Nvidia Corporation Stock Intrinsic Value – NVIDIA Named Top Chip Stock Pick by Analyst, Knocking Out AMD
December 8, 2023
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NVIDIA ($NASDAQ:NVDA) Corporation is a leading graphics processing unit (GPU) manufacturer. Its stock has recently been named the top chip stock pick by a prominent analyst, surpassing rival AMD. This move has been seen as a major victory for NVIDIA and its shareholders. The analyst in question, Robert Dow, made the decision to upgrade NVIDIA’s stock from an “equal weight” rating to an “overweight” rating, citing strong fundamentals and promising growth opportunities in the future. He believes that NVIDIA is better-positioned to weather the current market environment and is set to benefit from potential growth in adoption of its products.
In addition, Dow is optimistic about the potential of NVIDIA’s graphics chips in data centers and gaming applications. He also praised the company’s cost structure and competitive products, noting its product range as one of its main advantages when compared to other chip manufacturers. Furthermore, it likely signals that AMD may soon face increased competition in the graphics chip market. For investors, this could mean that NVIDIA is an attractive option for those looking for growth in the chip sector.
Market Price
On Monday, NVIDIA CORPORATION stock opened at $460.8 and closed at $455.1, down by 2.7% from the previous closing price of 467.6. The analyst noted that NVIDIA’s dominant position in gaming and AI-driven data centers gave it the edge over AMD, which has seen a rise in market capitalization but is still trailing NVIDIA in market share. Despite its recent dip, analysts remain bullish on the stock, expecting further growth driven by its leading position in the chip market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Nvidia Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 44.87k | 18.89k | 42.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nvidia Corporation. More…
| Operations | Investing | Financing |
| 18.84k | -4.46k | -11.66k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Nvidia Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 54.15k | 20.88k | 13.49 |
Key Ratios Snapshot
Some of the financial key ratios for Nvidia Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 44.8% | 72.5% | 47.4% |
| FCF Margin | ROE | ROA |
| 39.0% | 43.7% | 24.5% |
Analysis – Nvidia Corporation Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of NVIDIA CORPORATION‘s financials, and our proprietary Valuation Line indicates that the intrinsic value of its share is around $376.4. Currently, the stock is trading at $455.1 – overvalued by an impressive 20.9%. We believe this presents a great opportunity for potential investors to scoop up NVIDIA CORPORATION shares at a discounted price. More…
Peers
Nvidia Corporation is an American technology company headquartered in Santa Clara, California. It designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SOCs) for the mobile computing and automotive market. Nvidia’s primary GPU product line, labeled “GeForce”, is in direct competition with Advanced Micro Devices’ (AMD) “Radeon” products.
– NeoPhotonics Corp ($SHSE:688521)
VeriSilicon Microelectronics Shanghai Co Ltd is a fabless semiconductor company that designs, develops, and markets integrated circuits (ICs) and other semiconductor products. The company’s product portfolio includes power management ICs, digital signal processors, and other mixed-signal ICs for a range of end markets, including automotive, consumer, industrial, and communications. VeriSilicon Microelectronics Shanghai Co Ltd was founded in 2001 and is headquartered in Shanghai, China.
– VeriSilicon Microelectronics Shanghai Co Ltd ($TPEX:4925)
JMicron Technology Corp is a leading provider of innovative semiconductor solutions. The company’s products include high-speed data converters, storage controllers, and Ethernet controllers. JMicron’s products are used in a variety of applications including consumer electronics, computing, and storage. The company has a market cap of 4.02B and a return on equity of 10.28%. JMicron is a publicly traded company on the Taiwan Stock Exchange.
Summary
Investment analysts have recently turned to Nvidia Corporation as their top pick in chip stocks, surpassing rival AMD. Analysts have noted its strong financial performance, driven by strong demand for its gaming and data center products. They also cite the success of its AI and machine learning products, as well as the potential of its autonomous driving platform to generate further revenue.
Its stock price has advanced greatly in recent months, suggesting that investors are optimistic about the company’s prospects. As such, Nvidia’s stock is worth considering for those in the market for chip stocks.
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