Nvidia, why is it worth 50 Xiaomi?

Expedition to see finance

2024-06-06 18:14Posted on the official account of Chongqing Zhengtan Finance

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In 2013, Huang stood up for Xiaomi, using broken Chinese to praise Xiaomi (1810. HK）。 At that time, Lei Jun was still a little shy.

The rice fans in the audience were driven by Huang Jenxun, an "e-person" who is good at speaking, and shouted loudly with him: Xiaomi mighty, Xiaomi mighty, Xiaomi mighty! If it is important, say it three times.

On Wednesday, Nvidia's (NVDA) market capitalization exceeded $3 trillion, about 50 times that of Xiaomi. Will Jensen Huang, a world-class marketer, still shout "Xiaomi mighty" at the gathering of rice noodles?

Huang Jenxun now has a sharper Chinese language than 11 years ago; Now Lei Jun has no shyness on his face.

Eleven years ago, Nvidia's market capitalization was more than $9 billion, and Xiaomi's valuation was $45 billion (Xiaomi was listed on the Hong Kong Stock Exchange in 2018). made a supporting package for Xiaomi, and "the best company to be GPU" also had to go to the platform for Party A.

This year, Xiaomi sold 18.7 million mobile phones, with sales of 31.6 billion yuan including tax. In the second year, Xiaomi broke through the 60 million mark. In 2023, Xiaomi's revenue will reach 270.970 billion yuan, and mobile phone shipments will be 145.6 million units.

However, the mobile phone industry, which is caught in the red ocean, is difficult to provide strong growth for Xiaomi. In 2023, Xiaomi's revenue will fall by 3.2%, and mobile phone shipments will fall by 3.3%.

Xiaomi's former supporting brother Nvidia presents a completely different landscape. Huang once recalled, "Several times on the verge of bankruptcy, several times when the stock price fell below $1, the ability to endure pain is the key wealth in life." "Being able to bottom out when you're on the verge of being in a desperate situation often makes a company more resilient.

In 2013, Nvidia still faced many challenges, and Huang, dressed in leather, had to find more customers around the world. At this time, in the GPU market, AMD and NVIDIA have both launched new products and are engaged in a big showdown. In April of that year, O'Keefe bought Nvidia for $3.1, not expecting it to be the best option in his investment history. It was also in this year that Xiaomi's flagship at the time, the Mi 3 mobile version, was equipped with an NVIDIA Tegra 4 processor.

In the following time, Nvidia ushered in a splash of wealth and caught up with blockchain "mining" and AI large model computing. Today, NVIDIA has become a leader in AI computing. Recently, Huang, still dressed in leather, asserted that "starting with accelerated computing, to artificial intelligence, to generative AI, is now an industrial revolution." He said that NVIDIA's chip solutions for artificial intelligence factories will unleash "$100 trillion" business opportunities in many fields.

Where can the capital market withstand Huang Jenxun's "teasing", institutions have stepped in to help Nvidia to the top of $3 trillion. It is foreseeable that Microsoft's crown as the king of global market capitalization will soon be taken off by Nvidia.

In just 11 years, why is the gap between Xiaomi and Nvidia so big?

From the perspective of revenue, after Xiaomi's sales exceeded 60 million units, sales once hesitated, and revenue slowed down. It was only in 2017 that Xiaomi regained its growth momentum. Unfortunately, in 2022 and 2023, Xiaomi's revenue will decline again. Capital does not believe in tears, and Xiaomi's market value is difficult to return to its peak.

Nvidia has been on the rise in revenue since 2013. On May 23, Nvidia's stock price continued to rise after Nvidia released its latest earnings report that exceeded expectations. Nvidia's 2025 first-quarter financial report shows that the company's revenue during the period was $26.044 billion, up 262% year-on-year, exceeding market expectations.

Today, NVIDIA's GPUs have become a sought-after commodity, and have even created a huge underground black market, with price increases several times becoming the norm. Mobile phones have gradually become a big commodity, how many people are willing to increase the price?

In fact, in those years, Nvidia also looked at the mobile phone chip market, but after finally paying a certain price, Nvidia chose to gradually fade out of the mobile SoC market. Betting on GPUs, betting on CUDA, Huang said, "We've created a new market — robotics. It has a neural network processor and a secure architecture to run AI algorithms. ”

Xiaomi also did a big thing in 2013. Start to build an ecological chain and lay out IOT. Jia Yueting, who proposed the concept of ecological chain earlier than Lei Jun, now relies on live broadcast to save himself. In terms of effect, Xiaomi cannot be accused of doing anything wrong. By 2020, there will be more than 200 enterprises in the Xiaomi ecological chain, with sales exceeding 30 billion. By the third quarter of 2023, there will be 10 A-share listed companies in the Xiaomi ecological chain.

Moreover, when investing in the Xiaomi ecological chain, Lei Jun finally discovered a super giant mine. This mine is not as illusory as Lei Jun said before to seize the Internet of Things. At that time, entrepreneurs of all sizes liked to talk about seizing the Internet of Things. In fact, many entrepreneurs have long been blown away by the wind. The mine discovered by Lei Jun is an electric car. In 2021, Lei Jun, who staked a lifetime of honor and achievements, announced the construction of a car. At this time, Xiaomi has completed 52 investments in the automotive field, with a cumulative investment of 26.227 billion yuan.

This year, Xiaomi's car was finally built, but many bigwigs in the automotive industry panicked. For so many years, car company bosses who live a relatively nourishing life and like to hold it will get lumbar spondylosis if they don't sit in first class when they go out. Now, one by one, they have begun to follow Lei Jun's example to open the door of the live broadcast, and even travel thousands of miles to engage in self-driving live broadcasts.

In fact, Lei Jun can't learn from Jobs, and he can't learn from Huang Jenxun; Car company bigwigs can't learn from Lei Jun. Bigwigs in car companies and even other industries should still spend more attention on promoting product research and development and doing a good job in service, even if they want to play live shows, they have to come up with their own unique skills. Lei Jun's sentence may be used as a reference: "I think the most important thing for a person is not to take himself too seriously, and not to hold it up." "Don't be upright, don't follow suit, but take out your own advantages.

It's just that the gap between Lei Jun and Nvidia is still a chasm that is difficult to cross.

"Learning to give up is the core key to success," Huang said. Perhaps, Lei Jun is also often aware of this sentence. If they want to really gain a foothold in the automotive industry, both Xiaomi and Lei Jun need more time to truly create disruptive automotive products, which takes time and determination.

Easy money is easy to make, but it is not long-lasting, and what is needed for an everlasting foundation is long-distance running. "You often don't know what kind of situation you're in, but keep running no matter what." (Jensen Huang)

Author丨Zheng Tanjun

来源丨征探财经（ID:teccj6)

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