Nvidia Stock: Auto Business May Drive Continued Performance (NASDAQ:NVDA) (2022)

Nvidia Stock: Auto Business May Drive Continued Performance (NASDAQ:NVDA) (1)

NVIDIA (NASDAQ:NVDA) has been on an incredible run of late, fueled by tremendous growth across its business segments. Revenue has more than doubled over the past 3 years, resulting in explosive economies of scale. Gross margins are up nearly 500 basis points while operating margins are up over 900 basis points. Free cash flow has increased by 2.3 times over that span.

While the business itself is clearly very strong and growth momentum is impressive, the expected slowdown in growth and the premium valuation multiples attached to the stock - even after the recent pullback in the share price - imply that it is not a Buy at the moment. On the other hand, the explosive growth potential in the automotive business could be an x-factor that drives continued outperformance for the company. In this article, we will overview the business as a whole and then discuss the qualitative aspects of the automotive business that indicate massive growth could materialize there.

NVDA Stock Has A Wide Moat Business Model

Even more importantly, the company possesses a wide moat due to its intellectual property. Thanks to its leading position in the GPU space, the company plays an integral and increasingly prominent role in the global economy.

As the leader in the space, NVDA is able to attract among the very best talent in the industry that it retains through generous compensation packages and a large research and development budget. In our view, this positions the company to retain its technical edge in the industry and continue to innovate to compound its intellectual property driven competitive advantages. This makes the business model fairly low risk and gives it tremendous long-term potential. We also see this competitive advantage on display in its superior profitability metrics compared to its rival Intel (INTC):

Nvidia Stock: Auto Business May Drive Continued Performance (NASDAQ:NVDA) (3)

NVDA Stock Has A Massive Growth Runway

Thanks to its world-class brain trust, strong base in technology and basic research, and strong macro tailwinds for its industry, NVDA has nearly limitless opportunities to grow. The company has already begun expanding into new markets, including data centers and autonomous driving:

(Video) Nvidia: The Most Powerful Company On Earth? (NVDA Stock)

These initiatives have already gained substantial momentum as its data center business saw 53% year-over-year growth in the first nine months of 2021 and its automotive business saw 13% year-over-year growth in the first nine months of 2021.

Meanwhile, its core gaming business soared by 72% year-over-year and its professional visualization business was its fastest-growing business, up 97% year-over-year, though it is still dwarfed in size by its gaming and data center businesses.

Long term, the data center and the automotive businesses should see significant sustained growth as both markets are massive and set to grow for many years to come. With artificial intelligence technologies exploding as well as the metaverse just beginning to take off, NVDA has enormous potential to increase the applications of and markets for its technologies.

One way in which NVDA has been aggressively pursuing growth is its attempt to acquire ARM from SoftBank (OTCPK:SFTBY) for $40 billion. However, regulators spanning from the U.S. to Great Britain to China are expressing concern over the deal from both anti-competitive as well as national security perspectives. As a result, this deal may very well fall through and would potentially weaken the pro forma competitive standing and growth outlook for the company.

Nevertheless, analysts still see a robust growth outlook for the company through at least 2025. Analysts expect revenue to soar from the expected $26.7 billion through 1/31/22 to $57.9 billion in the twelve months concluding on 1/31/26. That translates to robust 21.4% annualized growth off of an already substantial revenue base.

EBITDA is expected to grow at a similarly impressive CAGR of 20.5% over that span, and normalized earnings per share are expected to compound at a 24.9% annualized rate. The normalized earnings per share number is the most important because not only does it indicate the true value creation for shareholders but it also takes into account the dilutionary impacts of the company's aggressive stock-based compensation program that it uses to attract and retain the best and brightest minds in the industry.

NVDA Stock's Valuation Still Looks A Bit Rich

While the stock price has had a pretty substantial pullback over the past several months alongside the broader tech sector, the valuation still appears rather rich:

Nvidia Stock: Auto Business May Drive Continued Performance (NASDAQ:NVDA) (5)

For example, both its price to normalized earnings and enterprise value to EBITDA ratios appear elevated relative to its recent historical averages:

(Video) Nvidia Stock Analysis & Valuation | NVDA Deep Dive 2022

What makes this premium appear even larger is the fact that interest rates are poised to rise even as NVDA's growth rates are set to decline over the next four years to a level that is less than half of what the company has achieved over the past few years.

