Last Updated: 14 Oct 2024
Executive Summary
NVIDIA Corporation (NVDA) is a leading designer and manufacturer of graphics processing units (GPUs) and system on a chip units (SoCs). The company's products are used in a wide range of applications, including gaming, professional visualization, data science, and artificial intelligence. NVIDIA has a strong track record of growth and profitability, and its stock has outperformed the broader market in recent years.
Company Overview
NVIDIA was founded in 1993 and is headquartered in Santa Clara, California. The company employs over 24,000 people worldwide and has a market capitalization of over $330 billion. NVIDIA's products are sold through a global network of distributors and resellers.
Fundamental Analysis
NVIDIA's financial performance has been strong in recent years. In the fiscal year ended January 2023, the company reported revenue of $26.9 billion, up 61% year-over-year. Net income was $9.7 billion, up 106% year-over-year. Diluted EPS was $2.13, up 102% year-over-year.
NVIDIA's strong financial performance is driven by several factors, including the growing demand for GPUs in gaming, data science, and artificial intelligence applications. The company's products are also well-positioned to benefit from the secular trend towards cloud computing.
Technical Analysis
NVIDIA's stock price has been in a strong uptrend since the beginning of 2023. The stock recently broke out of a consolidation pattern and is now trading near its 52-week high. The technical indicators are bullish, and the stock is likely to continue to trend higher in the short term.
Short Term Outlook
NVIDIA's stock is likely to continue to trend higher in the short term. The company's strong financial performance and positive technical outlook are supportive of further gains. The stock could reach $150 in the next few months.
Long Term Outlook
NVIDIA's long-term outlook is also positive. The company is a leader in the growing GPU market, and its products are well-positioned to benefit from the secular trend towards cloud computing. NVIDIA is also investing heavily in new technologies, such as artificial intelligence and autonomous driving. These investments are likely to drive future growth for the company.
Analyst Recommendations
The majority of analysts have a buy rating on NVIDIA's stock. The average analyst target price is $148.23, which implies a potential upside of 10% from the current price.
