Is NVIDIA Stock a Good Investment?

NVIDIA Investment Advice

NVDA

To provide specific investment advice or recommendations on NVIDIA stock, we recommend investors consider the following general factors when evaluating NVIDIA. This will help you to make an informed decision on whether to include NVIDIA in one of your diversified portfolios:

Examine NVIDIA's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research NVIDIA's leadership team and their track record. Good management can help NVIDIA navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact NVIDIA's business and its evolving consumer preferences.
Compare NVIDIA's performance and market position to its competitors. Analyze how NVIDIA is positioned in terms of product offerings, innovation, and market share.
Check if NVIDIA pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about NVIDIA's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in NVIDIA stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if NVIDIA is a good investment.

Sell

Buy

Strong Buy

Macroaxis provides trade recommendations on NVIDIA to complement and cross-verify current analyst consensus on NVIDIA. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure NVIDIA is not overpriced, please verify all NVIDIA fundamentals, including its shares owned by institutions, gross profit, debt to equity, as well as the relationship between the price to book and cash and equivalents . Given that NVIDIA has a price to earning of 41.94 X, we recommend you to check NVIDIA market performance and probability of bankruptcy to ensure the company can sustain itself next year given your last-minute risk tolerance and investing horizon.

Market Performance	OK	Details
Volatility	Very steady	Details
Hype Condition	Under hyped	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Low	Details
Economic Sensitivity	Actively responds to the market	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Strong Buy	Details
Financial Strenth (F Score)	Poor	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Possible Manipulator	Details

Examine NVIDIA Stock

Researching NVIDIA's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 68.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.07. NVIDIA recorded earning per share (EPS) of 11.93. The entity last dividend was issued on the 5th of March 2024. The firm had 4:1 split on the 20th of July 2021.

To determine if NVIDIA is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding NVIDIA's research are outlined below:

	NVIDIA had very high historical volatility over the last 90 days
	NVIDIA has a poor financial position based on the latest SEC disclosures
	About 68.0% of the company shares are owned by institutional investors
	On 27th of March 2024 NVIDIA paid $ 0.04 per share dividend to its current shareholders
	Latest headline from finance.yahoo.com: Billionaire fund manager bets big on Google-parent Alphabet

NVIDIA Quarterly Liabilities And Stockholders Equity

65.73 Billion

NVIDIA uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in NVIDIA. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to NVIDIA's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	21st of February 2024 Upcoming Quarterly Report	View
	22nd of May 2024 Next Financial Report	View
	31st of January 2024 Next Fiscal Quarter End	View
	21st of February 2024 Next Fiscal Year End	View
	31st of October 2023 Last Quarter Report	View
	31st of January 2023 Last Financial Announcement	View

Earnings surprises can significantly impact NVIDIA's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises NVIDIA's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2016-08-11	2016-07-31	0.09	0.1	0.01	11
2016-02-17	2016-01-31	0.08	0.09	0.01	12
2015-08-06	2015-07-31	0.03	0.04	0.01	33
2014-11-06	2014-10-31	0.07	0.08	0.01	14
2014-08-07	2014-07-31	0.05	0.06	0.01	20
2014-05-06	2014-04-30	0.04	0.05	0.01	25
2014-02-12	2014-01-31	0.05	0.06	0.01	20
2013-08-08	2013-07-31	0.03	0.04	0.01	33

Know NVIDIA's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as NVIDIA is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading NVIDIA backward and forwards among themselves. NVIDIA's institutional investor refers to the entity that pools money to purchase NVIDIA's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Legal & General Group Plc	2023-12-31	20.8 M
Bank Of New York Mellon Corp	2023-12-31	20.4 M
Bank Of America Corp	2023-12-31	19.8 M
Nuveen Asset Management, Llc	2023-12-31	17.4 M
Jennison Associates Llc	2023-12-31	14.3 M
Gqg Partners Llc	2023-12-31	13.9 M
Alliancebernstein L.p.	2023-12-31	13.8 M
Baillie Gifford & Co Limited.	2023-12-31	13.8 M
Ubs Asset Mgmt Americas Inc	2023-12-31	13.8 M
Vanguard Group Inc	2023-12-31	204.5 M
Blackrock Inc	2023-12-31	179.7 M

