NVIDIA Community

NVIDIA Corporation (NVDA) has demonstrated remarkable growth, particularly in the AI and data center sectors, positioning it as a compelling investment opportunity for the next 1 to 3 years. Sector: Technology Industry: Semiconductors Market Capitalization: $3.4t (Mega-cap) Major Competitors: NVIDIA (NVDA) operates in a highly competitive landscape, with several major and direct competitors in its key markets, including AI, gaming, data centers, and automotive.

Nvidia will hit $400b annual revenue in 5 years time. ~90% of revenue will come from data centre customers.

When looking at the earnings release, we could see that the company has been benefitting from record Data Center adoption. its revenue grew by 23% compared to the fourth quarter and 427% from a year ago it is fueled by strong and accelerating demand for generative AI training and inference Generative AI has expanded to consumer internet companies, and enterprise, sovereign AI, automotive and healthcare customers, creating multiple multibillion-dollar vertical markets Moreover, the company decided to announce a series of rewards for investors 10 for 1 forward stock split result in a proportionate increase in the number of shares of authorised common stock increasing its quarterly cash dividend by 150% from $0.04 per share to $0.10 per share of common stock

Summary I believe Nvidia is positioned to sustain robust growth over the next three years, driven by its dominance in artificial intelligence (AI) and data-center semiconductors. However, as an individual analyst, I am mindful of valuation and risk factors.

Positives 1. Market Leadership in GPUs and AI Acceleration: NVIDIA dominates the discrete GPU market, particularly for high-performance gaming and data center AI workloads.

NVIDIA Corporation (NVDA), currently trading at $120.07 per share, has been a dominant force in the semiconductor industry, particularly in graphics processing units (GPUs) and artificial intelligence (AI) applications. Recently, the stock experienced a significant decline, dropping 17% in January 2025, primarily due to concerns over emerging AI technologies that may reduce the demand for high-cost hardware.

NVIDIA's stock price has recently declined to $116, which I perceive as an overreaction by the market. I have entered a position from to $128 and executed a swing trade from $128 to a TP of $141, based on technical analysis indicating a potential rise to close the gap at $141.

Update 27th Jan 2025 My original narrative was primarily based on Aswath Damodaran's Nvidia narrative and valuation. The recent news from DeepSeek further supports this narrative.

Why I Like Nvidia Revenue growth has been outstanding over the past five years, suggesting that the company is capturing significant market share during this period. Earnings per share (EPS) have significantly outperformed competitors, with an annual increase of 86% over the last five years.