Download PDF

1. Company Snapshot

1.a. Company Description

NVIDIA Corporation provides graphics, and compute and networking solutions in the United States, Taiwan, China, and internationally.The company's Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building 3D designs and virtual worlds.Its Compute & Networking segment provides Data Center platforms and systems for AI, HPC, and accelerated computing; Mellanox networking and interconnect solutions; automotive AI Cockpit, autonomous driving development agreements, and autonomous vehicle solutions; cryptocurrency mining processors; Jetson for robotics and other embedded platforms; and NVIDIA AI Enterprise and other software.


The company's products are used in gaming, professional visualization, datacenter, and automotive markets.NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, independent software vendors, Internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants.It has a strategic collaboration with Kroger Co. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.

Show Full description

1.b. Last Insights on NVDA

NVIDIA Corporation's recent performance has been driven by several positive factors. Robust AI infrastructure demand and a strong industry position have poised the company for significant growth ahead of its Q3 '26 earnings. Hyperscalers like Microsoft, Alphabet, and Amazon are driving record capital outlays for compute capacity, reinforcing NVDA's durable growth trajectory. Analysts have raised their price targets, with a 12-month target price of $309.5, indicating substantial upside potential. Needham and Company LLC has a buy rating on the stock, citing its dominance in both the U.S. and China.

1.c. Company Highlights

2. NVIDIA's Q3 Earnings Shine, Driven by Data Center Growth

NVIDIA Corporation reported a stellar third quarter, with revenue surging to $57 billion, a 62% year-over-year increase and a record sequential revenue growth of $10 billion or 22%. The company's data center revenue reached a record $51 billion, up 66% year-over-year, driven by growth in compute and networking. The actual EPS came out at $1.3, beating estimates of $1.26. Gross margins were also impressive, at 73.4% GAAP and 73.6% non-GAAP, exceeding the company's outlook.

Publication Date: Nov -21

📋 Highlights
  • Q3 Revenue Surge: NVIDIA reported $57 billion revenue, a 62% YoY increase and 22% sequential growth, driven by data center demand.
  • Data Center Record: Data center revenue hit $51 billion (+66% YoY), with Hopper platform revenue at $2 billion and Blackwell gaining momentum.
  • Blackwell Momentum: Blackwell platform revenue forecasts $500 billion by FY26, with $50 billion already shipped, fueled by GB 300’s two-thirds contribution.
  • Q4 Guidance: NVIDIA expects $65 billion revenue (±2%) in Q4, a 14% sequential rise, as Blackwell architecture gains traction.
  • Gross Margin Strength: GAAP and non-GAAP gross margins reached 73.4% and 73.6%, exceeding expectations amid $600 billion AI infrastructure demand.

Data Center Revenue and Product Momentum

The company's data center revenue was driven by the NVIDIA Hopper platform, which generated approximately $2 billion in revenue, while the Blackwell platform gained momentum, with GB 300 contributing roughly two-thirds of total Blackwell revenue. The company's CEO, Jensen Huang, noted that the demand for AI infrastructure is high, with NVIDIA's GPUs being used by hyperscalers, and the company is seeing an opportunity for more growth on top of the $500 billion announced.

Growth Prospects and Industry Trends

NVIDIA is well-positioned to benefit from the trend of AI impacting every industry, with its strategic partnerships with companies like OpenAI, Anthropic, and Palantir. The company's investment thesis involves partnering with top companies to expand its ecosystem and gain a share in the successful AI industry. Jensen Huang mentioned that AI is driving growth in the data center and will contribute to infrastructure growth in the coming years.

Valuation and Financial Metrics

With a P/E Ratio of 44.3 and an EV/EBITDA of 38.96, NVIDIA's valuation reflects its strong growth prospects. The company's ROIC is an impressive 69.05%, and its ROE is 103.82%. Analysts estimate next year's revenue growth at 62.2%, which is factored into the current valuation. The company's free cash flow yield is 1.76%, indicating a reasonable return for investors.

Future Outlook and Challenges

NVIDIA expects total revenue to be $65 billion, plus or minus 2%, in the fourth quarter, implying 14% sequential growth driven by continued momentum in the Blackwell architecture. The company is confident in its ability to manage potential bottlenecks, such as power, supply chain, and financing constraints. Jensen Huang noted that the company's architecture delivers the best performance per watt and TCL, driving the most revenues.

