NVIDIA CORP.

NDQ-NVDA RECENT
PRICE 857.74 P/ERATIO 40.6(Trailing:
Median: 35.0) P/E RATIO 2.27 YLD
66.1 RELATIVE DIV’D
Nil VALUE
LINE
TIMELINESS 2 Lowered 12/22/23 High:
Low:
4.1
3.0
5.3
3.8
8.5
4.7
30.0
6.2
54.7
23.8
73.2
31.1
60.5
31.9
147.3
45.2
346.5
115.7
307.1
108.1
505.5
140.3
974.0
473.2
Target Price Range
2027 2028 2029
SAFETY 3 Raised 12/22/23 LEGENDS
30.0 x ″Cash Flow″ p sh
TECHNICAL 3 Raised 3/22/24 . . . . Relative Price Strength
4-for-1 split 7/21 1250
BETA 1.25 (1.00 = Market) Options: Yes
Shaded area indicates recession
18-Month Target Price Range 800
Low-High Midpoint (% to Mid) 600
500
$358-$1049 $704 (-20%) 400
2027-29 PROJECTIONS 4-for-1 300
Ann’l Total 250
Price Gain Return 200
High 1465 (+70%) 14%
Low 975 (+15%) 4% 150
% TOT. RETURN 2/24
Institutional Decisions THIS VL ARITH.*
STOCK INDEX
100
2Q2023 3Q2023 4Q2023 Percent 120
to Buy 1485 1801 2141 1 yr. 240.9 10.4
shares 80 3 yr. 478.1 16.5
to Sell 1784 1549 1477 traded 40
Hld’s(000)160846416003131626750 5 yr. 1965.3 63.1
NVIDIA was incorporated during 1993, in 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 © VALUE LINE PUB. LLC 27-29
Delaware. The company’s initial public offer- 2.12 2.32 2.95 4.01 4.83 4.46 6.72 10.74 10.94 24.72 40.35 47.90 Sales per sh A 73.35
ing of about 10.5 million shares, split ad- .39 .38 .79 1.34 1.82 1.30 2.19 4.36 4.02 13.49 22.20 26.60 ‘‘Cash Flow’’ per sh 38.80
justed, at $4 a share, occurred on January .28 .27 .64 1.21 1.66 1.13 1.73 3.85 3.34 12.96 21.50 25.75 Earnings per sh A B 37.50
22, 1999. Net proceeds totaled approxi- .09 .10 .12 .14 .15 .16 .16 .16 .16 .16 .16 .16 Div’ds Decl’d per sh 1.50
mately $43 million. The lead underwriters .06 .04 .08 .24 .25 .20 .45 .39 .74 .43 .55 .60 Cap’l Spending per sh .65
were Morgan Stanley Dean Witter, Ham- 2.00 2.07 2.46 3.08 3.85 4.99 6.81 10.62 8.96 17.44 25.65 30.35 Book Value per sh D 34.10
brecht & Quist, and Prudential Securities. 2209.3 2156.0 2340.0 2424.0 2424.0 2448.0 2480.0 2506.0 2466.0 2464.0 2440.0 2400.0 Common Shs Outst’g C 2250.0
CAPITAL STRUCTURE as of 1/28/24 16.9 22.6 23.5 33.3 33.9 40.5 60.6 53.4 53.1 31.1 Bold figures are Avg Ann’l P/E Ratio 32.5
.89 1.14 1.23 1.67 1.83 2.16 3.11 2.89 3.07 1.74 Value Line Relative P/E Ratio 1.80
Total Debt $9.709 bill. Due in 5 Yrs $3.500 bill.
estimates
LT Debt $8.459 bill. LT Int. $225.0 mill. 1.8% 1.6% .8% .4% .3% .3% .2% .1% .1% .1% Avg Ann’l Div’d Yield .1%
(16% of Cap’l)
Leases, Uncapitalized: Annual rentals $290 mill. 4681.5 5010.0 6910.0 9714.0 11716 10918 16675 26914 26974 60922 98500 115000 Sales ($mill) A 165000
20.9% 18.8% 30.7% 35.1% 34.7% 29.6% 33.8% 41.7% 39.2% 62.5% 64.5% 64.5% Operating Margin 62.0%
220.1 197.0 187.0 199.0 262.0 381.0 1098.0 1174.0 1544.0 925.0 975 1025 Depreciation ($mill) 1250
No Defined Benefit Pension Plan 630.6 614.0 1666.0 3047.0 4141.0 2796.0 4332.0 9752.0 8366.0 32312 53180 62870 Net Profit ($mill) 86080
16.5% 17.4% 12.5% 4.7% -- 5.9% 1.7% 1.9% 7.5% 14.4% 16.0% 15.0% Income Tax Rate 15.0%
Pfd Stock None 13.5% 12.3% 24.1% 31.4% 35.3% 25.6% 26.0% 36.2% 31.0% 53.0% 54.0% 54.7% Net Profit Margin 52.2%
4817.3 3702.0 6748.0 8102.0 9228.0 11906 12130 24494 16510 33714 47500 50000 Working Cap’l ($mill) 40000
1384.3 10.0 1989.0 1985.0 1988.0 1991.0 5964.0 10946 9703.0 8459.0 8000 7500 Long-Term Debt ($mill) 5000
Common Stock 2,464,000,000 shs. 4418.0 4469.0 5762.0 7471.0 9342.0 12204 16893 26612 22101 42978 62615 72845 Shr. Equity ($mill) 76775
11.3% 14.2% 21.9% 32.5% 36.8% 19.9% 19.4% 26.3% 26.7% 63.0% 75.5% 78.5% Return on Total Cap’l NMF
MARKET CAP: $2.1 trillion (Large Cap) 14.3% 13.7% 28.9% 40.8% 44.3% 22.9% 25.6% 36.6% 37.9% 75.2% 85.0% 86.5% Return on Shr. Equity NMF
10.1% 9.0% 24.4% 36.2% 40.4% 19.7% 23.3% 35.1% 36.1% 74.3% 84.5% 86.0% Retained to Com Eq NMF
CURRENT POSITION 2021 2022 1/28/24
($MILL.) 30% 35% 16% 11% 9% 14% 9% 4% 5% 1% 1% 1% All Div’ds to Net Prof 4%
Cash Asset 21208 13296 25984
Receivables 4650 3827 9999 BUSINESS: NVIDIA Corp. is a leading developer of computing plat- ics, and others. R&D was 10% of 2023 sales. Int’l. sales accounted
Inventory (Avg Cst) 2605 5159 5282 forms that utilize its graphics processing units and software for vari- for 56% of revenues. Has about 29,500 employees. Offs. and dirs.
