Technology Stocks

How to View the Shake and Bake in NVIDIA Corporation (NASDAQ:NVDA)

NVIDIA Corporation (NASDAQ:NVDA) is always an interesting stock given its extensive evolution into the AI sector. Shares are often believed to be overvalued, but the speculative potential of a market-dominant position in AI amplifies the upper range of estimates, allowing the stock to maintain its lofty premium.

The company bills itself as an organization that operates as a visual computing company worldwide. But, as we have noted, it’s so much more.

NVIDIA Corporation (NASDAQ:NVDA) operates through two segments, GPU and Tegra Processor. The GPU segment offers processors, which include GeForce for PC gaming and mainstream PCs; GeForce NOW for cloud-based game-streaming service; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla for AI utilizing deep learning, accelerated computing, and general purpose computing; GRID provides power of NVIDIA graphics through the cloud and datacenters; DGX for AI scientists, researchers, and developers; and cryptocurrency-specific graphics processing units.

The Tegra Processor segment provides processors designed to enable branded platforms – DRIVE and SHIELD; DRIVE automotive computers and software stacks, which offer self-driving capabilities; SHIELD devices and services designed for mobile-cloud in home entertainment, AI, and gaming applications; and Jetson TX 2, an AI computing platform for embedded use.

The company’s products are used in gaming, professional visualization, datacenter, and automotive markets. NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, Internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants.

NVIDIA Corporation was founded in 1993 and is headquartered in Santa Clara, California.

Currently trading at a market capitalization of $164.07B, NVDA has a significant war chest ($7943M) of cash on the books, which compares with about $1462M in total current liabilities.

One should also note that debt has been growing over recent quarters. NVDA is pulling in trailing 12-month revenues of $11877M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 40%.

You can bet we will update this one again as new information comes into view.

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