Nvidia Stock Buy Hold or Sell Recommendation

NVDA Stock  USD 903.56  1.06  0.12%   
Given the investment horizon of 90 days and your complete indifference towards market risk, our recommendation regarding NVIDIA is 'Strong Hold'. Macroaxis provides NVIDIA buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding NVIDIA positions. The advice algorithm takes into account all of NVIDIA's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting NVIDIA's buy or sell advice are summarized below:
Real Value
775.31
Target Price
594.21
Hype Value
912.81
Market Value
903.56
Naive Value
896.65
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell NVIDIA given historical horizon and risk tolerance towards NVIDIA. When Macroaxis issues a 'buy' or 'sell' recommendation for NVIDIA, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out NVIDIA Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For information on how to trade NVIDIA Stock refer to our How to Trade NVIDIA Stock guide.
In addition, we conduct extensive research on individual companies such as NVIDIA and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards NVIDIA. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment.

Execute NVIDIA Buy or Sell Advice

The NVIDIA recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on NVIDIA. Macroaxis does not own or have any residual interests in NVIDIA or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute NVIDIA's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell NVIDIABuy NVIDIA
Strong Hold

Market Performance

SolidDetails

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Actively responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails
For the selected time horizon NVIDIA has a Risk Adjusted Performance of 0.1845, Jensen Alpha of 0.7475, Total Risk Alpha of 0.2761, Sortino Ratio of 0.3726 and Treynor Ratio of 0.5407
Macroaxis provides trade recommendations on NVIDIA to complement and cross-verify current analyst consensus on NVIDIA. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure NVIDIA is not overpriced, please verify all NVIDIA fundamentals, including its shares owned by institutions, gross profit, debt to equity, as well as the relationship between the price to book and cash and equivalents . Given that NVIDIA has a price to earning of 41.94 X, we recommend you to check NVIDIA market performance and probability of bankruptcy to ensure the company can sustain itself next year given your last-minute risk tolerance and investing horizon.

NVIDIA Trading Alerts and Improvement Suggestions

NVIDIA appears to be risky and price may revert if volatility continues
NVIDIA has a poor financial position based on the latest SEC disclosures
About 68.0% of the company shares are owned by institutional investors
On 27th of March 2024 NVIDIA paid $ 0.04 per share dividend to its current shareholders
Latest headline from finance.yahoo.com: 15 Biggest Software Companies in the UK

NVIDIA Returns Distribution Density

The distribution of NVIDIA's historical returns is an attempt to chart the uncertainty of NVIDIA's future price movements. The chart of the probability distribution of NVIDIA daily returns describes the distribution of returns around its average expected value. We use NVIDIA price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of NVIDIA returns is essential to provide solid investment advice for NVIDIA.
Mean Return
0.98
Value At Risk
-2.85
Potential Upside
4.97
Standard Deviation
3.10
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of NVIDIA historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

NVIDIA Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as NVIDIA is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading NVIDIA backward and forwards among themselves. NVIDIA's institutional investor refers to the entity that pools money to purchase NVIDIA's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Legal & General Group Plc2023-12-31
20.8 M
Bank Of New York Mellon Corp2023-12-31
20.4 M
Bank Of America Corp2023-12-31
19.8 M
Nuveen Asset Management, Llc2023-12-31
17.4 M
Jennison Associates Llc2023-12-31
14.3 M
Gqg Partners Llc2023-12-31
13.9 M
Alliancebernstein L.p.2023-12-31
13.8 M
Baillie Gifford & Co Limited.2023-12-31
13.8 M
Ubs Asset Mgmt Americas Inc2023-12-31
13.8 M
Vanguard Group Inc2023-12-31
204.5 M
Blackrock Inc2023-12-31
179.7 M
Note, although NVIDIA's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

NVIDIA Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory597M(524M)(774M)(2.6B)(98M)(102.9M)
Change In Cash10.1B(10.0B)1.1B1.4B3.9B4.1B
Free Cash Flow4.3B4.7B8.1B3.8B27.0B28.4B
Depreciation381M1.1B1.2B1.5B1.5B1.6B
Other Non Cash Items5M(20M)(53M)1.4B(516M)(490.2M)
Capital Expenditures489M1.1B976M1.8B1.1B1.1B
Net Income2.8B4.3B9.8B4.4B29.8B31.2B
End Period Cash Flow10.9B847M2.0B3.4B7.3B7.6B
Investments6.6B(10.0B)(8.6B)7.4B(10.6B)(10.0B)
Change Receivables(233M)(550M)(2.2B)822M739.8M776.8M
Dividends Paid390M395M399M398M(395M)(375.3M)
Change To Netincome867M1.1B1.5B583M670.5M484.9M
Net Borrowings(16M)(17M)5.0B4.0B4.6B4.8B

