Nvidia stock price prediction And Forecast: It is Multibagger

Nvidia Stock Price Prediction: A Good Buy for Long-Term Investors

Introduction

NVIDIA Corp (NASDAQ: NVDA) NVIDIA Stock Forecast and Price Prediction


Nvidia Corporation (NVDA) is a leading designer and manufacturer of graphics processing units (GPUs). GPUs are specialized processors that can accelerate the processing of graphics and other computationally intensive tasks. Nvidia’s GPUs are used in a wide range of applications, including gaming, data center computing, artificial intelligence, and autonomous driving. and the company’s products are used by some of the world’s largest companies, including Google, Amazon, and Microsoft.


Nvidia has been one of the best-performing technology stocks in recent years, as its GPUs have become increasingly essential for many emerging technologies. The company’s revenue has grown at a compound annual growth rate (CAGR) of over 40% over the past five years, and its earnings have grown at a CAGR of over 50%.

Nvidia’s business is divided into four segments:


  1. Gaming: This segment includes Nvidia’s GeForce GPUs, which are used in gaming consoles, PCs, and laptops.

  2. Datacenter: This segment includes Nvidia’s Quadro and Tesla GPUs, which are used in data centers for AI, machine learning, and other high-performance computing applications.

  3. Professional visualization: This segment includes Nvidia’s Quadro GPUs, which are used by designers, engineers, and other professionals for creating and consuming high-quality graphics and simulations.

  4. Automotive: This segment includes Nvidia’s Drive PX platform, which is used for autonomous driving.


Nvidia’s business is growing rapidly, and the company is well-positioned to benefit from several long-term trends, including the increasing demand for high-performance computing, AI, and autonomous driving.


Nvidia Sector And Industry Overview

Nvidia is a leading player in the Technology sector, within the Semiconductor industry. The semiconductor industry is responsible for designing and manufacturing the chips that are used in a wide range of electronic devices, including computers, smartphones, televisions, and cars.


Nvidia’s key financial metrics

Nvidia’s financial performance has been strong in recent years, with the company reporting record revenue and earnings in its most recent fiscal quarter.


2024


2024


2024-25


Sales

53 754 M

Sales

78 003 M

Capitalization

104 B

Net Income

23 568 M

Net Income

36 550 M

EV / Sales 2024

20,2x

Net Cash Position

16 456 M

Net Cash Position

42 571 M

EV / Sales 2025

13,6x

P/E Ratio

46,5x

P/E ratio

29,8x

Nbr of Employees

26 196

Yield

0,04%

Yield

0,04%

Free-Float

96,0%

Sales per Business



2022

2023

Delta

Compute & Networking

11 046.00

41%

15 068.00

55.9% 

+36.41%

Graphics

15 868.00

59%

11 906.00

44.1%

-24.97%

USD in Million

Sales Par Region

2022

2023

Delta

United States

4 349.00

16.2%

8 292.00

30.7%

+90.66%

Taiwan

8 544.00

31.7%

6 986.00

25.9%

-18.24%

Other Countries

6 910.00

25.7%

5 911.00

21.9%

-14.46%

China

7 111.00

26.4%

5 785.00

21.4%

-18.65%


NVIDIA Annual Income Statement Data: Past and Forecast


Fiscal Period: January

2021

2022

2023

2024

2025

2026

Net sales 1

16 675

26 914

26 974

53 754

78 003

94 936

EBITDA 1

5 630

11 215

5 768

27 976

39 258

48 266

Operating profit (EBIT) 1

6 803

12 690

9 040

31 052

46 649

56 225

Operating Margin

40,8%

47,2%

33,5%

57,8%

59,8%

59,2%

Pre-Tax Profit (EBT) 1

4 409

9 941

4 181

25 358

38 077

38 860

Net income 1

4 332

9 752

4 368

23 568

36 550

43 273

Net margin

26,0%

36,2%

16,2%

43,8%

46,9%

45,6%

EPS  2

1,73

3,85

1,74

9,61

15,0

17,6

Free Cash Flow 1

4 694

8 132

3 808

23 392

37 605

45 586

FCF margin

28,1%

30,2%

14,1%

43,5%

48,2%

48,0%

FCF Conversion

83,4%

72,5%

66,0%

83,6%

95,8%

94,4%

Dividend per Share 2

0,16

0,16

0,16

0,17

0,17

0,18

1 USD in Million 2 USD  Estimates

Nvidia Finances – Leverage: Past and Forecast

Past Leverage


Nvidia’s debt-to-equity ratio has averaged 1.6x over the past five years, with a peak of 1.9x in January 2023 and a low of 1.4x in January 2020. The company has consistently generated strong cash flow, which it has used to reduce debt and invest in growth.


