, linked together, to perform computing tasks at a scale and speed that was unimaginable even a decade ago.
Nvidia’s leading product has a catchy name: “Nvidia GB200 NVL72.” This is 36 Blackwell B200 chips linked together in a single rack. This creates 130 terabytes per second of throughput, enabling a total computer power of 1.44 exaflops per second.
What’s that mean? Well, supercomputers used to be measured in how many “floating point” operations they could process per second. In short, how many individual 0 / 1 choices they could process per second. A petaflop is a unit of computing speed that’s equal to 10 the 15th power, or one thousand million million.
Ten years ago, the most powerful computer in the world, the Tianhe-IA computer at the National Supercomputer Center, had a peak computer power at 2.566 petaflops.
Nvidia’s new GB200 NVL72 racks are roughly 1,000x more powerful.