NVIDIA Stock analysis
As you all know, I am a big believer in NVIDIA – I got into a really solid position sixteen months ago, and today, I’m enjoying an excellent return. And, even though we did talk about NVIDIA not too long ago, I want to have another look at them, because they released their revenue report last week.
Before we dive into this NVidia report, I just want to take a second and remind you to give me a thumbs up and share the video on social media if you enjoy my videos and want to see our community grow. And, in case you haven’t done it yet, go ahead and click that subscribe button to get the latest investing content directly in your inbox!
Also, I’d like to remind you that our Facebook group is now up and running! If you want to be a part of our growing community of motivated investors, you can apply by following the link in the description below. For a nominal fee, you get access to a ton of exclusive content (which is just too long for YouTube).
Founded over twenty-seven years ago, in 1993, NVIDIA has managed to consistently achieve great results under the leadership of its founder and CEO Jensen Huang. Currently, Mr Huang owns just 3.77% of all NVIDIA shares, which add up to about $11 billion.
For the investors today, NVIDIA is sort of like Facebook or Microsoft – a really solid company that pretty much everyone knows about. Just like with FB and MS, I am willing to bet that even if you don’t use their products, you know at least one person who does. They’re just that big and they’ve also demonstrated the ability to consistently grow and generate revenue over the years. Naturally, this combination makes them a prime choice for just about every long-term investor out there.
But, of course, that’s not all.
NVIDIA has spent the last decade setting developing a brand new generation of graphic card – the NVIDIA RTX. Currently, we are seeing the second generation come online and analysts predict a huge demand for it. And, remember guys, we’re talking about some pretty significant numbers – NVIDIA is a favourite of gamers from all over the world and their latest GPUs are in the $499 to $1499 range.
NVIDIA is currently looking to acquire Arm Holdings – a Cambridge-based semiconductor manufacturing and software design company. Their semiconductors are used a lot of the big chip manufacturers out there. Think Samsung, Qualcomm(QCOM), NXP (NXPI), and so on. On top of that, Amazon and Facebook rely on Arm tech for their services and the Oculus VR gear respectively. If everything goes well with the acquisition, things are going to look even better for NVIDIA.
So, let’s talk stats:
(data from Yahoo Finance as of 25.11.2020)
- Market Cap – 321 billion dollars
- P/E Ratio – 84.73
- EPS – 6.12
- Dividend – 0.64 (0.12%)
As far as market caps are concerned, NVIDIA is now worth way more than Intel and is definitely the industry leader for the field.
While Nvidia’s dividend yield is nothing to write home about, it’s still worth noting that they do pay some form of dividend to their investors.
The latest NVidia earning report lists some really impressive numbers, which is honestly nothing to be surprised of, considering their ability to consistently hit targets quarter after quarter.
- Sitting at around $4.7 billion, their revenue is up a staggering 57% from last year
- Their gaming revenue – $2.27 billion also went up by a significant amount – 37% up from last year (very consistent growth here, considering they were sitting at about $954 mil not too long ago)
- Data centre revenue is at $1.9 billion up 165% (they managed to triple the revenue from this over the last few quarters!)
Naturally, their price targets also went up by a significant margin, with analysts expecting prices in the range of $600 in the near future.
- Revenue went up from $3 billion to over $4.7 billion (excellent margin)
- Cost of revenue also looks fantastic, with them using up just $1.7 billion to make $2.9 billion (over 1 $billion increase in comparison to last year). And, yes the operating expenses also went up, but, as you can see, it was well-worth it.
- Income from operations went up by about $400 million.
They definitely had an excellent quarter, and if they manage to keep it up, they’re in for an amazing fiscal year. Or, even if they don’t keep growing at this phenomenal rate, they are definitely a buy stock right now.
And this concludes our review NVidia review. As a long-term investor who has been following the company for a while, I am more than pleased to see this type of results. Currently, I am holding on to my shares and I’ll be on the lookout for potential opportunities to add more NVidia stock to my portfolio.
Before we wrap it up for today, I just want to give you guys a quick update on our Private Investing Group. In case you missed the original announcement, I opened our group last week, and I’m currently in the process of looking through applications. I’m very happy with how things are going right now. We’ve already got quite a few very passionate and motivated long-term investors in here and the discussions are already underway. So, if you want to hop in and take control of your financial future, now’s your chance – the doors are still wide open and we’re still accepting new members.
Just a quick note here, please only apply to the group if you are actually serious about investing. I want only motivated and positive people. Negativity, doomsaying or trolling are a no-go.
And that’s about it for today.
As always, I want to thank everyone who is still watching, and, of course, to remind you to like and share this blog. If you still haven’t subscribed, well, now is the time! If you’ve stuck around until these last seconds, then there’s probably something you like here, so why not make sure that you never miss my new blogs?
And, if you have questions or ideas, drop them in the comments section – I always love hearing from you.
Thank you all for watching, and until next time!
Recommended books for further reading:
- The Ultimate Finance Book – Roger Mason
- Rich Dad’s Guide to Investing – Robert T Kiyosaki
- The Finance Book – Stuart Warner
- Intelligent Investor – Benjamin Graham
- Money: Know More, Make More, Give More – Rob Moore
If you are looking to open an investment account follow these links below: