NVIDIA Corp Analysis

Company Introduction

Founding Year: 1993

Headquarters Location: Santa Clara, California

Core Business Summary: NVIDIA Corporation is a technology company that designs and manufactures graphics processing units (GPUs) and high-performance computing hardware.

Overview

NVIDIA Corp (NVDA)

Current Price
$185.04
PE Ratio
52.67
EPS
3.51
Market Cap
$4,496.47B

Company Overview

Industry Sector: Technology

Financials

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenue $5.01B $6.91B $9.71B $11.72B $10.92B $16.68B $26.91B $26.97B $60.92B $130.50B
YoY % +37.9% +40.5% +20.7% -6.8% +52.7% +61.3% +0.2% +125.9% +114.2%
EBITDA $987.00M $2.15B $3.46B $4.22B $3.40B $5.69B $11.35B $5.99B $35.58B $86.14B
YoY % -99.8% +60.9% +22.0% -19.4% +67.4% +99.5% -47.2% +494.0% +142.1%
FCF $1.09B $1.50B $2.91B $3.14B $4.27B $4.69B $8.13B $3.81B $27.02B $60.85B
YoY % +37.6% +94.0% +7.9% +36.0% +9.8% +73.3% -53.1% +609.2% +125.2%
EPS 0.03 0.06 0.12 0.17 0.15 0.25 0.44 0.33 1.30 2.99
YoY % +100.0% +100.0% +41.7% -11.8% +66.7% +76.0% -25.0% +293.9% +130.0%

Growth Drivers

Historical Growth Drivers: Product innovation (e.g., Ampere and Turing architectures), new market entry (e.g., datacenter and automotive), and strategic partnerships (e.g., with Google and Amazon)

Future Growth Drivers: Increasing adoption of AI and cloud computing, expansion into new markets like healthcare and finance, and advancements in technologies like ray tracing and virtual reality

Examples: NVIDIA's acquisition of Arm Ltd. for $40 billion, expected to enhance its position in the AI and IoT markets

Market Position

Competitive Position: Leader in the discrete GPU market

Estimated Market Share: 80-90% in the discrete GPU market

Technological Moat: Advanced manufacturing processes, significant R&D investments, and strong brand recognition

Strengths

  • Strong financials
  • Innovative products
  • Diversified revenue streams
  • Strong partnerships

Weaknesses

  • Dependence on a few large customers
  • Intense competition
  • Regulatory risks
  • Cyclical exposure

Valuations

Valuations for NVDA

Formula Bull Base Bear Margin of Safety
Ben Graham $205.34 $135.14 $100.04 -36.9%
Peter Lynch $199.58 7.3%
PEG Ratio: 0.90

Rule of thumb (Lynch):
PEG ≈ 1 → Fairly valued
PEG < 1 → Undervalued (growth cheap relative to earnings)
PEG > 1.5 → Overvalued

Premium features enabled.

Outlook

Opportunities: Growing demand for AI, cloud computing, and gaming, expansion into new markets, and advancements in technologies like ray tracing and virtual reality

Risks: Intense competition, regulatory risks, and cyclical exposure

Horizon: 3-5 years

Analysis: NVIDIA is well-positioned to benefit from the growing demand for AI, cloud computing, and gaming. However, it faces intense competition and regulatory risks. With its strong financials, innovative products, and diversified revenue streams, NVIDIA is expected to maintain its leadership position in the discrete GPU market and continue to grow in the coming years.

Stock Price Performance

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Price 0.90 2.71 5.53 4.56 6.08 13.81 26.71 27.97 90.36 110.15
YoY % +201.1% +104.1% -17.5% +33.3% +127.1% +93.4% +4.7% +223.1% +21.9%
* The price is shown as of 01 April each year.

Stock 3 Year Rolling CAGR

Metric 2018 2019 2020 2021 2022 2023 2024 2025 Average
Revenue 24.70% 19.24% 3.97% 12.49% 35.09% 17.39% 31.30% 69.13% 26.66%
EBITDA 51.85% 25.17% -0.51% 10.52% 49.41% 1.70% 46.35% 143.22% 40.96%
FCF 38.75% 28.08% 13.67% 14.31% 23.93% -6.74% 49.22% 151.88% 39.14%
EPS 58.74% 41.50% 7.72% 13.72% 43.15% 9.70% 43.49% 108.47% 40.81%
Price 83.16% 18.94% 3.21% 44.68% 63.78% 26.52% 50.12% 57.92% 43.54%

Comments

No comments yet. Why don’t you start the discussion?

Leave a Reply

Your email address will not be published. Required fields are marked *