Nvidia (NVDA stock): Exceptional company, UNRIVALED stock? Business and valuation analysis!

Nvidia stock is one of the best performers over the last 5 years! 10x in 5 years! What do they do? What's driving their growth, and where will NVDA stock go from here?

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🐦 Twitter: @UnrivaledInvest

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DISCLAIMER:
This video is purely for informational and educational purposes. This is NOT investment advice. You should not treat any opinion expressed by Daniel or Unrivaled Investing as a specific inducement to make a particular investment or follow a particular strategy but only as an expression of opinion. Daniel and Unrivaled Investing are not under any obligation to update or correct any information provided on this website or in these videos. Daniel and Unrivaled Investing’s statements and opinions are subject to change without notice.

You should be aware of the real risk of loss in following any strategy or investment discussed in this video or on this website. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned by Daniel or Unrivaled Investing may not be suitable for you. Past performance is not indicative of future results.

[unrivaled]

If you’re interested in joining a community of fellow investors looking to learn and find exceptional companies, we have an exclusive community on Discord. You can sign up at www.unrivaledinvesting.com, click JOIN THE JOURNEY. I also call out potential multi-baggers and share my own personal portfolio for those interested.

[VeziSalsa]

I think it's important to stick to stocks that are immune to economic policies. AI stocks that have the potential to power and transform future technologies. It seems AI is the trajectory most companies are taking, including even established FAANG companies. Maybe there are other recommendations?

[GnomeSeven]

NVDA will be larger than google by 2030. People are not understanding how insane the value of GPU processing and CUDA software.

[b.sharp.]

Year after year, as semis go up the S curve, they will get more and more commoditized. Already, we are seeing big tech moving away from Intel and Nvidia to making their own ARM-based chips (look at Apple, Amazon, and Tesla). The real value prop behind Nvidia, in my opinion, is their software. Unlike AMD, Qualcomm, Skyworks, Intel, Cirrus, etc, Nvidia is heavily focused on their Omniverse Platform. I see you included some screenshots from Nvidia's 2022 GTC Global Al conference. I feel the point was sort of missed. They weren't just trying to show what their chips can handle, they were demonstrating real world uses of their own proprietary software based on Pixar's open source framework.

[keithjung]

Bought it 3 years ago and added along the way. Last add was at $197. Holding for at least 8-10 years. I am not a trader. I buy and hold like I did Apple 5 years ago. I try to find a great company and ride the long wave.

[RussAbbott]

Thanks, Daniel. I like your work, and I like NVDA. My biggest concern wrt your analysis, which is the same for all DCF analyses, is that it's so arbitrary. Your final value for the company has a range of 3X. And you say, the stock price could be "way higher or lower." Why even bother with the analysis if the range of outcomes is so very broad? It might make sense to do the analysis backward: ask what assumptions would justify the current price and ask whether those assumptions seem like a reasonable risk.

[wataruik]

Finally you got NVDA covered. Thank you ❣️

[benturtle]

NVDA is one of the greatest companies in the world.
Any thoughts on Himax Technologies from Taiwan (HIMX)? it has 4.78 PE Ratio. They are also designing semiconductors and seems really undervalued at the momento.

[anonsurf]

Today, nvda is at 184.15 and the PE is 48. I'm personally adding some at these levels. Hershey is trading at ridiculous PE of 31 'which shows you there is a lot of money out there. It will rotate back to companies like nvidia eventually.

[f.w.]

NVDA is also the preferred card for crypto mining, almost 100% of gpu farms use their cards. As the crypto market grows so will NVDA, also as of April 22 they finally got below 200.00 they close out at around 195.00, excellent buying opportunity, well at least for me since my DCA is around 194.00.

[amir]

Nvidia was my first multibagger that I still own to this day…I think there is a high chance that they’ll surpass 35% growth and improve on their margins from here given that they’re now providing software that they’re charging for. High margin recurring SaaS business that will be in the billions in revenue in 5 years is not even accounted for in today’s valuation. I highly recommend the recent Acquired episode on NVIDIA that goes into the founding history of the company!

[tipstesla]

NVDA has really come down in price maybe an update on this video would be amazing, Weve all been watching NVDA for years go crazy now its coming home to roost, thanks for what you do

[jimmy]

Motley Fool directed to them a few years ago. I now own about 1400 shares after the stock split, and I'm planning on buying more. A long term buy and hold forever. Autonomous vehicles, Data centers, Gaming, Metaverse.

[eminhawa]

Great video! Why are your price to sales multiples so low? Why wouldn’t Nvdia trade at 10 times revenue?

[bobbab]

I'm also watching and learning at this point and have a small position (less than 50 shares). I noticed the Automotive line and how small it is now. That's a segment I'm watching closely because I know the AV area. NVDA is a monster thought leader right now in that space for multiple reasons and I'd like to see how they monetize in that space. Of course, also watching the continued growth rate.

[fas]

Daniel - you recently voiced concerns on the macroeconomic outlook over the next few years/decade. I'm wondering - would you (as an 18 year old) sell out now and maybe lose 1-2 years of good markets or take the gamble of trying to sit out desastrous circumstances? Thanks in advance and as always a good watch. Cheers mate

[chashdeveloper]

Are they buying back shares? or continue to dilute the existing shareholders?

[tomfromcanada]

Daniel my maniel, great video as usual. Wondering what your take is on the retail investors buying into this market at the open and close. Are they buying into a bull trap? Is this behaviour connected to the resurgence of risk on assets like crypto, gme, AMC and others? In January i reallocated my portfolio to very defensive assets as I see this type of behavior as sort of canary in the coalmine relating to the health of the market. I'm not saying retail investors are not as smart as the institutions that normally control market movements but I get very nervous when I hear the retail investors are much more confident in this market than the institutions considering how much more experience and tools the institutions have. I work in discretionary sales and have seen revs really start to slow down and I am confident we are going to see similar results in the market due to high inflation and people cutting back and I'm just not sure that retail investors are prepared for this as they continue to be so bullish. Coming quarter results might start to spell disaster for alot of businesses. What's your take?? Ah almost forgot would love to hear your position on TSM as you seem to have good insight into the Asian market. Thanks for the content.

[tartmost]

Sorry I’m really new to the investment game.. but NVDA was $820. a share just last July, and did it’s 4 for 1 split that brought it back into reach for new investors or people wanting to add more.. so had they not split last July NVDA would be at $1128.76. Now everything I read says it’s got the momentum to hit a thousand again. Even riding it too $800. Would set you up to cash out, and reinvest or stay put.. but it’s moving up in the S&P, it’s moving up in the ETFS like VGT and FTEC.. if they believe in it so should I. But if I’m missing something please inform me as I’m new as well.

[mattgin]

I def want to have a large portion of my portfolio in semi-conductord in the futur and Nvdia is one of my favorite "target". But damn is this valuation rich... Will wait for it to halve.... Wishing I dont wait 4ever.