About NVDIA
NVIDIA, founded in 1993 by Jensen Huang, Chris Malachowsky, and Curtis Priem, is a trailblazer in the tech world, renowned for its graphics processing units (GPUs) and advanced computing solutions. The company revolutionized gaming with its high-performance GPUs, delivering stunning, realistic graphics and elevating the gaming experience.
Beyond gaming, NVIDIA’s technology is crucial in artificial intelligence (AI) and machine learning. Their GPUs provide the immense computational power necessary for training complex AI models. NVIDIA’s CUDA platform allows developers to harness GPU acceleration for various applications, from scientific research to financial modeling.
NVIDIA’s impact extends to autonomous vehicles, healthcare, and robotics, driving innovation in these fields. Recent strategic acquisitions, like Mellanox Technologies and ARM Holdings, have strengthened its position in the data center and semiconductor sectors. With a relentless focus on innovation, NVIDIA continues to shape the future of technology, making significant strides in AI, data centers, and beyond.
What is positive ?
Strong Market Presence: Dominant in data centers, gaming, and leading in innovation.
Impressive Revenue Growth: Achieved over 60% CAGR since 2021.
High Margins: Gross margin of 75% and net income margin of 50%.
Robust Financials: Holds $31 billion in cash and cash equivalents with $9.8 billion in debt.
NVIDIA Stock Prediction 2025,2030,2035
***All revenue, Net income and market cap are in thousands***| Year | Projected Revenue (K) | Projected Net Income(K) | Projected EPS | Projected Stock price | Projected Market Cap (K) |
|---|---|---|---|---|---|
| 2023 | $60,922,000 | $29,760,000 | 1.19 | ||
| 2024 | $120,000,000 | $67,836,800 | 2.72 | $95 | $2,374,288,000 |
| 2025 | $167,000,000 | $93,275,600 | 3.74 | $131 | $3,264,646,000 |
| 2026 | $200,400,000 | $100,200,000 | 4.02 | $141 | $3,507,000,000 |
| 2027 | $240,480,000 | $120,240,000 | 4.82 | $169 | $4,208,400,000 |
| 2028 | $288,576,000 | $144,288,000 | 5.79 | $202 | $5,050,080,000 |
| 2029 | $331,862,400 | $165,931,200 | 6.65 | $233 | $5,807,592,000 |
| 2030 | $381,641,760 | $190,820,880 | 7.65 | $268 | $6,678,730,800 |
| 2031 | $438,888,024 | $219,444,012 | 8.80 | $308 | $7,680,540,420 |
| 2032 | $504,721,228 | $252,360,614 | 10.12 | $354 | $8,832,621,483 |
| 2033 | $580,429,412 | $290,214,706 | 11.64 | $407 | $10,157,514,705 |
| 2034 | $667,493,824 | $333,746,912 | 13.38 | $468 | $11,681,141,911 |
| 2035 | $767,617,897 | $383,808,949 | 15.39 | $539 | $13,433,313,198 |
Conclusion - Our thoughts
NVIDIA is a dominant player in data centers, gaming, and a leader in innovation. While its recent growth has been extraordinary, future growth may not continue at the same pace.
However, it is expected to outperform sector growth, likely ranging between 15-20% over the next five years and 10-15% thereafter.
There is a high possibility of a price-to-earnings (PE) ratio rerating from the current 60 to around 30-35 in the coming years.
The stock is strong, but from a valuation perspective, it appears expensive.