Note, although NVIDIA's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

NVIDIA's market capitalization trends

The company currently falls under 'Mega-Cap' category with a current market capitalization of 2.15 T. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate NVIDIA's market, we take the total number of its shares issued and multiply it by NVIDIA's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

214.82 Million

NVIDIA's profitablity analysis

NVIDIA's profitability indicators refer to fundamental financial ratios that showcase NVIDIA's ability to generate income relative to its revenue or operating costs. If, let's say, NVIDIA is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, NVIDIA's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of NVIDIA's profitability requires more research than a typical breakdown of NVIDIA's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.49	0.20
Return On Capital Employed	0.60	0.18
Return On Assets	0.45	0.15
Return On Equity	0.69	0.26

The company has Profit Margin (PM) of 0.49 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.62 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.62.

Determining NVIDIA's profitability involves analyzing its financial statements and using various financial metrics to determine if NVIDIA is a good buy. For example, gross profit margin measures NVIDIA's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of NVIDIA's profitability and make more informed investment decisions.

The data published in NVIDIA's official financial statements usually reflect NVIDIA's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of NVIDIA. For example, before you start analyzing numbers published by NVIDIA accountants, it's critical to develop an understanding of what NVIDIA's liquidity, profitability, and earnings quality are in the context of the Semiconductors & Semiconductor Equipment space in which it operates.

Please note, the presentation of NVIDIA's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, NVIDIA's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in NVIDIA's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of NVIDIA. Please utilize our Beneish M Score to check the likelihood of NVIDIA's management manipulating its earnings.

Evaluate NVIDIA's management efficiency

NVIDIA has return on total asset (ROA) of 0.3855 % which means that it generated a profit of $0.3855 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.9146 %, meaning that it created $0.9146 on every $100 dollars invested by stockholders. NVIDIA's management efficiency ratios could be used to measure how well NVIDIA manages its routine affairs as well as how well it operates its assets and liabilities. As of May 3, 2024, Return On Tangible Assets is expected to decline to 0.20. In addition to that, Return On Capital Employed is expected to decline to 0.18. At present, NVIDIA's Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 22.5 B, whereas Return On Tangible Assets are forecasted to decline to 0.20.

	Last Reported	Projected for Next Year
Book Value Per Share	17.41	6.84
Net Current Asset Value	0.00	0.00
Tangible Asset Value	0.00	0.00
Tangible Book Value Per Share	15.16	4.04
Enterprise Value Over EBITDA	44.84	58.59
Price Book Value Ratio	35.88	19.34
Enterprise Value Multiple	44.84	58.59
Price Fair Value	35.88	19.34
Enterprise Value	188.4 M	179 M

The analysis of NVIDIA's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze NVIDIA's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of NVIDIA Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.

Dividend Yield

0.0002

Forward Dividend Yield

0.0002

Forward Dividend Rate

0.16

Beta

1.744

Basic technical analysis of NVIDIA Stock

As of the 3rd of May, NVIDIA secures the mean deviation of 2.62, and Risk Adjusted Performance of 0.1036. In respect to fundamental indicators, the technical analysis model lets you check practical technical drivers of NVIDIA, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to break down nineteen technical drivers for NVIDIA, which can be compared to its peers in the industry. Please verify NVIDIA treynor ratio, and the relationship between the variance and potential upside to decide if NVIDIA is priced more or less accurately, providing market reflects its recent price of 858.17 per share. Given that NVIDIA has jensen alpha of 0.443, we recommend you to check NVIDIA's last-minute market performance to make sure the company can sustain itself at some point in the future.

NVIDIA's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific NVIDIA insiders, such as employees or executives, is commonly permitted as long as it does not rely on NVIDIA's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases NVIDIA insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Tim Teter over six months ago Payment of 6547 shares by Tim Teter of NVIDIA subject to Rule 16b-3
		White David L 1 over a year ago Acquisition by White David L 1 of 450000 shares of NVIDIA subject to Rule 16b-3

NVIDIA's Outstanding Corporate Bonds

NVIDIA issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. NVIDIA uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most NVIDIA bonds can be classified according to their maturity, which is the date when NVIDIA has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	NVIDIA PORATION Corp Bond US67066GAN43	View
	NVDA 584 14 JUN 24 Corp Bond US67066GAL86	View
	NVIDIA PORATION Corp Bond US67066GAM69	View
	US67066GAJ31 Corp Bond US67066GAJ31	View
	NVIDIA PORATION Corp Bond US67066GAG91	View
	NVIDIA PORATION Corp Bond US67066GAH74	View
	NVIDIA P 32 Corp Bond US67066GAE44	View
	NVIDIA PORATION Corp Bond US67066GAF19	View

