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NVIDIA Corporation (NVDA) is poised to build lasting advantage and drive significant growth through pioneering semiconductor advances and strategic partnerships. But does this position NVDA as a standout stock with unparalleled growth and profits this year? Let’s find out…
NVIDIA Corporation (NVDA) illustrates the culmination of market enthusiasm for artificial intelligence. Known for semiconductor innovation, his NVDA chips serve as the foundation for the AI field. Through strategic partnerships and collaborations, the company strengthens its market leadership and continually pushes the boundaries of technological advancement.
On March 7th, NVDA partnered with HP Inc. (HPQ) to Integrates NVIDIA CUDA-X™ data processing library The introduction of the HPQ AI workstation solution represents a major advancement for the company. The partnership is expected to strengthen his NVDA’s position in the AI development landscape by accelerating data preparation and processing capabilities, enhancing offerings, and appealing to developers looking for efficient solutions. It has been.
moreover, Announcement of StarCoder2 In partnership with ServiceNow, Inc., on February 28th (now) and Hugface highlight NVDA’s commitment to innovation.
These unique alliances and breakthrough advances further demonstrate NVDA’s competitive technological advantage and open new areas for business expansion into the future. The company is enabling faster AI model development for a wide range of applications, further increasing its competitiveness in a rapidly crescent global AI market that foresees sustained growth and further innovation.
NVDA stock rose 18.8% and 92.9% over the past month and a half, closing at $879.44.
Financial aspects of NVDA that may impact price performance in the short term include:
mixed finance
NVDA’s non-GAAP revenue for the fourth quarter of the fiscal year ended January 28, 2024 was $22.1 billion, an increase of 265.3% from the prior year period. Non-GAAP net income and non-GAAP EPS were $12.84 billion and $5.16 per share, increases of 490.6% and 486.4%, respectively, from the prior year period.
However, as of January 28, 2024, NVDA total Current Liabilities The amount increased from $6.56 billion as of January 29, 2023 to $10.63 billion.
Historically strong growth
Over the past three years, NVDA’s revenue and EBITDA have grown at a CAGR of 54% and 81%, respectively. Net income and EPS grew at a CAGR of 90.1% and 90.3%, respectively. Additionally, the company’s leveraged free cash flow increased at a CAGR of 74.6% over the same period.
optimistic analyst forecasts
The consensus revenue estimate for the fiscal year ending January 2025 is $110.57 billion, reflecting an 81.5% year-over-year increase. Similarly, the company’s EPS for the current fiscal year is expected to be $24.66, up 90.3% year-over-year. Additionally, the company beat consensus revenue and EPS estimates in all four of his subsequent quarters.
healthy profitability
The company’s trailing twelve month gross profit margin and trailing twelve month EBITDA margin were 72.72% and 56.60%, which were 49.1% and 515.3% higher than the industry average of 48.76% and 9.20%, respectively. Additionally, the company’s trailing 12-month leveraged FCF margin of 32.61% is 261.5% higher than the industry average of 9.02%.
expanded assessment
In terms of non-GAAP forward P/E, NVDA is trading at 36.85x, 48.2% above the industry average of 24.87x. The company’s forward EV/Sales and forward EV/EBITDA are 20.10x and 31.67x, which are 588% and 110.7% higher than the industry averages of 2.92x and 15.03x, respectively. Additionally, the company’s forward price/sales ratio is 20.23x, compared to the industry average of 2.93x.
POWR Ratings Show Mixed Outlook
NVDA’s outlook is power rating. The stock has an overall rating of C, which equates to Neutral according to our proprietary rating system. POWR ratings are calculated by considering 118 different factors, with each factor weighted to the best degree.
Our proprietary rating system also evaluates each stock based on eight different categories. NVDA shows impressive growth prospects and its historical track record has earned it a consistent A grade. However, its valuation rating is a less favorable D grade, mainly due to its high valuation.
In terms of stability, NVDA faces an obvious hurdle in the F grade. This is highlighted by the stock’s 24-month beta of 1.95, indicating high volatility.
NVDA is ranked #22 out of 90. Semiconductor & wireless chips industry. click here Access NVDA’s momentum, sentiment, and quality ratings.
conclusion
NVDA has the potential to establish itself as a leader in artificial intelligence and drive long-term advantage and growth through breakthrough semiconductor advances. The strategic alliance, which strengthens the company’s AI offerings, strengthens NVDA’s technology advantage and market leadership.
However, given the stock’s current valuation and stability, it may be wise to hold off until a more favorable entry time.
How does NVIDIA Corporation (NVDA) stack up against its competitors?
NVDA has an overall grade of C, which equates to a Neutral rating, but these A (Strong Buy) and B (Buy) rated stocks Semiconductor & wireless chips Industry: Cirrus Logic, Inc. (Cruz), ChipMOS TECHNOLOGIES INC. (Imos) and Everspin Technologies, Inc. (MRAM). To explore more semiconductor and wireless chip stocks, click here.
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NVDA stock rose $6.30 (+0.72%) in pre-market trading on Friday. Year-to-date, NVDA has risen 77.59%. In comparison, the benchmark S&P 500 index rose 8.34% in the same period.
About the author: Aanchal Sugandh
Aanchal’s passion for financial markets drives his work as an investment analyst and journalist. She earned a bachelor’s degree in finance and is pursuing her CFA program. She is adept at using fundamental analysis skills to assess the long-term prospects of stocks. Her goal is to help investors build portfolios that deliver sustainable returns.
post Nvidia (NVDA): 2024 growth forecast and investment potential It first appeared stocknews.com