Is Nvidia a trillion dollar company?
Chipmaker Nvidia is now worth nearly as much as Amazon. America's largest semiconductor company has vaulted past the $1 trillion market capitalization mark, a milestone reached by just a handful of companies including Apple, Amazon, and Microsoft.
How Nvidia became a $1 trillion company. Nvidia was founded on April 5, 1993 and went public in 1999, with shares trading at $0.82. In 2016, Nvidia's market cap began its upward trajectory with the surge in high-end graphics cards sales driven by gaming, AI, virtual reality and the automotive sector.
The company crossed the mark in intraday trading on May 30, but the stock closed that day below the $404.858 price needed to have a $1 trillion market cap. The stock ended Tuesday at $410.22, rising 3.9% on the day and giving Nvidia a valuation of roughly $1.01 trillion.
This puts Nvidia in the special trillion-dollar club with other US companies including Apple, Alphabet (Google), Microsoft, and Amazon. Although Nvidia's AI technology has raised a lot of attention, its sustainability efforts have also been scrutinized.
Nvidia is now the sixth public company in the world valued at over $1 trillion, joining Apple, Saudi Aramco, Microsoft, Alphabet and Amazon; the only other companies to ever cross the threshold are Tesla and Meta, which are each valued at less than $700 billion today, and Chinese oil giant PetroChina.
Nvidia. The third surprising stock you'd never have guessed Warren Buffett owns is graphics card and semiconductor solutions specialist Nvidia (NVDA 1.34%). New England Asset Management's third-quarter 13F showed it held 3,050 shares of Nvidia.
In conclusion, the stock of NVIDIA Corp (NASDAQ:NVDA) appears to be significantly overvalued. Despite the company's strong financial condition and profitability, its growth ranks worse than 53.12% of companies in the Semiconductors industry.
How Much Debt Does NVIDIA Carry? As you can see below, NVIDIA had US$11.0b of debt, at April 2023, which is about the same as the year before. You can click the chart for greater detail.
Apple's market cap is 4 times higher than Nvidia's right now. Apple still has attractive growth prospects that could push its market cap even higher by 2030. Nvidia would have to deliver a huge return to surpass Apple's projected market cap.
The top individual shareholders of Nvidia are Jen-Hsun ("Jensen") Huang, Colette M. Kress, and Mark A. Stevens, and the top institutional shareholders are Vanguard Group Inc., BlackRock Inc. (BLK), and FMR LLC.
Can NVDA reach $1000?
Yes, Our Analyst Predicted that Nvidia Stock will cross $1000 in the year 2028.
Analysts expect Nvidia earnings per share to rebound 139% in fiscal 2024, on a 62% sales gain. Last year, Nvidia earnings fell 25%. Its next quarterly report is expected on Aug. 23. Out of 50 analysts covering NVDA stock, 43 rate it a buy.
NVIDIA is forecasted to grow earnings and revenue by 31.7% and 25.3% per annum respectively. EPS is expected to grow by 31.5%. Return on equity is forecast to be 56.3% in 3 years.
Artificial intelligence (AI) has turned out to be a big catalyst for Nvidia (NVDA 1.85%) stock so far in 2023, and that's not surprising given how the proliferation of this technology has boosted the demand for the company's graphics cards.
Its biggest customers—cloud providers including Microsoft, Google and Amazon—are making their own AI chips to reduce their reliance on Nvidia.
As of August 2023 NVIDIA has a market cap of $1.052 Trillion. This makes NVIDIA the world's 6th most valuable company by market cap according to our data.
Buffett would likely agree with Cramer that valuing Nvidia is "more of an art than many would like." It's almost certainly more of an art than he'd like. Buffett also wouldn't want to depend on Nvidia's management being right about the future demand for its chips.
Nancy Pelosi (D-Calif.) and her financier husband intentionally sold 25,000 shares of Nvidia at a loss last July to avoid public scrutiny, leaving behind millions of dollars in unrealized profit had they held onto the chipmaker stock amid its meteoric rise this year.
| Year | Price in the middle of the year | Price at the end of the year |
|---|---|---|
| 2025 | $722.61 | $792.19 |
| 2026 | $861.77 | $944.75 |
| 2027 | $1027.73 | $1126.69 |
| 2028 | $1225.65 | $1343.67 |
AMD might be behind Nvidia in AI, but its market cap of $183 billion compared to Nvidia's $1 trillion indicates it could have more room to rise in the short term and be a less-risky investment. Alongside a cheaper-priced stock, AMD is the better and more reliable buy right now.
Is Nvidia a buy sell or hold?
