Is NVIDIA Stock a Good Investment?

NVIDIA Investment Advice

  NVDA
To provide specific investment advice or recommendations on NVIDIA stock, we recommend investors consider the following general factors when evaluating NVIDIA. This will help you to make an informed decision on whether to include NVIDIA in one of your diversified portfolios:
  • Examine NVIDIA's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research NVIDIA's leadership team and their track record. Good management can help NVIDIA navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact NVIDIA's business and its evolving consumer preferences.
  • Compare NVIDIA's performance and market position to its competitors. Analyze how NVIDIA is positioned in terms of product offerings, innovation, and market share.
  • Check if NVIDIA pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about NVIDIA's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in NVIDIA stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if NVIDIA is a good investment.
 
Sell
 
Buy
Strong Hold
Macroaxis provides trade recommendations on NVIDIA to complement and cross-verify current analyst consensus on NVIDIA. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure NVIDIA is not overpriced, please verify all NVIDIA fundamentals, including its shares owned by institutions, gross profit, debt to equity, as well as the relationship between the price to book and cash and equivalents . Given that NVIDIA has a price to earning of 41.94 X, we recommend you to check NVIDIA market performance and probability of bankruptcy to ensure the company can sustain itself next year given your last-minute risk tolerance and investing horizon.

Market Performance

SolidDetails

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Almost mirrors the marketDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails

Examine NVIDIA Stock

Researching NVIDIA's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 68.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.15. NVIDIA last dividend was issued on the 11th of June 2024. The entity had 10:1 split on the 10th of June 2024.
To determine if NVIDIA is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding NVIDIA's research are outlined below:
NVIDIA appears to be risky and price may revert if volatility continues
NVIDIA has a poor financial position based on the latest SEC disclosures
About 68.0% of the company shares are owned by institutional investors
On 4th of June 2024 NVIDIA paid $ 0.04 per share dividend to its current shareholders
Latest headline from finance.yahoo.com: Chipotle Mexican Grill, Inc. Upgraded by TD Cowen

NVIDIA Quarterly Liabilities And Stockholders Equity

77.07 Billion

NVIDIA uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in NVIDIA. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to NVIDIA's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
21st of February 2024
Upcoming Quarterly Report
View
22nd of May 2024
Next Financial Report
View
31st of January 2024
Next Fiscal Quarter End
View
21st of February 2024
Next Fiscal Year End
View
31st of October 2023
Last Quarter Report
View
31st of January 2023
Last Financial Announcement
View
Earnings surprises can significantly impact NVIDIA's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises NVIDIA's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2016-08-11
2016-07-310.0090.010.00111 
2016-02-17
2016-01-310.0080.0090.00112 
2015-08-06
2015-07-310.0030.0040.00133 
2014-11-06
2014-10-310.0070.0080.00114 
2014-08-07
2014-07-310.0050.0060.00120 
2014-05-06
2014-04-300.0040.0050.00125 
2014-02-12
2014-01-310.0050.0060.00120 
2013-08-08
2013-07-310.0030.0040.00133 

NVIDIA Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. NVIDIA target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. NVIDIA's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
   55  Strong Buy
Most NVIDIA analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand NVIDIA stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of NVIDIA, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

NVIDIA Target Price Projection

NVIDIA's current and average target prices are 131.88 and 906.95, respectively. The current price of NVIDIA is the price at which NVIDIA is currently trading. On the other hand, NVIDIA's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

NVIDIA Market Quote on 16th of June 2024

Low Price128.32Odds
High Price132.84Odds

131.88

Target Price

Analyst Consensus On NVIDIA Target Price

Low Estimate825.32Odds
High Estimate1006.71Odds

906.95

Historical Lowest Forecast  825.32 Target Price  906.95 Highest Forecast  1006.71
Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on NVIDIA and the information provided on this page.

NVIDIA Analyst Ratings

NVIDIA's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about NVIDIA stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of NVIDIA's financials, market performance, and future outlook by experienced professionals. NVIDIA's historical ratings below, therefore, can serve as a valuable tool for investors.

Know NVIDIA's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as NVIDIA is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading NVIDIA backward and forwards among themselves. NVIDIA's institutional investor refers to the entity that pools money to purchase NVIDIA's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Bank Of New York Mellon Corp2024-03-31
19.1 M
Bank Of America Corp2024-03-31
18.9 M
Nuveen Asset Management, Llc2024-03-31
17.1 M
Goldman Sachs Group Inc2023-12-31
14.3 M
Ubs Asset Mgmt Americas Inc2024-03-31
14.1 M
Charles Schwab Investment Management Inc2024-03-31
14 M
Gqg Partners Llc2023-12-31
13.9 M
Alliancebernstein L.p.2024-03-31
12.6 M
Wellington Management Company Llp2024-03-31
12.5 M
Vanguard Group Inc2024-03-31
213.3 M
Blackrock Inc2024-03-31
182.2 M
Note, although NVIDIA's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

NVIDIA's market capitalization trends

The company currently falls under 'Mega-Cap' category with a current market capitalization of 3.24 T.

