Nvidia’s Q4 2023 results are going to be out soon.
Devarsh Srivastava
Turning Insights into Impact | Business Development Analyst | Growth Strategist
What does it do?
The focus of Nvidia as a company is on designing GPU, performing cryptocurrency mining, and chips for EVs and Robotics. It majorly caters to 5 primary markets which are gaming, Data Centers, Professional Visualization, Automotive, and OEM.
Major Sources of Income-
1)????? Gaming Industry – 45%
2)????? Datacentre – 41%
3)????? Professional Visualization – 8%
4)????? Automotive – 2%
5)????? OEM [Original Equipment Manufacture] – 4%
Background about last 3 Quarters-
I have read the financial reports of Nvidia for the last 3 quarters and post that here are my results. In Q2 company showed awesome exponential growth Total revenue was increased by 87.8% and the profits rose by 103.6%. Whereas in Q3 the growth in total revenue and profits was not the same as in Q2 but it was quite impressive, the total revenue increased by 34.15% and profits increased by 41.61%.
Below I have analysed a few more important ratios like ROE [Return on Equity], ROA [Return on Asset], Current Ratio, and Debt to Equity.
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As we see above in the table the change in Q3 is not as impressive as Q2 but it shows strong positive growth. Due to this the stock price of Nvidia skyrocketed.
Intrinsic value is a measure of the worth of any asset. It can be measured by various methods like comparison, build-up, discounted cash flow, Dividend discount model, Earning Power Value, Peter Lynch Fair Value, etc.
The intrinsic value of the stock of Nvidia varies from the range of $34.14 to $191.17 according to different calculation methods this indicates Nvidia is overvalued according to its book value.
My Analysis-
If the Q4 results are not impressive there is a very high probability for Nvidia’s price falling. There is very little possibility of beating the Q3 results.
Nvidia stock for the short term is not a good choice but for the long term a good stock because of constant growth.
I have also attached the links to all my resources. If you need a copy of my Excel sheet, please let me know in the comments.
Do let me know your viewpoints on it and any recommendations on which company I should Analyse next.
Resources-