While a low-to-mid 20s growth rate is impressive, especially given how large the company's revenue base has become, it is increasingly difficult to justify accepting a ~2% earnings yield with a 20%-25% growth rate when interest rates are poised to surge. Furthermore, there remains substantial supply chain and geopolitical risk that could hurt the company, as the winding course of the ARM acquisition attempt illustrates.

Does this make NVDA a sell here? Likely not, and we certainly would not want to short it ourselves. The company has enormous competitive advantages that are likely to grow over time and the growth should be strong, though perhaps not spectacular moving forward.

Further discouraging us from taking a bearish perspective on the stock is the simple fact that it has a fortress balance sheet and strong financials. As of its last reporting, NVDA had over $19 billion in cash and short-term investments as well as another roughly $6.5 billion in receivables, inventory, and prepaid expenses on its balance sheet, against just $16.8 billion in total liabilities (of which only $3.6 billion is current and $10.9 billion is long-term debt).

Given its aforementioned returns on invested capital and equity, its 25% free cash flow margins, and expected free cash flow annualized growth rate of nearly 30% over the next four years to an expected $25.5 billion in annual free cash flow by 1/31/26, NVDA is truly in an extremely strong financial position.

Automotive Business Is The X-Factor

While NVDA does not look that cheap from a big picture perspective, the automotive business is an area where it could outperform analyst expectations and drive further alpha for shareholders.

The automotive business is currently NVDA's smallest and slowest growing market platform, comprising just $441 million of its 2022 revenue through the first nine months of 2021, compared to $9 billion from gaming, $7.4 billion from data centers, and $1.5 billion from professional visualization. Meanwhile, its year-over-year growth rate was just 13%, compared to 72% growth in gaming, 53% growth in data centers, and 97% in professional visualization. However, these surface-level metrics understate the segment's true potential. If NVDA can successfully unlock this, it could substantially outperform analyst expectations for the business as a whole.

The most obvious aspect of NVDA's automotive business is the sale of its GPUs and SoCs that it sells to automakers and automotive suppliers for the immediate manufacture of vehicles. While this business is a nice cash cow for the company, it actually does much more than this, and this is where the long-term power of this business lies for NVDA.

(Video) Nvidia Stock Analysis: Missed Guidance But Stock Soared!| NVDA Stock

For example, NVDA has literally hitched its cart to TSLA's autonomous vehicle horse(power). NVDA technology plays a vital hardware and software system development role at the TSLA data center where they train the autonomous vehicle artificial intelligence, putting it at the cutting edge of autonomous vehicle technology development. They even used to provide hardware for the computers that were installed in all Tesla vehicles, but have since been displaced by TSLA producing its own hardware.

NVDA has also formed close partnerships with Mercedes-Benz (OTCPK:DDAIF), where it is using NVDA supercomputers to play a key role in helping the automaker create a full lineup of vehicles based on a software-designed-architecture. As the designer and facilitator of this software stack and system, NVDA will then be ideally positioned to profit over the long term from this partnership by providing software updates and additional applications to Mercedes-Benz and its consumers for many years to come. This means that NVDA could very well have a substantial automotive applications services business in the not-too-distant future that could turn into a substantial cash cow and growth engine for the company.

Furthermore, NVDA will be playing a significant role in developing the "brain" (i.e., the A.I. supercomputer) for some - if not many - of the autonomous and electric vehicles of the future, which is really the core of the overall product.

As Sam Abuelsamid from Navigant Research recently stated:

Virtually every company working on AVs is utilizing NVIDIA in its compute stack.

Some of these technologies are already here, including its recent launch of its Drive Concierge (that provides a number of autonomous services including parking a car by itself) and an Omniverse Replicator that enhances training autonomous vehicles by putting some of the tasks in a virtual world.

As a result, it may be seriously underappreciated by the stock market today for its automotive industry prowess. If it can extend its automotive-oriented technology partnerships with firms beyond Mercedes-Benz, its growth could explode and make it one of NVDA's largest - if not its largest - market platforms.

In fact, according to Allied Market Research, the global autonomous vehicle market is expected to reach $556.7 billion by 2026. NVDA has not even generated half a billion dollars in revenue from its automotive platform over the past nine months, though it does have about $8 billion in revenue booked for the segment over the next several years. If the company can simply gobble up 4% of the global autonomous vehicle market by 2026, it could very well become its largest business segment and enable it to crush analyst expectations for the company over the next half-decade. Given its strong technical position, this is certainly possible.

