Is NVIDIA Stock a Good Investment?
NVIDIA Investment Advice | NVDA |
- Examine NVIDIA's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research NVIDIA's leadership team and their track record. Good management can help NVIDIA navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact NVIDIA's business and its evolving consumer preferences.
- Compare NVIDIA's performance and market position to its competitors. Analyze how NVIDIA is positioned in terms of product offerings, innovation, and market share.
- Check if NVIDIA pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about NVIDIA's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in NVIDIA stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if NVIDIA is a good investment.
Sell | Buy |
Strong Buy
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine NVIDIA Stock
Researching NVIDIA's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 66.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.8. NVIDIA last dividend was issued on the 12th of September 2024. The entity had 10:1 split on the 10th of June 2024.
To determine if NVIDIA is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding NVIDIA's research are outlined below:
| NVIDIA has a poor financial position based on the latest SEC disclosures | |
| About 66.0% of the company shares are owned by institutional investors | |
| Latest headline from watcher.guru: Quantum Stock Surge Outshines Nvidia |
NVIDIA Quarterly Liabilities And Stockholders Equity |
|
NVIDIA uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in NVIDIA. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to NVIDIA's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 21st of February 2024 Upcoming Quarterly Report | View | |
| 22nd of May 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 21st of February 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of January 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact NVIDIA's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises NVIDIA's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2016-08-11 | 2016-07-31 | 0.009 | 0.01 | 0.001 | 11 | ||
2016-02-17 | 2016-01-31 | 0.008 | 0.009 | 0.001 | 12 | ||
2015-08-06 | 2015-07-31 | 0.003 | 0.004 | 0.001 | 33 | ||
2014-11-06 | 2014-10-31 | 0.007 | 0.008 | 0.001 | 14 | ||
2014-08-07 | 2014-07-31 | 0.005 | 0.006 | 0.001 | 20 | ||
2014-02-12 | 2014-01-31 | 0.005 | 0.006 | 0.001 | 20 | ||
2013-08-08 | 2013-07-31 | 0.003 | 0.004 | 0.001 | 33 | ||
2013-02-13 | 2013-01-31 | 0.006 | 0.007 | 0.001 | 16 |
Know NVIDIA's Top 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 originate 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 | Northern Trust Corp | 2024-09-30 | 230.2 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 180.4 M | Bank Of New York Mellon Corp | 2024-09-30 | 175 M | Nuveen Asset Management, Llc | 2024-09-30 | 163.6 M | Wellington Management Company Llp | 2024-09-30 | 146.5 M | Charles Schwab Investment Management Inc | 2024-09-30 | 146.1 M | Goldman Sachs Group Inc | 2024-09-30 | 138.7 M | Capital World Investors | 2024-09-30 | 132.4 M | Amvescap Plc. | 2024-09-30 | 120.7 M | Vanguard Group Inc | 2024-09-30 | 2.1 B | Blackrock Inc | 2024-06-30 | 1.8 B |
NVIDIA's market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 3.2 T.Market Cap |
|
NVIDIA's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.49 | 0.20 | |
| Return On Capital Employed | 0.60 | 0.18 | |
| Return On Assets | 0.45 | 0.15 | |
| Return On Equity | 0.69 | 0.26 |
Determining NVIDIA's profitability involves analyzing its financial statements and using various financial metrics to determine if NVIDIA is a good buy. For example, gross profit margin measures NVIDIA's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of NVIDIA's profitability and make more informed investment decisions.
NVIDIA's Earnings Breakdown by Geography
Please note, the presentation of NVIDIA's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, NVIDIA's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of NVIDIA's management manipulating its earnings.
Evaluate NVIDIA's management efficiency
NVIDIA has return on total asset (ROA) of 0.5526 % which means that it generated a profit of $0.5526 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 1.2377 %, meaning that it created $1.2377 on every $100 dollars invested by stockholders. NVIDIA's management efficiency ratios could be used to measure how well NVIDIA manages its routine affairs as well as how well it operates its assets and liabilities. As of December 20, 2024, Return On Tangible Assets is expected to decline to 0.20. In addition to that, Return On Capital Employed is expected to decline to 0.18. At present, NVIDIA's Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 22.5 B, whereas Return On Tangible Assets are forecasted to decline to 0.20.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 1.74 | 0.68 | |
| Tangible Book Value Per Share | 1.52 | 0.40 | |
| Enterprise Value Over EBITDA | 43.45 | 58.60 | |
| Price Book Value Ratio | 35.89 | 19.34 | |
| Enterprise Value Multiple | 43.45 | 58.60 | |
| Price Fair Value | 35.89 | 19.34 | |
| Enterprise Value | 216.3 M | 205.5 M |
Management at NVIDIA focuses on leveraging technology and optimizing operations. We evaluate the impact of these focuses on the company's financial health and stock performance.
