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What Is Nvidia's Omniverse and Why Should You Pay Close Attention To It?

By Neil Rozenbaum – Aug 19, 2021 at 11:00AM

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Nvidia keeps adding pieces to a potentially trillion-dollar puzzle, and Omniverse is the latest.

In this video I will be covering Nvidia's (NVDA -3.75%) recent Q2 earnings report as well as expanding on its new flashy offering, called Omniverse. (Not to be confused with the metaverse.) 

Earnings recap

The company reported record revenues across the board with overall business revenue of $6.51 billion, up 68% year over year, the gaming segment up 85% year over year to $3.06 billion, the data center segment up 35% YOY to $2.37 billion, and (most surprising to me) the "professional visualization" segment up 85% YOY to $519 million, an increase of 40% from the previous quarter. During the recent earnings call, CEO Jensen Huang said he expects Nvidia to face supply constraints for most of 2022. For Q3 the company expects revenue to be $6.80 billion, plus or minus 2%. 

Omniverse

Omniverse is part of the professional visualization segment and is the reason that segment's revenue has gone up so much. In the video below, I explain exactly what it is and what it can be used for, but in short, it's a simulator, a physically accurate one. It uses Nvidia's RTX technology (ray tracing) and "the ability to compute or simulate the physics of the artificial intelligence behavior of engines and objects inside the world." Jensen's presentation during the GTC keynote wasn't real, it was all virtually made, every aspect of it.

You might see Omniverse as a virtual playground where you could train robots to do a specific job before "releasing" them into the real world. Factories of the future are being designed completely in Omniverse, BMW being one customer.  

For the full insights do watch the video below.

*Stock prices used were the closing prices of August 18, 2021. The video was published on August 19, 2021.

Neil Rozenbaum has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Nvidia. The Motley Fool has a disclosure policyNeil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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