Investor Takeaway

Thanks to its wide moat business model, strong profitability, massive and quickly growing cash pile, and substantial growth outlook, NVDA definitely belongs in the same conversation as other higher growth mega-cap tech stocks like Alphabet (GOOG), Microsoft (MSFT), and Tesla (TSLA). In fact, given the explosive growth potential in its automotive business, it could also be increasingly considered as an emerging automotive technology company.

(Video) NVIDIA Stock Analysis | NVDA Stock | $NVDA Stock Analysis | Best Stock to Buy Now?

That said, it is not a risk-free investment. Given the economic and even national security mission-critical roles that its products and technologies increasingly play on the global stage, NVDA will have to constantly be dealing - and likely battling - with government regulatory agencies as it seeks to grow further. In the immediate term, this risk is manifested in its increasingly challenged effort to acquire ARM. Furthermore, it will likely face competition in fields where it seeks to expand while also holding off challengers like INTC and Advanced Micro Devices (AMD) which are investing aggressively to catch up to and even surpass NVDA wherever possible.

Meanwhile, on the automotive side, TSLA's ability and willingness to produce its own hardware and much of its own software shows that NVDA could face some headwinds in the future when trying to grow its automotive business if other automakers adopt a similar course. Additionally, there will be competition from the likes of Waymo and even Wejo (WEJO) could pose some competitive challenges as it has partnered with data analytics powerhouse Palantir (PLTR) to enhance the development of its autonomous vehicle technology.

On top of that, the stock looks a bit pricey here - despite its growth momentum and obvious strengths - especially in the context of rising interest rates and slowing growth rates. While the pullback in the shares was certainly warranted as the valuation had gotten ahead of itself due to market jubilation, we think a further 10-20% pullback is warranted before the shares are worth buying.

Between general geopolitical and macroeconomic risks as well as a potential downward catalyst from the ARM acquisition formally being nixed, the risk-reward seems to favor remaining on the sidelines here. As a result, we are neutral on shares at the moment, but would certainly be happy to buy on a further pullback.

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Nvidia Stock: Auto Business May Drive Continued Performance (NASDAQ:NVDA) (8)

FAQs

What is the target price for NVDA stock? ›

Stock Price Target NVDA
High$325.00
Median$205.00
Low$110.00
Average$201.75
Current Price$122.20

What are analysts saying about NVDA? ›

NVIDIA Corp (NASDAQ:NVDA)

The 39 analysts offering 12-month price forecasts for NVIDIA Corp have a median target of 205.00, with a high estimate of 325.00 and a low estimate of 110.00. The median estimate represents a +69.81% increase from the last price of 120.72.

What is a fair price for NVDA? ›

As of today (2022-10-01), NVIDIA's share price is $121.39. NVIDIA's Peter Lynch fair value is $76.25. Therefore, NVIDIA's Price to Peter Lynch Fair Value Ratio for today is 1.59.

Who owns the most shares of NVDA? ›

Institutional ownership of NVDA stands at $1.6 billion shares or 65.19% of shares outstanding. This is in-line with the Semiconductors industry average.
...
Top 10 Owners of NVIDIA Corp.
StockholderT. Rowe Price Associates, Inc. (I...
Stake2.28%
Shares owned56,929,819
Total value ($)8,592,986,880
9 more columns

What Will Nvidia be worth in 5 years? ›

The NVIDIA stock 5-year forecast from AI Pickup was bearish, with the website's technical analysis, predicting that the share price could average $49.71 in 2027, from $122.19 in 2022, $105.60 in 2023 and $78.96 in 2025. However, it then expected the stock to rebound to average $514.97 in 2030.

What is Nvidia known for? ›

Nvidia Corporation is a technology company known for designing and manufacturing graphics processing units (GPUs). The company was founded in 1993 by Jen-Hsun "Jensen" Huang, Curtis Priem and Chris Malachowsky and is headquartered in Santa Clara, Calif.

Is NVIDIA a good stock to buy? ›

Summary. NVIDIA has been one of the best stocks to own during the past 2 decades, but it has a long history of very deep earnings and price cyclicality.

Why are NVIDIA shares falling? ›

Nvidia stock has been under pressure this year falling 55% since Jan 2022 amid high inflation, lower demand, Covid lockdowns and supply chain constraints.

