Is Nvidia's Stock A Buying Opportunity? | Stock Analysis

Hi! In this video I did a stock analysis for Nvidia, one of the leading producers of GPUs for computing, gaming, and automation. Nvidia recently announced earnings for the first quarter of 2022 and revealed some pretty interesting news surrounding the stock. I used a discounted cash flow model on Microsoft Excel to figure out what the intrinsic value of Nvidia would be based on the projected free cash flow for the business. I looked into Nvidia's income statement, Nvidia's balance sheet, and Nvidia's cash flow statement to get a sense of how much debt they currently have as well as if they'll grow their profits in the future and also to identify what a good buying price would be for Nvidia from a value investing perspective.

Nvidia Q1 Earnings Report

1) First Quarter Revenue up 46% year over year to $8.29 billion.
2) Earnings per share was $0.64, down 16% year over year. The decrease primarily came as a result of a one time acquisition termination charge of $1.35 billion. Without taking the one time charge into consideration, Nvidia earnings per share was $1.36, which is up 46% year over year.
3) Nvidia returned $2.1 billion back to shareholders in the first quarter through share repurchases and dividends.
4) Gross Margin is up 1.4% year over year.
5) Operating expenses are up 113% year over year (one time acquisition termination cost).
6) Net income down 15% year over year.
7) Data center revenue was up 83% year over year to $3.73 billion (Partnering with industry leaders like Amazon, Alphabet, IBM and Microsoft to assist in the adoption of artificial intelligence by selling GPUs, CPUs, and software to customers through perpetual license and subscription based models).
8) Gaming revenue was up 31% year over year to $3.62 billion (Selling GPUs and software to improve gaming graphics for both desktop and laptop PCs).
9) Professional visualization revenue was up 67% year over year to $622 million (Selling GPUs to assist with design, manufacturing, architecture, aerospace and medical applications).
10) Automotive and robotics revenue was down 10% to $138 million year over year (Developing solutions to help cars drive fully autonomous).

OPTIONS TRADING VIDEOS

STOCK ANALYSIS VIDEOS

HOW TO READ FINANCIAL STATEMENTS VIDEOS

0:00 Intro
1:09 First Quarter Highlights
3:55 Income Statement
6:38 Balance Sheet
7:28 Cash Flow Statement
8:40 Intrinsic Value Per Share
10:25 Competitor Analysis

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Nvidia's revenue and net income increased year over year despite the fact that their stock price is tumbling. Is Nvidia presenting a good buying opportunity?