Nvidia Corporation (NASDAQ: NVDA) is a global leader in the design and manufacture of graphics processing units (GPUs). The company's GPUs are used in a wide range of applications, including gaming, professional visualization, data science, and artificial intelligence (AI).
Nvidia has been a major beneficiary of the growing demand for AI and other data-intensive applications. The company's revenue has grown by an average of 30% per year over the past five years, and its earnings per share (EPS) have grown by an average of 40% per year over the same period.
Nvidia's Stock Performance
Nvidia's stock has outperformed the broader market in recent years. The stock has gained 34% over the past 15 months, compared to a gain of 15% for the S&P 500 Index.
The following table shows Nvidia's stock performance over the past five years:
Year | Stock Price | % Change |
---|---|---|
2022 | $275.00 | 34% |
2021 | $205.00 | 20% |
2020 | $170.00 | 30% |
2019 | $130.00 | 25% |
2018 | $100.00 | 20% |
Factors Driving Nvidia's Stock Performance
Several factors are driving Nvidia's stock performance, including:
Risks to Nvidia's Stock Performance
There are some risks to Nvidia's stock performance, including:
Investment Thesis
Nvidia is a well-positioned company to benefit from the growing demand for AI and other data-intensive applications. The company has a strong financial performance and a leadership position in AI and other data-intensive technologies.
Recommendation
I recommend buying Nvidia stock. The stock is trading at a reasonable valuation and has the potential to generate significant returns over the next 15 months.
Here are some common mistakes to avoid when buying Nvidia stock:
Datasplosion
The term "datasplosion" refers to the exponential growth of data that is occurring in the world today. This growth is being driven by the increasing use of AI and other data-intensive applications.
Datasplosion is creating a number of new opportunities for Nvidia. The company's GPUs are essential for processing and analyzing large amounts of data. This makes Nvidia well-positioned to benefit from the growing demand for data-intensive applications.
Here are some new applications that could be created using Nvidia's GPUs:
These are just a few of the many new applications that could be created using Nvidia's GPUs. The potential for growth is enormous.
The following four tables provide some useful information about Nvidia stock:
Table 1: Nvidia's Financial Performance
Year | Revenue | EPS |
---|---|---|
2022 | $26.91 billion | $5.79 |
2021 | $22.38 billion | $4.92 |
2020 | $16.68 billion | $3.84 |
2019 | $12.41 billion | $2.91 |
2018 | $9.71 billion | $2.18 |
Table 2: Nvidia's Stock Performance
Year | Stock Price | % Change |
---|---|---|
2022 | $275.00 | 34% |
2021 | $205.00 | 20% |
2020 | $170.00 | 30% |
2019 | $130.00 | 25% |
2018 | $100.00 | 20% |
Table 3: Nvidia's Competitors
Company | Market Cap |
---|---|
Advanced Micro Devices (AMD) | $173.41 billion |
Intel Corporation | $119.49 billion |
Table 4: Nvidia's Risk Factors
Risk Factor | Description |
---|---|
Competition | Nvidia faces competition from other companies, including Advanced Micro Devices (AMD) and Intel Corporation. |
Economic downturn | An economic downturn could reduce demand for Nvidia's products. |
Technological disruption | Technological disruption could render Nvidia's products obsolete. |
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