What is the best stock to buy in 2022? ›

Top 10 Stocks To Consider in 2022
StockPriceMarket Cap
Devon Energy Corp. (DVN)$65.12$43.128 billion
Marathon Oil Corp. (MRO)$25.76$17.455 billion
Qualcomm Inc. (QCOM)$124.77$143.104 billion
Berkshire Hathaway Inc. (BRK-A)$419,869$608.826 billion
6 more rows
22 Sept 2022

Who are Nvidia's competitors? ›

Top NVIDIA Alternatives
  • Cisco.
  • Juniper.
  • Arista Networks.
  • Dell Technologies.
  • Extreme Networks.
  • Huawei.
  • VMware.
  • NETGEAR.

What sector is Nvidia stock in? ›

NVIDIA's sector is Information Technology.

What is Peter Lynch Fair Value? ›

What is the Peter Lynch's Fair Value Formula? IIf a company's growth rate (including dividend yield) is equal to its Price-to-Earning ratio, Lynch's fair value ratio will be equal to 1. According to Peter Lynch, Ratio value = 1 means that the stock is trading at a fair valuation.

How many shares of NVDA exist? ›

Share Statistics
Avg Vol (3 month) 351.79M
Avg Vol (10 day) 352.84M
Shares Outstanding 52.49B
Implied Shares Outstanding 6N/A
Float 82.4B
7 more rows

What funds invest in NVIDIA? ›

NVIDIA

NVIDIA
Nvidia Corporation (/ɛnˈvɪdiə/ en-VID-ee-ə) is an American multinational technology company incorporated in Delaware and based in Santa Clara, California.
https://en.wikipedia.org › wiki › Nvidia
is funded by 6 investors. ARK Investment Management and SoftBank Vision Fund are the most recent investors. NVIDIA has made 30 investments. Their most recent investment was on Sep 20, 2022 , when PassiveLogic raised $15M .

Does Vanguard own NVIDIA? ›

NVIDIA is not owned by hedge funds. The company's largest shareholder is The Vanguard Group, Inc., with ownership of 7.8%. For context, the second largest shareholder holds about 7.0% of the shares outstanding, followed by an ownership of 6.8% by the third-largest shareholder.

Where will NVDA stock be in 2025? ›

Nvidia

Nvidia
Nvidia Corporation (/ɛnˈvɪdiə/ en-VID-ee-ə) is an American multinational technology company incorporated in Delaware and based in Santa Clara, California.
https://en.wikipedia.org › wiki › Nvidia
stock price stood at $121.39

According to the latest long-term forecast, Nvidia price will hit $150 by the middle of 2022 and then $200 by the middle of 2024. Nvidia will rise to $250 within the year of 2025, $300 in 2026, $400 in 2028 and $500 in 2032.

How much will NVIDIA stock be worth in 2030? ›

Nvidia Stock Forecast
YearLower RangeHigher Range
2027$542.50$620.75
2028$678.00$776.25
2029$840.50$962.50
2030$1,042$1,195
6 more rows

Where will Google stock be in 5 years? ›

Google Stock Forecast 2024-2028

These five years would bring an increase: Google price would move from $340 to $602, which is up 77%. Google will start 2024 at $340, then soar to $347 within the first six months of the year and finish 2024 at $356. That means +244% from today.

Does Apple use Nvidia chips? ›

Apple uses Nvidia chips in some of its products, including the MacBook Pro. Nvidia chips are known for their power efficiency and performance, making them a good choice for Apple's laptops.

Who makes chips for Nvidia? ›

IBM landed a major foundry

foundry
In the microelectronics industry, a semiconductor fabrication plant (commonly called a fab; sometimes foundry) is a factory where devices such as integrated circuits are manufactured.
https://en.wikipedia.org › Semiconductor_fabrication_plant
deal expected to be worth over $100 million Wednesday, agreeing to manufacture the next generation of Nvidia's GeForce graphics processors at its fab in East Fishkill, N.Y.

Does Nvidia make chips for electric cars? ›

In China, the Nvidia

Nvidia
Nvidia Corporation (/ɛnˈvɪdiə/ en-VID-ee-ə) is an American multinational technology company incorporated in Delaware and based in Santa Clara, California.
https://en.wikipedia.org › wiki › Nvidia
Drive Orin chip has become a core part of electric automakers' assisted driving tech. These semi-autonomous driving systems are an important selling point for the companies in what has become a fiercely competitive market in China. Some automakers are also using Nvidia's Xavier chip.

Is NVIDIA stock a buy sell or hold? ›

The average rating score is A2 and is based on 72 buy ratings, 26 hold ratings, and 0 sell ratings. What was the 52-week low for NVIDIA

NVIDIA
Nvidia Corporation (/ɛnˈvɪdiə/ en-VID-ee-ə) is an American multinational technology company incorporated in Delaware and based in Santa Clara, California.
https://en.wikipedia.org › wiki › Nvidia
stock? The low in the last 52 weeks of NVIDIA stock was 119.48. According to the current price, NVIDIA is 101.60% away from the 52-week low.

