NVIDIA the next Great Tech Stock

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#16CallibaetisDry

If you want to talk NVIDIA I am interested in discussing the company and stock with regard to the companies fundamentals, the technical performance of the stock, and the emerging disruptive technology NVDA is right in the middle of.
The company had record earnings last quarter and is growing at an incredible rate due to the fact that graphics chips are going into data center, virtual reality, AI, IOT and self driving car technology and of course gaming.
This company is perfectly positioned to exploit all these emerging technologies and many more.
Gaming has been Nvidia's bread and butter and with the emergence of "eSports" and Virtual Reality gaming is growing fast, but NVDA is doing great in data center and automotive. NVDA looks to have a very promising future for the next 1-2-3-5-10+ years and earnings are exploding.
Many have suggested NVDA can grow its market share and be the next Intel or great tech stock/company household name like Microsoft, Apple etc.
I have been accumulating shares and plan to hold this stock long term and see how things play out.....
 
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Their P/E ratio has been increasing - this is a positive signal as investors expect the firm to continually grow in the future.
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They have more debts than equity but this is normal for high risky IT firms.

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Their profit margin has been steadily increasing - this is a good signal too - suggesting they are keeping cost constant while they sales has been increasing


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Return to shareholders has been increasing and there is a substantial increase in return in 2016.

Besides, Nvidia has raised its dividend from $0.115 to $0.14 per share. Moreover, the board has authorized an additional $2 billion in its stock repurchase program through the end of 2020.

Stock repurchase usually signals a positive outlook.

My friend purchased Apple when it was just below $100 and sold his shares when it rose to $300. So the big question is whether the current price is a good price to BUY , if you have already purchased them, it is a good idea to keep them. Just out of curiosity, how much did you pay for their shares? if you don't mind :)
 
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I am not really into stocks right now. But from a passing glance, I have 3 concerns:

They took on massive short-term debt in 2016 in the face of rising interest rates? And, continued with a massive buy back of stock in the face of a massive stock price run up.

The commodity video card business is a large part of their revenues. PC technology is merging with household appliances appliances and Intel/AMD built-it GPU's can handle most tasks. They need to have really rapid growth from their emerging technologies.

Noticed that their fixed assets haven't really grown in a decade. Semiconductors is a very capital intensive business. They are in the lowest quintile for operating margins in their peer group. Where is all the cash flow going?They must have a lot of interesting patents. At these valuations, I would not be a buyer on promises. It looks too much like a year 2000 mania stock.
 
From the growth in their balance sheet, I will tell you that all they have is ideas.

The issuance of short term debt may just be an orchestrated maneuver to goose the stock while their business is performing at a cyclical high.
 
xandman said:
From the growth in their balance sheet, I will tell you that all they have is ideas.

The issuance of short term debt may just be an orchestrated maneuver to goose the stock while their business is performing at a cyclical high.
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I always wondered about the issuance of debt - why would investors (probably they are financial institutions than small investors) buy their debt than their shares? especially, most company debts have call provision which could be a disadvantage to investors. Maybe it could be that their company debt has an option for debtholders to convert the debt to shares
 
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NVIDIA has been the strongest stocks on the 3 big indexes (SP500, NDX100, Dow30) this year - nothing wrong with buying strength! Being less than 1% from its all time highs means that almost everyone long on this stock are winners.

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From TA view, there is a momentum in uptrend on daily to monthly charts but I would NOT consider buying it now - buying at the peak of their price - it's just not an ideal investment strategy. I would wait for the price go below somewhere $ 80 or 90 when it makes a correction/pullback.
 
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NVIDIA CUDA is the life force behind the AI/Machine Learning revolution. They brilliantly made CUDA to only work on their own GPU's.... I think they are good long term bet.
 
victorycountry said:
I always wondered about the issuance of debt - why would investors (probably they are financial institutions than small investors) buy their debt than their shares? especially, most company debts have call provision which could be a disadvantage to investors. Maybe it could be that their company debt has an option for debtholders to convert the debt to shares
More...

Professional equity investors have a totally different mindset/concerns from professional fixed income investors. ie. return capital vs return of capital, pecking order in the claim on assets.
 
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