Other 366 791 3080 ous applications. Revenue by market platform: data center (78% of own 4.0% of common stock; Vanguard, 8.3%, BlackRock, 7.3%; Fi-
Current Assets 28829 23073 44345 2023 total), gaming (17%), professional visualization (3%), automo- delity, 5.6% (4/23 proxy). President & CEO: Jen-Hsun Huang. Inc.:
Accts Payable 1783 1193 2699 tive (2%), and other (less than 1%). Production of semiconductor DE. Address: 2788 San Tomas Expressway, Santa Clara, CA
Debt Due -- 1250 1250 wafers is outsourced to Taiwan Semiconductor, Samsung Electron- 95051. Telephone: 408-486-2000. Internet: www.nvidia.com.
Other 2552 4120 6682
Current Liab. 4335 6563 10631 NVIDIA Corp. continues to generate the company still possesses a substantial
ANNUAL RATES Past Past Est’d ’21-’23 impressive results. Sales soared past runway for growth. The adoption of AI
of change (per sh) 10 Yrs. 5 Yrs. to ’27-’29 $22 billion in the January quarter, an in- tools by corporations and governments
Sales 25.0% 31.5% 29.5% crease of 265% year over year and 22% se- around the world still appears to be in the
‘‘Cash Flow’’ 37.5% 41.0% 32.0%
Earnings 41.0% 42.0% 33.0% quentially. This performance comfortably early innings, and NVIDIA figures to be
Dividends 17.5% 3.0% 45.0% exceeded the company’s earlier guidance of one of the primary beneficiaries of this
Book Value 21.0% 31.5% 18.5% $20 billion, and helped adjusted earnings ongoing transformation. CEO Jen-Hsun
Fiscal QUARTERLY SALES ($ mill.) A Full to reach $5.16 a share, up from $0.88 in Huang, for instance, indicated that he ex-
Year Fiscal
Begins Apr.Per Jul.Per Oct.Per Jan.Per Year the prior-year period and well above our pects data center infrastructure invest-
2021 5661 6507 7103 7643 26914 estimate of $4.44. All told, the final top- ments around the world, which already
2022 8288 6704 5931 6051 26974 and bottom-line tallies for fiscal 2023 amount to roughly $1 trillion, to more
2023 7192 13507 18120 22103 60922 (ended on January 28th) of $60.9 billion than double over next five years.
2024 23750 24250 25000 25500 98500 and $12.96 a share, respectively, dwarfed NVIDIA stock has climbed to new
2025 26250 27750 29500 31500 115000 the 2022 comparable figures of $27.0 bil- heights. The shares, which more than tri-
Fiscal
Year EARNINGS PER SHARE A B Full
Fiscal
lion and $3.34. The growth is being pled in price during 2023, are up another
Begins Apr.Per Jul.Per Oct.Per Jan.Per Year powered by surging demand from the Data 70%-plus so far this year, including a
2021 .76 .94 .97 1.18 3.85 Center market, where the company’s prod- double-digit percentage advance in the
2022 1.36 .51 .58 .88 3.34 ucts are providing the computing power to wake of the latest earnings results. The
2023 1.09 2.70 4.02 5.16 12.96 support the expanding use of generative recent surge has pushed NVIDIA’s market
2024 5.20 5.35 5.40 5.55 21.50 artificial intelligence (AI) and large lan- capitalization beyond that of Alphabet and
2025 6.00 6.25 6.50 7.00 25.75 guage models. Amazon.com, and it now stands behind
Cal- QUARTERLY DIVIDENDS PAID Full The positive momentum will likely only Microsoft and Apple among the
endar Mar.31 Jun.30 Sep.30 Dec.31 Year carry over into fiscal 2024. In the near world’s most valuable companies. The
2020 .04 .04 .04 .04 .16 term, NVIDIA expects April-quarter sales stock remains a timely selection for the
2021 .04 .04 .04 .04 .16 to push ahead to roughly $24 billion, year ahead, though 3- to 5-year appreci-
2022 .04 .04 .04 .04 .16 which will likely lift share earnings past ation appears only average in the wake of
2023 .04 .04 .04 .04 .16 the $5.00 mark. Perhaps more important- its sustained run-up.
2024 .04 ly, management appears confident that Robert M. Greene March 22, 2024
(A) Fiscal year ends on the last Sunday in Jan- losses: ’22, $1.60; ’23, $1.03. Next earnings (C) In millions, adjusted for split. Company’s Financial Strength A
uary of following year. report due late May. Qtly. egs. may not sum to (D) Incl. intangibles. At 1/28/24, $5.5 billion, Stock’s Price Stability 30
(B) Diluted earnings. Excludes nonrecurring total, due to change in shares outstanding. $2.47 a share. Price Growth Persistence 100
Earnings Predictability 55
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