Nvidia's analyst rating consensus is a Strong Buy. This is based on the ratings of 34 Wall Streets Analysts.
NVIDIA generated $4.37 billion in net profits in 2023, compared to over $9.7 billion in profits in 2022, and $4.3 billion in 2021. In 2023, of 26,196 employees, 19,532 employees were engaged in R&D (74.5% of the total workforce). In 2022, 16,242 NVIDIA employees (72% of the workforce) were involved in R&D.
As of 2023-08-10, the Intrinsic Value of NVIDIA Corp (NVDA) is 39.70 USD. This value is based on the model Discounted Cash Flows (Growth Exit 5Y). With the current market price of 423.88 USD, the upside of NVIDIA Corp is -90.6%. The range of the Intrinsic Value is 28.5 - 66.33 USD.
As a tech giant, the Nvidia business model involves GPU sales. This graphics company gets most of its revenue from selling these specialized chips, which serve many industries, including the gaming, robotics, automotive, and professional visualization industries.
Nvidia, whose $930 billion market valuation is the sixth-largest in the world, would overtake Amazon as the fourth most valuable company in the world should its stock hit $600, falling just short of Alphabet with a $1.5 trillion valuation.
The 42 analysts offering 12-month price forecasts for NVIDIA Corp have a median target of 492.50, with a high estimate of 767.00 and a low estimate of 370.00. The median estimate represents a +10.21% increase from the last price of 446.86.
The chart above suggests that Nvidia's revenue in fiscal 2026 could hit $65 billion. That translates into a CAGR of almost 35% over three years. Assuming Nvidia's revenue increases at 30% a year in fiscal years 2027 and 2028, its revenue after five years could hit $110 billion.
Nvidia Corp. (NVDA) popularized the graphics processing unit (GPU) and gets the vast majority of its revenue from these specialized chips. It's rapidly expanding into fields such as artificial intelligence (AI).
Unsurprisingly, this technology isn't cheap; at one online retailer, the H100 lists for $30,000 (€28,000). Nvidia doesn't fabricate these complex GPU chips itself, a task that would require enormous investments in new factories. Instead, it relies on Asian chip foundries such as Taiwan Semiconductor Manufacturing Co.
NVIDIA's GPUs are used in a wide range of applications, including gaming, artificial intelligence, and data center computing. One of the primary ways NVIDIA makes money is through the sale of its GPUs. NVIDIA's GPUs are used in a variety of devices, including personal computers, gaming consoles, and mobile phones.
Will Nvidia reach $500?
Bottom Line. Based on my analysis, Nvidia's stock has room to rise further thanks to AI-related growth opportunities, and it won't be unreasonable for the company's share price to hit the $500 mark. Therefore, I don't see any reasons to change my bullish view and Buy rating for Nvidia Corporation stock.
I've also gone on record to say that Nvidia will surpass the valuation of Apple. That particular analysis compared the impact that AI will have to mobile, with AI adding $15 trillion to GDP compared to mobile's $4.4 trillion. Mobile brought us three FAANGs: Apple, Google and Facebook.
Nvidia stock price prediction 2040
Our data suggests that the stock will be priced at $2830 by mid 2040 and increase to approximately $2900 by years end.
Of the 35 recommendations that derive the current ABR, 29 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 82.9% and 8.6% of all recommendations. The ABR suggests buying Nvidia, but making an investment decision solely on the basis of this information might not be a good idea.
| Average Recommendation | Buy |
|---|---|
| Average Target Price | 515.38 |
| Number Of Ratings | 50 |
| FY Report Date | 1/2024 |
| Last Quarter's Earnings | 1.09 |
NVIDIA's competitors and similar companies include Cisco, Intel, Qualcomm, AMD, Broadcom, Hewlett Packard Enterprise and Renesas Electronics.
In other words, Nvidia's earnings could multiply by nearly 18 times over the next decade based on its fiscal 2023 bottom line of $3.34 per share. That would be a much faster increase than during the past decade.
| Year | Prediction | Change |
|---|---|---|
| 2025 | $ 956.33 | 110.76% |
| 2026 | $ 1,388.34 | 205.96% |
| 2027 | $ 2,015.51 | 344.18% |
| 2028 | $ 2,926.00 | 544.83% |
Nvidia stock price stood at $454.17
According to the latest long-term forecast, Nvidia price will hit $700 by the end of 2023 and then $1300 by the end of 2024. Nvidia will rise to $1800 within the year of 2025, $2000 in 2027, $2500 in 2028, $3000 in 2029, $3500 in 2031 and $4000 in 2034.