View All NVIDIA Corporate Bonds

Understand NVIDIA's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing NVIDIA's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.1036
	Market Risk Adjusted Performance	0.2893
	Mean Deviation	2.62
	Semi Deviation	2.7
	Downside Deviation	3.13
	Coefficient Of Variation	674.84
	Standard Deviation	3.63
	Variance	13.2
	Information Ratio	0.133
	Jensen Alpha	0.443
	Total Risk Alpha	0.2734
	Sortino Ratio	0.1546
	Treynor Ratio	0.2793
	Maximum Drawdown	26.4
	Value At Risk	(3.89)
	Potential Upside	4.97
	Downside Variance	9.77
	Semi Variance	7.27
	Expected Short fall	(2.88)
	Skewness	0.9659
	Kurtosis	5.06

	Risk Adjusted Performance	0.1036
	Market Risk Adjusted Performance	0.2893
	Mean Deviation	2.62
	Semi Deviation	2.7
	Downside Deviation	3.13
	Coefficient Of Variation	674.84
	Standard Deviation	3.63
	Variance	13.2
	Information Ratio	0.133
	Jensen Alpha	0.443
	Total Risk Alpha	0.2734
	Sortino Ratio	0.1546
	Treynor Ratio	0.2793
	Maximum Drawdown	26.4
	Value At Risk	(3.89)
	Potential Upside	4.97
	Downside Variance	9.77
	Semi Variance	7.27
	Expected Short fall	(2.88)
	Skewness	0.9659
	Kurtosis	5.06

Consider NVIDIA's intraday indicators

NVIDIA intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of NVIDIA stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	1.3 M
	Daily Balance Of Power	0.9141
	Rate Of Daily Change	1.03
	Day Median Price	847.19
	Day Typical Price	850.85
	Price Action Indicator	24.86
	Period Momentum Indicator	27.76
	Relative Strength Index	50.08

NVIDIA Corporate Filings

F4	10th of April 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
8K	14th of March 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
	14th of February 2024 Other Reports	View Verify
13A	13th of February 2024 An amended filing to the original Schedule 13G	View Verify

NVIDIA time-series forecasting models is one of many NVIDIA's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary NVIDIA's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

NVIDIA Stock media impact

Far too much social signal, news, headlines, and media speculation about NVIDIA that are available to investors today. That information is available publicly through NVIDIA media outlets and privately through word of mouth or via NVIDIA internal channels. However, regardless of the origin, that massive amount of NVIDIA data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of NVIDIA news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of NVIDIA relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to NVIDIA's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive NVIDIA alpha.

NVIDIA Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards NVIDIA can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

NVIDIA Historical Investor Sentiment

Investor biases related to NVIDIA's public news can be used to forecast risks associated with an investment in NVIDIA. The trend in average sentiment can be used to explain how an investor holding NVIDIA can time the market purely based on public headlines and social activities around NVIDIA. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

NVIDIA's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for NVIDIA and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average NVIDIA news discussions. The higher the estimate score, the more favorable the investor's outlook on NVIDIA.

Be your own money manager

Our tools can tell you how much better you can do entering a position in NVIDIA without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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NVIDIA Corporate Directors

NVIDIA corporate directors refer to members of a NVIDIA board of directors. The board of directors generally takes responsibility for the NVIDIA's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of NVIDIA's board members must vote for the resolution. The NVIDIA board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.

Harvey Jones	Independent Director	Profile
Dawn Beach	Independent Director	Profile
Mark Perry	Independent Director	Profile
Tench Coxe	Independent Director	Profile

How to buy NVIDIA Stock?

Examine NVIDIA's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research NVIDIA's leadership team and their track record. Good management can help NVIDIA navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact NVIDIA's business and its evolving consumer preferences.
Compare NVIDIA's performance and market position to its competitors. Analyze how NVIDIA is positioned in terms of product offerings, innovation, and market share.
Check if NVIDIA pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about NVIDIA's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

Already Invested in NVIDIA?

The danger of trading NVIDIA is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of NVIDIA is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than NVIDIA. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile NVIDIA is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether NVIDIA offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of NVIDIA's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Nvidia Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Nvidia Stock: