| Company name | NVIDIA Corporation |
| Stock ticker | NVDA |
| Live stock price | [stckqut]NVDA[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $224.99 |
| Target stock price (averages with growth) | $184.17 |
| Target stock price (averages with no growth) | $184.17 |
| Target stock price (manual assumptions) | $201.26 |
The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/nvda
Nvidia Corporation, incorporated on February 24, 1998, focuses on personal computer (PC) graphics, graphics processing unit (GPU) and also on artificial intelligence (AI). The Company provides service to its customers through PC, mobile and cloud architectures. The Company operates through two segments: GPU and Tegra Processor, which are based on a single underlying architecture. The Company’s processor has created platforms that address four markets: Gaming, Professional Visualization, Datacenter, and Automotive. The Company’s GPU product brands are aimed at specialized markets, including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers, and GRID for cloud-based visual computing users. The Company’s Tegra brand integrates an entire computer onto a single chip, and incorporates GPUs and multi-core central processing units (CPUs) to drive supercomputing for mobile gaming and entertainment devices, as well as autonomous robots, drones and cars. NVIDIA has evolved the GPU into a computer brain at the intersection of virtual reality, high performance computing, or high-performance computing (HPC) and artificial intelligence.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in NVIDIA Corporation as long as the indicators that I describe in my book The Confident Investor are favorable.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of NVIDIA Corporation calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $145.5
- Growth: 0.17
- Current EPS (TTM): $5.28
- P/E: 28
- Future EPS Calc: $11.57
- Future Stock Price Calc: $324.13
- Target stock price: $201.26
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I hope that this makes you a Confident Investor.