Forecast Leverage


Analysts expect Nvidia’s debt-to-equity ratio to remain relatively low in the coming years. The company is expected to continue to generate strong cash flow, which it will use to invest in growth and reduce debt.

NVIDIA Stock Forecast, NVIDIA Stock Price Forecast

Nvidia Faces Growing Competition

These companies compete with Nvidia across a range of products and markets, including graphics processing units (GPUs), central processing units (CPUs), system-on-a-chip (SoC) units, and field-programmable gate arrays (FPGAs).


Nvidia’s main competitors include:

  • AMD

  • Intel

  • Qualcomm

  • Broadcom

  • Apple

  • MediaTek

  • Texas Instruments

  • Adanvned Micro Device, Inc.

  • Renesas Electronics

Nvidia is a leader in the GPU market, but its competitors are gaining ground. AMD, for example, has released a number of competitive GPUs in recent years, and Intel is expected to launch its own high-end GPUs in 2023.



NVIDIA Stock Forecast, NVIDIA Stock Price Forecast
image by marketscreener

Nvidia is also facing competition from Apple, which is developing its own custom chips for its Macs and iPhones. Apple’s chips are based on Arm technology, which is different from the x86 architecture that Nvidia and its competitors use. However, Apple’s chips have been well-received by critics and consumers, and they are becoming increasingly powerful.

Nvidia Financial Highlights

  • checked

    The operating income has soared by 140% from the previous quarter and by 35% YoY

  • checked

    NVDA’s net income has soared by 115% since the previous quarter and by 33% year-on-year

  • checked

    Nvidia’s operating margin has soared by 90% from the previous quarter and by 23% YoY

  • checked

    The net margin has soared by 71% from the previous quarter and by 22% YoY

  • checked

    NVDA’s EPS has soared by 115% from the previous quarter and by 35% YoY

  • checked

    NVDA’s net income has soared by 115% since the previous quarter and by 33% year-on-year

  • unchecked

    NVDA’s P/E is 65% above its 5-year quarterly average of 66.3 and 2.1% above its last 4 quarters average of 107.2

  • unchecked

    The quick ratio has contracted by 24% YoY and by 16% from the previous quarter


Nvidia Investment Thesis

Nvidia’s investment thesis is based on the following key factors:


  • Strong leadership in the GPU market: Nvidia has a dominant position in the GPU market, with over 80% market share. This gives the company a strong competitive advantage and allows it to generate high margins.

  • Growing demand for GPUs: The demand for GPUs is growing rapidly, driven by the increasing use of AI, machine learning, and data science. Nvidia is well-positioned to capitalize on this trend with its leading GPU products.

  • Diversified business model: Nvidia’s business model is diversified across multiple markets, including gaming, data center, and professional visualization. This reduces the company’s risk and provides it with opportunities for growth in different areas.

  • Strong financial performance: Nvidia has a strong track record of financial performance. The company has generated consistent revenue and earnings growth, and it has a healthy balance sheet.


Some of the risks associated with investing in Nvidia include


Competition: Nvidia faces increasing competition from AMD, Intel, and other companies in the GPU market. This competition could pressure Nvidia’s margins and market share.

Economic slowdown: An economic slowdown could reduce demand for Nvidia’s products, particularly in the gaming and consumer markets.

Technological disruption: New technologies could emerge that disrupt the GPU market and reduce demand for Nvidia’s products.


1st Jan change

Capi. (M$)


ESG

NVIDIA CORPORATION

205.79%

1103794

⭐⭐⭐⭐⭐

C+

INTEL CORPORATION 

35.79%

150307

C+

BROADCOM INC. 

47.35%

340036

⭐⭐⭐⭐

C

QUALCOMM, INC.

-0.13%

122537

⭐⭐

C+

ANALOG DEVICES, INC. 

4.92%

85760

⭐⭐

B+

ADVANCED MICRO DEVICES, INC. 

58.89%

166269

⭐⭐⭐

B-

Nvidia Daily Chart Technical Analysis

Nvidia’s stock (NVDA) closed at $457.60 on Friday, October 7, 2023. The stock is still in a Uptrand, but it is showing signs of a more potential reversal.




NVIDIA Stock Forecast, NVIDIA Stock Price Forecast
image by marketscreener

Investment Recommendation


Overall, Nvidia is a well-managed company with a strong leadership position in the GPU market. The company is also well-positioned to benefit from the growing demand for GPUs in a variety of markets. However, investors should be aware of the risks associated with investing in the company, such as competition, economic slowdown, and technological disruption.


For long-term investors who believe in Nvidia’s long-term growth prospects, the stock may be a good buy at current prices. However, investors who are concerned about Nvidia’s valuation or the risks associated with the company may want to wait for a pullback before buying the stock.


Disclaimer: This is not financial advice. Please do your own research before making any investment decisions.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top