Company Introduction
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
$185.04
52.67
3.51
$4,496.47B
Company Overview
Industry Sector: Technology
Industry Trends
Industry Growth: The global GPU market is expected to grow at a CAGR of 33.6% from 2022 to 2027
Key Demand Drivers: Artificial intelligence, gaming, and cloud computing
Major Competitors: AMD, Intel, and Qualcomm
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% |
Rule of thumb (Lynch):
PEG ≈ 1 → Fairly valued
PEG < 1 → Undervalued (growth cheap relative to earnings)
PEG > 1.5 → Overvalued
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% |
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% |