What is Nvidia Company?
Nvidia is a technology company, that designs & supplies graphics Graphic Processing Units (GPUs), Application Programming Interfaces (APIs), System on a Chip Units (SoCs) & Artificial Intelligence hardware & software.
Nvidia is the planet’s most valuable company right now worth $3.1 trillion. Nvidia Corporation was founded in 1993 by Jensen Huang, Chris Malachowsky & Curtis Priem.
How Nvidia Generates Money?
NVIDIA’s revenue is driven by several key segments, with gaming and data centers leading the way.
The gaming segment, including GeForce GPUs and laptops, contributes approximately 44% of total revenue, driven by high demand for advanced gaming hardware.
The data center segment, which includes AI and machine learning GPUs, accounts for around 40%, reflecting the rapid growth in AI and HPC applications.
Professional visualization, with products like Quadro GPUs, contributes 8%, while the automotive segment, including the NVIDIA DRIVE platform, and OEM & IP segments each add about 4%. This diversified revenue model underscores NVIDIA’s strong market position and innovative capabilities.
How much money does Nvidia Make?
In fiscal year 2023, NVIDIA reported a remarkable $60.922 billion in revenue, nearly doubling its previous year’s revenue of $26.974 billion with a growth of approximately 125%.
The company achieved a gross profit of $44.301 billion, resulting in a gross profit margin of 72%.
Additionally, NVIDIA recorded a net profit of $29.760 billion, translating to a net profit margin of 49%.
This impressive net profit margin indicates that nearly half of the company’s revenue is returned to shareholders as net profit. This financial performance underscores NVIDIA’s strong profitability and effective business strategy.
In fiscal year 2023, NVIDIA generated $28.090 billion in net cash from operating activities, a significant increase from $9.108 billion in 2021.
With 2.462 billion shares issued, this results in a net operating cash per share of $11.4.
This substantial growth in operating cash flow highlights NVIDIA’s robust operational efficiency and strong financial health, ensuring significant returns for its shareholders.
How many assets does Nvidia own?
As of the fiscal year ending January 28, 2024, NVIDIA reported total assets of $65.728 billion and total current assets of $44.345 billion.
The company’s total shareholders’ equity stood at $42.978 billion, with $22.750 billion owed to creditors, resulting in a debt-to-equity ratio of 53%.
This indicates that NVIDIA’s debt is only 53% of its shareholders’ equity, showing it is not highly leveraged.
The total current liabilities were $10.631 billion, and with a current ratio of 4.17, NVIDIA has a strong ability to cover its short-term debts.
These figures demonstrate that NVIDIA’s management has effectively maintained the company’s financial strength.
How much a Nvidia stock currently trading at?
NVIDIA Corporation, trading under the ticker symbol NVDA on the NASDAQ exchange, is currently priced at $126 per share, with a total market capitalization of $3.113 trillion.
For fiscal year 2023, the company reported earnings of $11.93 per share, resulting in a price-to-earnings (P/E) ratio of 10.56.
This P/E ratio suggests that assuming earnings remain constant, it would take nearly 11 years to recoup the initial investment. However, maintaining or growing these earnings is crucial.
Over the past few years, NVIDIA’s earnings per share were $1.74 in 2022 and $3.85 in 2021, indicating significant growth in 2023.
The key question remains whether the management team can sustain or exceed these earnings levels in the future.
Who owns the company?
The largest shareholder of NVIDIA Corporation is Vanguard Group Inc., owning 8.09% of the company.
The second-largest shareholder is BlackRock Inc., which holds 7.2% of the company. These major institutional investors play a significant role in influencing NVIDIA’s market performance and strategic decisions.
NVIDIA’s co-founder and CEO, Jensen Huang, owns 3.52% of the company, making him the largest individual shareholder.
Who runs the company now?
Jensen Huang, the co-founder of NVIDIA Corporation, has been the company’s CEO since its inception in 1993.
Under his leadership, NVIDIA has grown from a startup into a global leader in graphics processing units (GPUs) and artificial intelligence (AI). Huang’s vision and innovative approach have been instrumental in driving the company’s success and positioning it at the forefront of the technology industry.
