Business Operation
Nvidia is a company that designs Graphics Processing Units (GPUs) for high-performance computing & System Chip units (SoCs) for the mobile computing & automotive market. Nvidia is also a dominant player in Artificial Intelligence.
Nvidia was founded by Jensen Huang Currently CEO of the company in 1993. In today’s market, Nvidia is controlling 95% of the AI chip market & Nvidia has over 80% control over the global GPU semiconductor chip market. As you can see when it comes to manufacturing chips Nvidia has a monopoly.
Financial Performance
Over the past 5 years, Nvidia has grown its revenue income by almost 4 times, from $16.675 billion in 2021 to $61 billion in 2023. Net income has increased from $4.3 billion to $29.76 billion.
When it comes to the financial position of the company, Nvidia has almost $65.728 billion in total assets & $43 billion in equity. Nvidia is in a strong financial position when it comes to leverage. It does not owe a lot of debt. It is a good sign when it comes to investing.
NVDA Stock Performance
The NVDA stock is currently trading at $830 per share & current market cap of the company sits at $2 trillion. 3rd largest company in the world by market cap dominance. The PE ratio of the stock high very high right now. It is almost 70. It means with the performance of the current situation of the company it will take 70 years to recover your initial investment.
As value investors, we are not comfortable with such things. But if you are a high-risk investor or think Nvidia is going to control the AI market over the next couple of decades your view on the stock may be different.
Shareholders
When it comes to ownership of the company Vanguard Group is the largest shareholder of the company which owns 8.18% of the company. 2nd largest shareholder is Blackrock which owns 7.19%.
CEO of the Company
The company is run by its co-founder Jensen Huang. His estimated net worth is around $80 billion & he is the 17th richest person in the world. Early in his career, he worked as a microprocessor designer at AMD & At age 30 in 1993 he invented Nvidia with his partners Chris & Curtis.
Jensen owns 3.6% of Nvidia’s stock & he has been working for the company as the CEO over the last three decades.
