NVIDIA Corporation (NVDA)
Fact & News
- Nvidia invented an Industry when it released the world’s 1st GPU in 1999.
- Nvidia's planned USD 40B acquisition of Arm may hit a roadblock due to Chinese regulators.
- Nvidia to build the world’s fastest AI supercomputer.
- NVDA is a constituent stock of the S&P 500 index.
Price | USD 534.44.
Long Term Trend | Up.
Short Term Trend | Downwards channel.
Support Line | USD 524, next support USD 479.
Resistance Line | USD 590.
Stochastic | In the neutral zone moving near towards oversold zone.
Valuation (TTM Trailing 12 Months to Jul 20)
Market Capitalization | USD 330B vs Enterprise Value (EV) USD 327B.
Price /Earnings (PE) | 98X. Expensive vs S&P average PE of 35X.
Price /Book (PB) | 24X. Expensive vs S&P average PB of 3.9X.
Dividend Yield (DY) | 0.12%. Very low vs average DY of S&P 1.7%.
Net Income | USD 3.4B (+2.1%).
Net Margin | 16%. This is HIGHER than 94% of the Semiconductors industry.
Interest Coverage | 12X. This is HIGHER than 60% of the Semiconductors industry.
Analyst Consensus
Target Price | USD 556.90.
Call | BUY.
Conclusion
NVDA's valuation is fairly expensive & the price trend is downwards short term. I like NVDA for 1) Expanding business reach to the data center, cloud computing & AI area, 2) Revenue jump 50% in Q2, driven by a 167% surge in data center sales, 3) EPS is projected to grow 58% vs historical growth rate of 37%, and 4) Demand for GPUs rising currently and maybe for a few years more. NVDA is ok for long term investor for its business potential. Short term trader might want to see whether USD 524 support can hold in the next week.
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