Is NVIDIA (NVDA) losing Value?

NVIDIA (NVDA) could no longer be a safe and money-making value investment. The chip maker is losing share value and making less money.

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For example, Mr. Market paid $222.42 for NVIDIA (NASDAQ: NVDA) on 14 September 2021 and $131.98 for NVIDIA on 16 September 2022. Thus, NVIDIA has lost $90.44 in share value in a little over a year.

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Similarly, NVIDIA’s quarterly revenues fell from $8.288 billion on 30 April 2022 to $6.704 billion on 31 July 2022. However, NVIDIA’s quarterly revenues grew from $6.507 billion on 31 July 2021.

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Dramatically, NVIDIA’s quarterly operating income fell from $2.444 billion on 31 July 2021 to $1.868 billion on 30 April 2022 and $499 million on 31 July 2022. Additionally, the quarterly gross profit rose from $4.215 billion on 31 July 2021 to $5.431 billion on 30 April 2022 and fell to $3.036 billion on 31 July 2022.

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How Much Value is NVIDIA Losing?

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Thus the NVIDIA Corporation (NVIDIA)?is losing money, but is it losing value? The answer is yes.

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For example, NVIDIA’s total assets fell from $45.212 billion on 30 April 2022 to $43.476 billion on 31 July 2022. However, the Total Assets grew from $38.65 billion on 31 July 2021.

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Similarly, the cash and short-term investments fell from $20.338 billion on 30 April 2022 to $17.037 billion on 31 July 2022. The cash and short-term investments grew from $19.782 billion on 31 July 2022.

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However, NVIDIA has less debt. Its total debt fell from $12.791 billion on 31 July 2021 to $11.699 billion on 30 April 2022 to $11.692 billion on 31 July 2022. So, yes, NVIDIA has less value.

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Worryingly, revenue growth is falling at NVIDIA. NVIDIA’s revenues only grew by 3.03% in the quarter ending on 31 July 2022. The revenues grew by 46.41% in the quarter?ending on 30 April 2022 and 68.31% in the quarter ending on 31 July 2021.

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How Much Cash is NVIDIA (NVDA) Generating?

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NVIDIA (NVIDIA)?has less value and is making less money, but it still generates enormous amounts of cash. However, NVIDIA is generating less cash.

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For example, NVIDIA had a total quarterly operating cash flow of $1.27 billion on 31 July 2022. The quarterly operating cash flow fell from $1.731 billion on 30 April 2022 and $2.682 billion on 31 July 2021.

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Dramatically, NVIDIA’s quarterly ending cash flow fell from $4.65 billion on 31 July 2021 to $3.887 billion on 30 April 2022 to -$874 million on 31 July 2022. However, NVIDIA still pays off enormous amounts of debt. It had a quarterly financing cash flow of -$3.762 billion on 31 July 2022 that fell from -$2.446 billion on 30 April 2022.

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NVIDIA sometimes borrows enormous amounts of money. It reported a quarterly financing cash flow of $4.501 billion on 31 July 2021.

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Can NVIDIA add value?

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However, the NVIDIA Corporation (NVDA) still invests enormous of money in the company and technology. NVIDIA reported a quarterly investing cash flow of $2.612 billion on 30 April 2022, that fell to $1.618 billion on 31 July 2022. The quarterly investing cash flow rose from -$2.533 billion on 31 July 2021.

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Those investments could pay off as better technology. For example, NVIDIA claims its new H100 Tensor Core GPU, or Hopper, set world records in artificial intelligence (AI) workload inference. They claim the H100 Tensor Core GPU’s performance exceeds previous generation GPU (graphics processing unit) performance by 4.5 times. Moreover, they claim the H100 set world records in inference on all workloads.

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AI Inference is the process of using a trained neural network?to make a prediction. Hence, the H100 Tensor Core GPU could make predictions 4.5 times faster than other GPUs. AI Inference drives end-to-end AI workflow. Thus, the Hopper could make data engineering, AI training and AI inference and deployment faster.

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Will NVIDA dominate AI?

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Plus, the NVIDIA A100 Tensor Core GPUs and NVIDIA Jetson AGX Orin module for AI-powered robotics can deliver higher leadership inference performance on all MLPerf Benchmarks.

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The MLPerf Benchmarks are the industry standards for AI training and inference. MLPerf is a consortium of AI leaders from academia, research labs, and industry that builds fair and useful benchmarks for unbiased evaluations of training and inference for hardware, software, and services.

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They claim NVIDIA’s full-stack innovation increased its performance by over 20 times in three years of MLPerf. For example, the A100 2.0 increased its performance on the Mask R-CNN MLPerf benchmark by 23 times, the ResNet-50 MLPerf benchmark by 19 times and the BERT MLPerf benchmark by 14 times.

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NVIDIA Performance is increasing

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Finally, NVIDA A100 GPUs won more tests than any other submission?in the MLPerf’s data center and edge computing categories and scenarios. The A100 was the leader in MLPerf training benchmarks.

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Plus, the NVIDIA Orin won more MLPerf benchmarks?than any other low-power-system-on-a chip. In particular, they claim the Orin is five times faster than the previous generation, Jetson AGX Xavier model and is two times more energy efficient. Moreover, they claim the Orin showed a 50% increase in energy efficiency between April 2022 and June 2022.

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The Orin integrates all of NVIDIA’s Ampere architecture GPU into a single chip and a cluster of powerful Arm CPU cores. Yet, Orin supports the full NVIDIA AI software stack, including autonomous vehicle, medical device, and robotics platforms.

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Thus, NVIDIA’s investment is paying off with more performance. I think NVIDIA could become the leader in AI, particularly in self-driving vehicles through the NVIDIA DRIVE Hyperion Autonomous Vehicle Development Platform. NVIDIA could also become a leader in robotics through NVIDIA ISAAC, an accelerated platform for robotics and AI.

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Thus, NVIDIA’s investment is paying off by increasing AI performance. However, NVIDIA faces some problems, including US government restrictions on the export of high-end artificial intelligence products to China. US officials have banned sales of NVIDIA’s A100 and H100 products to Chinese customers,?Barron’s?reports.

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To explain, some American leaders fear the Chinese People’s Liberation Army could use NVIDIA chips to power next generation weapons. For example, the drones and missiles that have humiliated the Russian Army in the Ukraine War.

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China is the world’s second-largest economy, with $17.734 trillion in gross domestic product?(GDP) in 2021. Hence, access to Chinese markets could be vital for NVIDIA’s future.

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Is NVIDIA (NVDA) a good stock?

I consider NVIDIA (NVDA) a good stock because it offers industry-leading technology and regular dividends.

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For example, NVIDIA has scheduled eight 4? quarterly dividends through 14 June 2024. Overall, the NVIDIA Corporation offered a 16? forward dividend and a 0.12% forward dividend on 16 September 2022.

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If you want a dividend stock that could grow with artificial intelligence. I think NVIDIA is worth a look. I consider NVIDIA a bargain at $131.98 a share. Moreover, NVIDIA is now more appealing than ever because its share price is falling.