Is NVIDIA better than AMD? ›

Winner: Nvidia While AMD and Nvidia have superficial parity on most features, Nvidia's implementations are generally superior — and cost more. G-Sync, Reflex, DLSS, and NVENC all end up being at least slightly better than AMD's alternatives.

Who is the owner of NVIDIA? ›

Jensen Huang founded NVIDIA

NVIDIA
Nvidia Corporation (/ɛnˈvɪdiə/ en-VID-ee-ə) is an American multinational technology company incorporated in Delaware and based in Santa Clara, California.
https://en.wikipedia.org › wiki › Nvidia
in 1993 and has served since its inception as president, chief executive officer and a member of the board of directors. Starting out in PC graphics, NVIDIA helped build the gaming market into the largest entertainment industry in the world today.

What was Warren Buffett's first stock investment? ›

Buffett first invested in stocks on March 11, 1942. On that day, he purchased three shares of Cities Services preferred stock. Their cost was $114.75 and required all of his savings.

What stocks Will Boom 2022? ›

Best Stocks to Invest in 2022
  • Reliance Industries.
  • Tata Consultancy Services.
  • HDFC Bank.
  • Infosys.
19 Sept 2022

What are the top 10 stocks to buy right now? ›

Top 10 Stocks To Buy Right Now
  • Ford Motor Company (NYSE: F)
  • Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL)
  • QUALCOMM Incorporated (NASDAQ: QCOM)
  • Salesforce, Inc. (NYSE: CRM)
  • Palo Alto Networks, Inc. (NASDAQ: PANW)
  • The Walt Disney Company (NYSE: DIS)
  • GXO Logistics, Inc. (NYSE: GXO)
  • The Boeing Company (NYSE: BA)

What are the top 10 stocks to buy in 2022? ›

Stocks With Growth Potential for 2022
  • Lithia Motors Inc. (LAD) ...
  • Travel + Leisure Co. (TNL) ...
  • Mueller Industries Inc. (MLI) ...
  • First BanCorp (FBP) ...
  • Herc Holdings Inc. ...
  • Devon Energy Corp. ...
  • Marathon Oil Corp. ...
  • Qualcomm Inc.
22 Sept 2022

Does Google use NVIDIA chips? ›

Google Cloud offerings with NVIDIA

NVIDIA
Nvidia Corporation (/ɛnˈvɪdiə/ en-VID-ee-ə) is an American multinational technology company incorporated in Delaware and based in Santa Clara, California.
https://en.wikipedia.org › wiki › Nvidia
technologies

Utilize NVIDIA GPUs with Dataproc to accelerate production SPARK and DASK workloads and decrease training time for machine learning models.

Where does NVDA make most of its money? ›

(NVDA) popularized the graphics processing unit (GPU) and gets the vast majority of its revenue from these specialized chips. It's rapidly expanding into fields such as artificial intelligence (AI).

Who is bigger NVIDIA or Intel? ›

Nvidia

Nvidia
Nvidia Corporation (/ɛnˈvɪdiə/ en-VID-ee-ə) is an American multinational technology company incorporated in Delaware and based in Santa Clara, California.
https://en.wikipedia.org › wiki › Nvidia
surpassed Intel as the largest semiconductor company by market cap.

Is NVDA overvalued? ›

Is Nvidia Overvalued and Is it a Sell? Despite decent growth prospects ahead, Nvidia appears to be substantially overvalued at its current price. The post-pandemic slowdown in gaming chip sales is likely a permanent factor that will require the market to downgrade its expectations for the company.

Is Nvidia a Fortune 500 company? ›

Nvidia | 2022 Fortune 500 | Fortune.

Is Nvidia a USA company? ›

Nvidia Corporation (/ɛnˈvɪdiə/ en-VID-ee-ə) is an American multinational technology company incorporated in Delaware and based in Santa Clara, California.

What is Lynch's rule of 20? ›

Rule 20: If you study 10 companies, you will find 1 for which the story is better than expected. If you study 50, you'll find 5. There are always pleasant surprises to be found in the stock market — companies whose achievements are being overlooked on Wall Street.