3. NewsRoom

Card image cap

China's Nvidia-like Moore Threads set for trading debut after $1.1 billion IPO

01:09

Source: reuters.com

Card image cap

NVDA "Rising Tide," AVGO Accelerating Demand, GOOGL & AMZN Power Competition

01:00

Source: youtube.com

Card image cap

Nvidia vs Taiwan Semiconductor Manufacturing: Which Artificial Intelligence (AI) Stock Is a Better Buy Right Now?

Dec -04

Source: fool.com

Card image cap

Overlooked Sectors Find Promise While NVDA, AMD & MSFT Show Tech Muscles

Dec -04

Source: youtube.com

Card image cap

Market Today: WBD Sale Bids, Meta Cuts, Apple Shake-Up

Dec -04

Source: gurufocus.com

Card image cap

I Think These Are the 3 Best AI Stocks to Buy in December

Dec -04

Source: fool.com

Card image cap

What's Going On With Nvidia Stock Today?

Dec -04

Source: feeds.benzinga.com

Card image cap

Dow Jones Today: Major Stock Indexes Little Changed; Weekly Jobless Claims Unexpectedly Fall; Inflation Data on Tap Tomorrow

Dec -04

Source: investopedia.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (39.86%)

6. Segments

Compute & Networking

Expected Growth: 43.5%

Growing demand for AI computing, high-performance computing, and networking in datacenters drives NVIDIA's Compute & Networking segment.

Graphics

Expected Growth: 10.3%

Growing demand for gaming and mainstream markets, driven by increasing adoption, and rising popularity of e-sports and cloud gaming

7. Detailed Products

GeForce Graphics Cards

High-performance graphics processing units (GPUs) for gaming, professional visualization, and AI computing

Quadro Graphics Cards

Professional-grade GPUs for workstations, designed for engineering, architecture, and video production

Tesla V100 and T4 GPUs

Datacenter-grade GPUs for AI, high-performance computing, and cloud computing

NVIDIA DGX-1 and DGX-2

AI supercomputers for datacenter and cloud deployments

NVIDIA Shield

Gaming console and streaming device for 4K entertainment

NVIDIA Drive

AI computing platform for autonomous vehicles

NVIDIA Jetson

AI computing platform for edge devices and robots

NVIDIA Clara

AI computing platform for healthcare and medical imaging

8. NVIDIA Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

NVIDIA's products are highly specialized and customized, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

While NVIDIA has a large customer base, its products are often highly customized, giving customers some bargaining power.

Bargaining Power Of Suppliers

NVIDIA has a diverse supplier base, and its suppliers have limited bargaining power due to the company's large scale and negotiating power.

Threat Of New Entrants

The graphics processing unit (GPU) market has high barriers to entry, including significant R&D investments and manufacturing capabilities, making it difficult for new entrants to emerge.

Intensity Of Rivalry

The GPU market is highly competitive, with NVIDIA facing intense competition from AMD and other players, leading to a high level of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.78%
Debt Cost 3.95%
Equity Weight 81.22%
Equity Cost 12.66%
WACC 11.02%
Leverage 23.12%

11. Quality Control: NVIDIA Corporation passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NVIDIA

A-Score: 5.3/10

Value: 0.0

Growth: 10.0

Quality: 9.2

Yield: 0.0

Momentum: 8.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Analog Devices

A-Score: 4.8/10

Value: 1.1

Growth: 4.6

Quality: 7.3

Yield: 4.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
GLOBALFOUNDRIES

A-Score: 3.7/10

Value: 5.4

Growth: 5.0

Quality: 4.2

Yield: 0.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
AMD

A-Score: 3.6/10

Value: 0.2

Growth: 6.8

Quality: 6.6

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Intel

A-Score: 3.5/10

Value: 4.1

Growth: 1.2

Quality: 3.2

Yield: 1.0

Momentum: 9.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
ON Semiconductor

A-Score: 3.3/10

Value: 2.8

Growth: 6.9

Quality: 5.7

Yield: 0.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

181.92$

Current Price

181.92$

Potential

-0.00%

Expected Cash-Flows