NVIDIA’S INVENTION OF THE GPU
in 1999 sparked the growth of the PC gaming market, redefined modern computer graphics, and revolutionized parallel computing. More recently, GPU deep learning ignited modern AI — the next era of computing — with the GPU acting as the brain of computers, robots, and self-driving cars that can perceive and understand the world.
Reasons to buy – NVIDIA
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
- Here we see NVIDIA makes a margin of 59% on Gross Level and about 31% on Net level. This means that out of $1 that it makes $0.31 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
- Here we see net revenue growth of 40% in the revenue and the net profit figures grew by 83%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
- Here we see NVIDIA makes a Return on Assets of 27% and Return of Equity of 41% which is pretty good.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by NVIDIA to the SEC. All the data on the above analysis can be found at the link below