Market Cap

241.28 Million

NVIDIA's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.49  0.20 
Return On Capital Employed 0.60  0.18 
Return On Assets 0.45  0.15 
Return On Equity 0.69  0.26 
The company has Profit Margin (PM) of 0.53 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.65 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.65.
Determining NVIDIA's profitability involves analyzing its financial statements and using various financial metrics to determine if NVIDIA is a good buy. For example, gross profit margin measures NVIDIA's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of NVIDIA's profitability and make more informed investment decisions.

NVIDIA's Earnings Breakdown by Geography

The data published in NVIDIA's official financial statements typically reflect NVIDIA's business processes, product offerings, services, and other fundamental events. However, there are additional fundamental indicators that are easier to understand and visualize along the underlying realities that are driving NVIDIA's quantitative information. For example, before you start analyzing numbers published by NVIDIA accountants, it’s essential to understand NVIDIA's liquidity, profitability, and earnings quality within the context of the Semiconductors & Semiconductor Equipment space in which it operates.
Please note, the presentation of NVIDIA's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, NVIDIA's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of NVIDIA's management manipulating its earnings.

Evaluate NVIDIA's management efficiency

NVIDIA has return on total asset (ROA) of 0.491 % which means that it generated a profit of $0.491 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 1.1566 %, meaning that it created $1.1566 on every $100 dollars invested by stockholders. NVIDIA's management efficiency ratios could be used to measure how well NVIDIA manages its routine affairs as well as how well it operates its assets and liabilities. As of June 16, 2024, Return On Tangible Assets is expected to decline to 0.20. In addition to that, Return On Capital Employed is expected to decline to 0.18. At present, NVIDIA's Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 22.5 B, whereas Return On Tangible Assets are forecasted to decline to 0.20.
Last ReportedProjected for Next Year
Book Value Per Share 1.74  0.68 
Tangible Book Value Per Share 1.52  0.40 
Enterprise Value Over EBITDA 44.84  58.60 
Price Book Value Ratio 35.89  19.34 
Enterprise Value Multiple 44.84  58.60 
Price Fair Value 35.89  19.34 
Enterprise Value216.3 M205.5 M
The analysis of NVIDIA's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze NVIDIA's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of NVIDIA Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield
0.0003
Forward Dividend Yield
0.0003
Forward Dividend Rate
0.04
Beta
1.694

Basic technical analysis of NVIDIA Stock

As of the 16th of June 2024, NVIDIA secures the risk adjusted performance of 0.2027, and Mean Deviation of 2.9. In respect to fundamental indicators, the technical analysis model lets you check practical technical drivers of NVIDIA, as well as the relationship between them.

NVIDIA's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific NVIDIA insiders, such as employees or executives, is commonly permitted as long as it does not rely on NVIDIA's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases NVIDIA insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

NVIDIA's Outstanding Corporate Bonds

NVIDIA issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. NVIDIA uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most NVIDIA bonds can be classified according to their maturity, which is the date when NVIDIA has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand NVIDIA's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing NVIDIA's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider NVIDIA's intraday indicators

NVIDIA intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of NVIDIA stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

NVIDIA Corporate Filings

F4
13th of June 2024
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
8K
7th of June 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
23rd of May 2024
Other Reports
ViewVerify
15th of May 2024
Other Reports
ViewVerify
NVIDIA time-series forecasting models is one of many NVIDIA's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary NVIDIA's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

NVIDIA Stock media impact

Far too much social signal, news, headlines, and media speculation about NVIDIA that are available to investors today. That information is available publicly through NVIDIA media outlets and privately through word of mouth or via NVIDIA internal channels. However, regardless of the origin, that massive amount of NVIDIA data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of NVIDIA news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of NVIDIA relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to NVIDIA's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive NVIDIA alpha.

NVIDIA Historical Investor Sentiment

Investor biases related to NVIDIA's public news can be used to forecast risks associated with an investment in NVIDIA. The trend in average sentiment can be used to explain how an investor holding NVIDIA can time the market purely based on public headlines and social activities around NVIDIA. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
NVIDIA's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for NVIDIA and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average NVIDIA news discussions. The higher the estimate score, the more favorable the investor's outlook on NVIDIA.

NVIDIA Corporate Management

Ajay PuriExecutive VP of Worldwide Field OperationsProfile
Robert SherbinVice CommunicationsProfile
Prof DallyChief ResearchProfile
Chris MalachowskyCoFounderProfile

Additional Information and Resources on Investing in NVIDIA Stock

When determining whether NVIDIA offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of NVIDIA's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Nvidia Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nvidia Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NVIDIA. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as various price indices.
For information on how to trade NVIDIA Stock refer to our How to Trade NVIDIA Stock guide.
You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NVIDIA. If investors know NVIDIA will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about NVIDIA listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
6.5
Dividend Share
0.016
Earnings Share
1.71
Revenue Per Share
3.234
Quarterly Revenue Growth
2.621
The market value of NVIDIA is measured differently than its book value, which is the value of NVIDIA that is recorded on the company's balance sheet. Investors also form their own opinion of NVIDIA's value that differs from its market value or its book value, called intrinsic value, which is NVIDIA's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NVIDIA's market value can be influenced by many factors that don't directly affect NVIDIA's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between NVIDIA's value and its price, as these two are different measures arrived at by various means. Investors typically determine if NVIDIA is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NVIDIA's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.