NVDA

NVIDIA Corp

TMT


Presented:05/17/2018
Price:$247.71
Cap:$155.31B
Current Price:$131.60
Cap:$3,228.15B

Presented

Date05/17/2018
Price$247.71
Market Cap$155.31B
Ent Value$136.61B
P/E Ratio41.22x
Book Value$12.33
Div Yield0.24%
Shares O/S627.00M
Ave Daily Vol14,986,791
Short Int2.82%

Current

Price$131.60
Market Cap$3,228.15B
NVIDIA Corp. engages in the design and manufacture of computer graphics processors, chipsets, and related multimedia software. It operates through the Graphics Processing Unit (GPU) and Tegra Processor segments. The GPU segment comprises of product brands which aims specialized markets including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users. The and Tegra Processor segment integrates an entire computer onto a single chip, and incorporates GPUs and multi-core CPUs to drive supercomputing for autonomous robots, drones, and cars, as well as for consoles and mobile gaming and entertainment devices. The company was founded by Jen-Hsun Huang, Chris A. Malachowsky, and Curtis R. Priem in January 1993 and is headquartered in Santa Clara, CA.

Publicly traded companies mentioned herein: Advanced Micro Devices Inc (AMD), Alibaba Group Holding Ltd (BABA), Alphabet Inc (GOOGL), Amazon.com Inc (AMZN), Facebook Inc (FB), Nvidia Inc (NVDA), Taiwan Semiconductor Manufacturing Co Ltd (TSM), Tesla Inc (TSLA)

Highlights

The presenter is short shares of Nvidia (NVDA), believing that a large part of the recent surge in NVDA demand and share price can be attributed to a combination of cryptocurrencies and good “storytelling” around autonomous driving, AI, and other “interesting” trends. He states that cryptocurrency demand is set to decline precipitously due to the rise of competing mining technologies, as well as fluctuations around cryptocurrency prices and the direction of future development. Thus far, initiatives around autonomous driving, AI, and enterprise datacenter/server applications have yielded lackluster results. As this dynamic becomes more apparent, sentiment, and therefore trading multiples, around NVDA can turn rapidly. He sees NVDA shares trading down to the $150 - $180 range over the course of 2018. Should cryptocurrency prices (particularly Bitcoin) see more significant declines, NVDA shares could trade down to the sub-$100 range as miners completely exit the market.

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Idea Discussion

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