Last year, Nvidia shares cratered as the company slashed at forecasts as a two-year-long COVID pandemic-triggered chip shortage quickly flipped to an uneven glut. Both Nvidia and AMD have launched new AI chips this year, Nvidia in March and AMD earlier in the month.
Why is Nvidia a strong buy?
The first half of 2023 has been terrific for investors in Nvidia (NVDA -1.66%) as shares of the chipmaker have shot up 195%, driven largely by the company's artificial-intelligence powered growth that has helped it overcome the weakness in the personal computer market.
The elite club of US companies worth more than $1 trillion got a new member on Tuesday - at least for few hours. Chip maker Nvidia briefly joined the ranks, as its share price shot up more than 5% before retreating.
Tesla has worked with Nvidia for years, and the electric automaker already runs a Nvidia-powered supercomputer. But because of the boom in AI, demand for Nvidia's chips is pressuring customers like Tesla. To address this, Musk says Tesla is building its own supercomputer, called Dojo, that runs on custom silicon.
AMD holds up well
Nvidia has something that AMD doesn't — superior ray tracing and DLSS. DLSS 3, to be more specific, generates entire frames instead of pixels, and it's only available on RTX 40-series cards.
Reduce carbon footprint of intensive AI workloads
In addition to operating the cleanest cloud infrastructure in the industry, Google partners with NVIDIA to offer GPUs that can help increase the energy efficiency of computationally intensive workloads like AI.
The main competitors of NVIDIA include Broadcom (AVGO), Taiwan Semiconductor Manufacturing (TSM), Meta Platforms (META), Alphabet (GOOGL), Alphabet (GOOG), Oracle (ORCL), Microsoft (MSFT), Apple (AAPL), Texas Instruments (TXN), and Intel (INTC). These companies are all part of the "computer and technology" sector.
Recent reports show that Google has designed chips much better than Nvidia's GPUs. Alphabet (GOOGL 5.78%) (GOOG 5.59%) recently released a report showcasing the strength of its TPU v4, a supercomputer made using Google's accelerators.
China is a key market for Nvidia. Revenues from mainland China and Hong Kong accounted for 22% of the company's revenue last year, according to its financial statements. On Wednesday, shares of Nvidia slumped as much as 3.2%, before recouping some of the losses. It ended down 1.8%.
Nvidia's (NASDAQ: NVDA) stock price has skyrocketed due to the demand for its AI chips, and many investors are questioning its valuation. Check out the short video to learn what semiconductor investors Jose Najarro and Billy Duberstein had to say.
Namely, they think Nvidia has a chance to be the largest beneficiary of a technological revolution: artificial intelligence. Nvidia is the dominant player in graphics processing units — an essential component for running AI in the cloud.
What makes Nvidia the most money?
As a tech giant, the Nvidia business model involves GPU sales. This graphics company gets most of its revenue from selling these specialized chips, which serve many industries, including the gaming, robotics, automotive, and professional visualization industries.
Nvidia, an artificial intelligence and chip company headquartered in California, hit a $1 trillion market value on Tuesday, making it the first chip company to do so, according to Reuters. The company's stock rose 4.4% on Tuesday morning and about 25% over the past week. The reason? The demand for AI.
Nvidia is expected to grow at a faster pace than Apple, which is not surprising if you take a closer look at its end-market opportunities. Nvidia is likely to get close to Apple's market cap over the next three years. The chipmaker could eventually overtake the smartphone giant in the long run thanks to AI.
Assuming Nvidia's revenue increases at 30% a year in fiscal years 2027 and 2028, its revenue after five years could hit $110 billion. That would be more than four times the revenue Nvidia generated in fiscal 2023.
SAN FRANCISCO - You may not have heard about Nvidia, but thanks to the artificial intelligence boom it's now one of the most valuable companies in history. The company has for years made the computer chips that can run graphics-heavy video games.
Its biggest customers—cloud providers including Microsoft, Google and Amazon—are making their own AI chips to reduce their reliance on Nvidia.
The main competitors of NVIDIA include Broadcom (AVGO), Taiwan Semiconductor Manufacturing (TSM), Meta Platforms (META), Alphabet (GOOGL), Alphabet (GOOG), Oracle (ORCL), Microsoft (MSFT), Apple (AAPL), Texas Instruments (TXN), and Intel (INTC). These companies are all part of the "computer and technology" sector.
How Much Debt Does NVIDIA Carry? As you can see below, NVIDIA had US$11.0b of debt, at April 2023, which is about the same as the year before.
The bullish thesis for Nvidia is easy to understand. Nvidia's top-tier GPUs are used to accelerate the world's most complex machine learning and AI tasks, so their sales will continue to rise as those markets evolve and expand.