Dividend Yield 0.0003 | Forward Dividend Yield 0.0003 | Forward Dividend Rate 0.04 | Beta 1.657 |
Basic technical analysis of NVIDIA Stock
As of the 20th of December, NVIDIA secures the risk adjusted performance of 0.0891, and Mean Deviation of 1.88. In respect to fundamental indicators, the technical analysis model lets you check practical technical drivers of NVIDIA, as well as the relationship between them.NVIDIA's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific NVIDIA insiders, such as employees or executives, is commonly permitted as long as it does not rely on NVIDIA's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases NVIDIA insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Hudson Dawn E over six months ago Disposition of 5000 shares by Hudson Dawn E of NVIDIA at 1150.03 subject to Rule 16b-3 | ||
Tim Teter over a year ago Payment of 6547 shares by Tim Teter of NVIDIA subject to Rule 16b-3 | ||
White David L 1 over a year ago Acquisition by White David L 1 of 450000 shares of NVIDIA subject to Rule 16b-3 |
NVIDIA's Outstanding Corporate Bonds
NVIDIA issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. NVIDIA uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most NVIDIA bonds can be classified according to their maturity, which is the date when NVIDIA has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| NVIDIA PORATION Corp BondUS67066GAN43 | View | |
| NVIDIA PORATION Corp BondUS67066GAM69 | View | |
| US67066GAJ31 Corp BondUS67066GAJ31 | View | |
| NVIDIA PORATION Corp BondUS67066GAG91 | View | |
| NVIDIA PORATION Corp BondUS67066GAH74 | View | |
| NVIDIA P 32 Corp BondUS67066GAE44 | View | |
| NVIDIA PORATION Corp BondUS67066GAF19 | View |
Understand NVIDIA's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing NVIDIA's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0891 | |||
| Market Risk Adjusted Performance | 0.2942 | |||
| Mean Deviation | 1.88 | |||
| Semi Deviation | 2.16 | |||
| Downside Deviation | 2.33 | |||
| Coefficient Of Variation | 962.04 | |||
| Standard Deviation | 2.33 | |||
| Variance | 5.44 | |||
| Information Ratio | 0.0896 | |||
| Jensen Alpha | 0.2133 | |||
| Total Risk Alpha | 0.1636 | |||
| Sortino Ratio | 0.0898 | |||
| Treynor Ratio | 0.2842 | |||
| Maximum Drawdown | 9.07 | |||
| Value At Risk | (3.66) | |||
| Potential Upside | 4.05 | |||
| Downside Variance | 5.42 | |||
| Semi Variance | 4.65 | |||
| Expected Short fall | (1.96) | |||
| Skewness | (0.08) | |||
| Kurtosis | (0.57) |
| Risk Adjusted Performance | 0.0891 | |||
| Market Risk Adjusted Performance | 0.2942 | |||
| Mean Deviation | 1.88 | |||
| Semi Deviation | 2.16 | |||
| Downside Deviation | 2.33 | |||
| Coefficient Of Variation | 962.04 | |||
| Standard Deviation | 2.33 | |||
| Variance | 5.44 | |||
| Information Ratio | 0.0896 | |||
| Jensen Alpha | 0.2133 | |||
| Total Risk Alpha | 0.1636 | |||
| Sortino Ratio | 0.0898 | |||
| Treynor Ratio | 0.2842 | |||
| Maximum Drawdown | 9.07 | |||
| Value At Risk | (3.66) | |||
| Potential Upside | 4.05 | |||
| Downside Variance | 5.42 | |||
| Semi Variance | 4.65 | |||
| Expected Short fall | (1.96) | |||
| Skewness | (0.08) | |||
| Kurtosis | (0.57) |
Consider NVIDIA's intraday indicators
NVIDIA intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of NVIDIA stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
NVIDIA Corporate Filings
F4 | 18th of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 20th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 14th of November 2024 Other Reports | ViewVerify | |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
NVIDIA Stock media impact
Far too much social signal, news, headlines, and media speculation about NVIDIA that are available to investors today. That information is available publicly through NVIDIA media outlets and privately through word of mouth or via NVIDIA internal channels. However, regardless of the origin, that massive amount of NVIDIA data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of NVIDIA news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of NVIDIA relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to NVIDIA's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive NVIDIA alpha.
NVIDIA Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards NVIDIA can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
NVIDIA Historical Investor Sentiment
Investor biases related to NVIDIA's public news can be used to forecast risks associated with an investment in NVIDIA. The trend in average sentiment can be used to explain how an investor holding NVIDIA can time the market purely based on public headlines and social activities around NVIDIA. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
NVIDIA's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for NVIDIA and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average NVIDIA news discussions. The higher the estimate score, the more favorable the investor's outlook on NVIDIA.
NVIDIA Corporate Management
| Ajay Puri | Executive VP of Worldwide Field Operations | Profile | |
| Mylene Mangalindan | VP Communications | Profile | |
| Timothy JD | General VP | Profile | |
| Prof Dally | Chief Research | Profile | |
| Brian Kelleher | Senior Engineering | Profile | |
| JD CFA | Vice Relations | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NVIDIA. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. For information on how to trade NVIDIA Stock refer to our How to Trade NVIDIA Stock guide.You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Is Semiconductors & Semiconductor Equipment space 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 1.68 | Earnings Share 2.53 | Revenue Per Share 3.91 | Quarterly Revenue Growth 1.224 | Return On Assets 0.5526 |
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.
In summary, please note that there is a difference between NVIDIA's value and its price, as these two are different measures arrived at by various 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.