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Analysis by Nvidia (#NVDA)

Analysis by Nvidia (#NVDA)

24 February 2021

Nvidia is an American technology company that develops GPUs and systems-on-a-chip. The company’s developments have spread to the video games, professional visualization, high-performance computing and automotive industries, where Nvidia’s on-board computers are used as the basis for self-driving cars. As of Q4 2018, it was the world’s largest manufacturer of PC-compatible discrete graphics with a market share of 81.2%.

Despite a fairly strong market position and brand strength, the company has some serious competitors such as Intel, AMD, Qualcomm and Broadcom.

Q3 revenue: $ 4.7B (+ 22% YoY)

Q3 EBITDA: $ 1.4B (+ 115% YoY)

Q3 net income: $ 1.3B (+ 115% YoY)

Earnings per share last quarter: $ 2.91, above $ 2.57 forecast

Thanks to its part of the video game business, the company has significantly improved its financial performance during the crisis.

Geographic distribution of revenue:

Taiwan – 27.71%

China – 25.01%

Other Asia Pacific – 24.59%

Europe – 9.09%

United States – 8.12%

Other Americas – 5.49%

Current Quarter EPS Forecast: $ 3.88

The company is not one of those who pleases investors with high dividends. Despite the fact that the company pays dividends on a quarterly basis and increases them, the current yield on the company’s shares remains less than half a percent. However, the company is actively developing, this is evident from the rapid growth of financial indicators.

Thus, #NVDA is a growing company that has the potential to become a market leader if it withstands the competition. Despite the skyrocketing financial performance in three quarters of 2020, the company’s stock is still overvalued.

The stock has been doing more than well lately. The trend is strictly up. The chart shows the levels at which you can try to go long. However, with the current hype for mining, and therefore for video cards, the correction may not be as deep.

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    24 February 2021
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