NVIDIA: A Solid Investment for a Recession

July 26, 2022

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NVIDIA Intrinsic Value – With the Federal Reserve Bank struggling to control rampant inflation by hiking rates, a recession is becoming more and more likely, and already, we’re seeing signs that perhaps the US is already in a recession. For investors, now is the time to be considering how to best set up your portfolio in readiness for a recession and look for firms well insulated to a downturn. To do so, we’ll utilize the benefit of hindsight and consider advice from the 2008 Great Recession, assessing the Top 100 US Firms and score firms based on their recession preparedness. Ranking Recession Readiness is a series of articles I’m authoring based on academic research along with advice from business leaders who took their firms through the Great Recession of 2008, to help investors identify which top 100 US firms are positioned to strive through a downturn, and which firms will stumble. Today’s article takes a look at NVIDIA ($NASDAQ:NVDA), a tech manufacturing powerhouse that has enjoyed a very solid run in the past few years and become an investment darling. So let’s break down NVDA into pieces, examining how well put together the firm is and how prepared the firm’s balance sheet is heading into a recession. From examining NVIDIA’s balance sheet and their overall financial stability, it seems that they are a solid investment for a recession. Even though their earnings might be affected in the short term, in the long term NVIDIA is a company that will continue to thrive.

Market Reaction

On Monday, NVIDIA Corp.oration (NVDA) stock opened at $170.2 per share and closed at $170.2 per share. Despite the current economic recession, analysts believe that NVIDIA is a solid investment due to the company’s strong financial position and its leadership in the graphics processing unit (GPU) market. The company’s GPUs are used in gaming, professional visualization, data center, and automotive applications. NVIDIA’s products are well-positioned to benefit from the growth of these markets. Analysts believe NVIDIA is a solid investment despite the current economic recession. The company has a strong financial position and is a leader in the GPU market. NVIDIA’s products are well-positioned to benefit from the growth of several key markets.


VI Analysis – NVIDIA Intrinsic Value

Company’s fundamentals reflect its long term potential, as seen in the below analysis of NVIDIA by the VI app. NVIDIA Intrinsic Value is around $213.8, as calculated by the VI Line. NVIDIA stock is currently traded at $170.2, meaning it is undervalued by 21%.

nvidia intrinsic value


Although NVIDIA’s stock price took a hit the day after this article was published, the company is still a solid investment for a recession. The company has a strong history of weathering economic downturns and continuing to grow. In addition, NVIDIA is diversified across several different industries, which helps protect it from sector-specific economic weakness. For investors looking for stability and growth potential during a recession, NVIDIA is a great option.

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