Research archive for NVDA

On Wednesday night, Nvidia released their quarterly results - probably the most anticipated of any company on the S&P 500. There were videos on social media of people gathering at bars in Manhattan, but instead of watching their favourite sports team, they were watching Bloomberg to hear about how much the company had grown. The stock closed at $125.61 on Tuesday, but is down about 5% since then at $119.37, which is weird because the company smashed expectations.

A Sankey diagram is a visualisation used to depict a flow from one set of values to another. They are often used to depict the financial results of large companies. By showing revenues on the left, costs in red falling out the bottom and resulting profits in green on the right, you can quite easily see how a business is doing.

The surge in the Nvidia share price has been incredible to watch. They make the best chips around, and customers can't get enough of them, which allows Nvidia to charge massive profit margins. I recently saw two articles highlighting the lengths that customers will go to get their hands on Nvidia chips.

Some people are worrying about Nvidia's high share price, but not me. I spoke to two long-standing Vestact clients yesterday and both were wondering if they should "take some profits". I persuaded them not to.

Naturally, people are asking when the competition will jump in and start grabbing some of that pie? That question is tough to answer with certainty, but at this stage, it looks like it will be very difficult for competitors to gain market share or even for the likes of Amazon and Microsoft to build competitive chips in-house.

Investors eagerly awaited Nvidia's earnings report this week. Everyone was on tenterhooks, wondering whether the chip giant could maintain its remarkable momentum from 2023. Nvidia delivered! Its fourth-quarter results underscored the relentless demand for artificial intelligence (AI) systems, driving the chip giant to keep pace with skyrocketing needs.

Successful companies generate new sales. We like our portfolio investments to have accelerating top-line growth, with year after year of booming revenues.

Nvidia has announced new products aimed at advancing the personal computer industry. The company unveiled three new desktop graphics chips with extra components, helping users leverage AI capabilities on their personal machines without relying on remote services.

Thanks to its fabulous recent returns, Nvidia has become a big holding in many Vestact client accounts. But how much do you know about the CEO and co-founder Jensen Huang?

Last night, Nvidia posted very good quarterly numbers, recording better-than-expected revenue, profit and forward guidance. The share price traded down 2% in after-hours trade, which is not a bad outcome after an epic rally in recent months.

Byron just covered Nvidia's current results, but I'd like to look at their history since we started buying them for a few brave clients in 2015. Their main business at that time was souped up graphics processors (GPUs) in expensive desktop computer gaming rigs. It became clear later that GPUs were very good at processing large amounts of data and three growing industries became reliant on Nvidia's chips; self-driving cars, data centres and emerging machine learning applications.

The whole market was holding its breath for Nvidia's results out on Wednesday night. Artificial Intelligence (AI) has been a key driver of the recent market rally and Nvidia is the sector's "poster child". I am happy to report that the numbers smashed every expectation by a country mile.

Nvidia has a brilliant strategy to ensure that its chips are in high demand for years to come. The chip maker is investing in early-stage companies which operate in industries that will require large amounts of GPUs for growth. Having Nvidia as a shareholder increases the odds that these companies will continue to spend millions on new Nvidia GPUs.

Nvidia is the hottest company on Wall Street right now. Its shares are up over 198% year-to-date, a rally that gives the company a market capitalisation over $1 trillion. This is a title only four other American companies currently claim.

We added Nvidia to our Vestact-recommended stock portfolio in New York in March 2017. We rated their technological prowess, their management team under CEO Jensen Huang, and their dominant position in chips for gaming and graphics computers.