Is Peter Lynch a good investor? ›

Peter Lynch is one of the greatest investors of all time; he ran the Magellan Fund at Fidelity, generating more than 29% annual returns during his 13 years in charge, retiring at 46. He sat down with Fidelity in a 2021 interview to offer wisdom that every investor could benefit from.

What is Peter Lynch strategy? ›

Peter Lynch's approach is strictly bottom-up, with selection from among companies with which the investor is familiar, and then through fundamental analysis that emphasizes a thorough understanding of the company, its prospects, its competitive environment, and whether the stock can be purchased at a reasonable price.

Is Nvidia a good stock to buy? ›

Summary. NVIDIA has been one of the best stocks to own during the past 2 decades, but it has a long history of very deep earnings and price cyclicality.

Is NVDA overvalued? ›

Is Nvidia Overvalued and Is it a Sell? Despite decent growth prospects ahead, Nvidia appears to be substantially overvalued at its current price. The post-pandemic slowdown in gaming chip sales is likely a permanent factor that will require the market to downgrade its expectations for the company.

Why Nvidia stock keeps dropping? ›

Nvidia

Nvidia
Nvidia Corporation (/ɛnˈvɪdiə/ en-VID-ee-ə) is an American multinational technology company incorporated in Delaware and based in Santa Clara, California.
https://en.wikipedia.org › wiki › Nvidia
stock was falling after the chip maker provided a softer-than-expected outlook for its July quarter. The company cited the impact of both reduced business in Russia and Covid-related manufacturing shutdowns in China. In March, Nvidia had announced the halt of all product sales in Russia.

Why is Nvidia dropping? ›

Nvidia stock has been under pressure this year falling 55% since Jan 2022 amid high inflation, lower demand, Covid lockdowns and supply chain constraints.

Is NVIDIA stock a buy sell or hold? ›

The average rating score is A2 and is based on 72 buy ratings, 26 hold ratings, and 0 sell ratings. What was the 52-week low for NVIDIA

NVIDIA
Nvidia Corporation (/ɛnˈvɪdiə/ en-VID-ee-ə) is an American multinational technology company incorporated in Delaware and based in Santa Clara, California.
https://en.wikipedia.org › wiki › Nvidia
stock? The low in the last 52 weeks of NVIDIA stock was 119.48. According to the current price, NVIDIA is 101.60% away from the 52-week low.

Is NVIDIA better than AMD? ›

Winner: Nvidia While AMD and Nvidia have superficial parity on most features, Nvidia's implementations are generally superior — and cost more. G-Sync, Reflex, DLSS, and NVENC all end up being at least slightly better than AMD's alternatives.

Who is the owner of NVIDIA? ›

Jensen Huang founded NVIDIA

NVIDIA
Nvidia Corporation (/ɛnˈvɪdiə/ en-VID-ee-ə) is an American multinational technology company incorporated in Delaware and based in Santa Clara, California.
https://en.wikipedia.org › wiki › Nvidia
in 1993 and has served since its inception as president, chief executive officer and a member of the board of directors. Starting out in PC graphics, NVIDIA helped build the gaming market into the largest entertainment industry in the world today.

Is Nvidia stock overvalued Reddit? ›

Is Nvidia

Nvidia
Nvidia Corporation (/ɛnˈvɪdiə/ en-VID-ee-ə) is an American multinational technology company incorporated in Delaware and based in Santa Clara, California.
https://en.wikipedia.org › wiki › Nvidia
really 340 to 1500% more valuable than Intel or AMD? Nvidia is by far the most overvalued stock of all major chipmakers.

Is Nvidia an American company? ›

Nvidia Corporation (/ɛnˈvɪdiə/ en-VID-ee-ə) is an American multinational technology company incorporated in Delaware and based in Santa Clara, California.

Is Apple stock a buy right now? ›

Apple has received a consensus rating of Buy. The company's average rating score is 2.71, and is based on 22 buy ratings, 6 hold ratings, and 2 sell ratings.

Will Nvidia continue to grow? ›

Nvidia's end-market opportunities are going to expand substantially in the future. The growing applications of its graphics cards and its expansion into new verticals such as server processors could supercharge its growth.

Is Nvidia going to keep going up? ›

On a fundamental level, Nvidia earnings and sales are expected to keep growing, though at a less torrid pace than seen in recent years. The chipmaker is expanding in growth areas, such as data centers, automated cars and cloud gaming.

Why is Nvidia PE ratio so high? ›

NVIDIA's P/E

In general, there are two reasons for a high P/E ratio. One, that investors expect much higher earnings in the future, and the second, that the stock is overpriced.

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