NVIDIA Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to NVIDIA or Semiconductors & Semiconductor Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that NVIDIA's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a NVIDIA stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.75
β
Beta against NYSE Composite1.80
σ
Overall volatility
3.18
Ir
Information ratio 0.27

NVIDIA Volatility Alert

NVIDIA currently demonstrates below-average downside deviation. It has Information Ratio of 0.27 and Jensen Alpha of 0.75. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure NVIDIA's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact NVIDIA's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

NVIDIA Fundamentals Vs Peers

Comparing NVIDIA's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze NVIDIA's direct or indirect competition across all of the common fundamentals between NVIDIA and the related equities. This way, we can detect undervalued stocks with similar characteristics as NVIDIA or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of NVIDIA's fundamental indicators could also be used in its relative valuation, which is a method of valuing NVIDIA by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare NVIDIA to competition
FundamentalsNVIDIAPeer Average
Return On Equity0.91-0.31
Return On Asset0.39-0.14
Profit Margin0.49 %(1.27) %
Operating Margin0.62 %(5.51) %
Current Valuation2.24 T16.62 B
Shares Outstanding2.5 B571.82 M
Shares Owned By Insiders4.00 %10.09 %
Shares Owned By Institutions68.05 %39.21 %
Number Of Shares Shorted30.32 M4.71 M
Price To Earning41.94 X28.72 X
Price To Book52.50 X9.51 X
Price To Sales37.04 X11.42 X
Revenue60.92 B9.43 B
Gross Profit15.36 B27.38 B
EBITDA34.48 B3.9 B
Net Income29.76 B570.98 M
Cash And Equivalents13.14 B2.7 B
Cash Per Share5.34 X5.01 X
Total Debt11.06 B5.32 B
Debt To Equity0.56 %48.70 %
Current Ratio3.39 X2.16 X
Book Value Per Share17.44 X1.93 K
Cash Flow From Operations28.09 B971.22 M
Short Ratio0.49 X4.00 X
Earnings Per Share11.91 X3.12 X
Price To Earnings To Growth1.22 X4.89 X
Target Price979.64
Number Of Employees29.6 K18.84 K
Beta1.73-0.15
Market Capitalization2.26 T19.03 B
Total Asset65.73 B29.47 B
Retained Earnings29.82 B9.33 B
Working Capital33.71 B1.48 B
Note: Payment of 6547 shares by Tim Teter of NVIDIA subject to Rule 16b-3 [view details]

NVIDIA Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as NVIDIA . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About NVIDIA Buy or Sell Advice

When is the right time to buy or sell NVIDIA? Buying financial instruments such as NVIDIA Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total11.7B11.9B11.1B11.6B
Total Assets44.2B41.2B65.7B69.0B

Use Investing Ideas to Build Portfolios

In addition to having NVIDIA in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Most Shorted Equities Theme
Dynamically calculated list of top equities currently trending upward via a buy-out by investors. The Most Shorted Equities theme has 219 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Most Shorted Equities Theme or any other thematic opportunities.
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When determining whether NVIDIA offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of NVIDIA's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Nvidia Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nvidia Stock:
Check out NVIDIA Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For information on how to trade NVIDIA Stock refer to our How to Trade NVIDIA Stock guide.
Note that the NVIDIA information on this page should be used as a complementary analysis to other NVIDIA's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.

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Is NVIDIA's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NVIDIA. If investors know NVIDIA will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NVIDIA listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
7.613
Dividend Share
0.16
Earnings Share
11.91
Revenue Per Share
24.675
Quarterly Revenue Growth
2.653
The market value of NVIDIA is measured differently than its book value, which is the value of NVIDIA that is recorded on the company's balance sheet. Investors also form their own opinion of NVIDIA's value that differs from its market value or its book value, called intrinsic value, which is NVIDIA's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NVIDIA's market value can be influenced by many factors that don't directly affect NVIDIA's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between NVIDIA's value and its price as these two are different measures arrived at by different means. Investors typically determine if NVIDIA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NVIDIA's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.