Nvidia Corporation stands at the forefront of computer graphics and AI technology, with its hardware, software, and solutions revolutionizing industries such as data centre and cloud computing, design and simulation, and high-performance computing. A pivotal question for investors and tech enthusiasts alike is, how much is Nvidia worth, considering its expansive global presence marked by 7,500+ granted and pending patent applications and a staggering $1 trillion available market opportunity?
The company’s robust financial framework is supported by a thriving developer community of 3 million in the NVIDIA Developer Program and 10,000 global startups through NVIDIA Inception, further solidifying its market position. Exploring Nvidia’s market cap, revenue, worth, and profit offers a comprehensive insight into its financial health and future potential, essential for understanding the full scope of how much is Nvidia worth.
NVIDIA Net Worth
On 19th June 2024, NVIDIA is ranking at #1 in with a market cap of $3.335 T surpassing Microsoft, Apple, & Google & net asset of $49.14 B.
Understanding NVIDIA’s Net Worth Dynamics:
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- Net Worth Insights:
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- Week 52-2023: NVIDIA’s net worth reached an impressive peak of $1.233 trillion, highlighting a period of significant financial growth and market dominance.
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- Q3-2024: A slight adjustment is observed with the net worth at $1.017 trillion, reflecting the dynamic nature of market valuations and NVIDIA’s ongoing financial performance .
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- Net Worth Insights:
This section delineates NVIDIA’s financial stature through key metrics like market capitalization and net worth over specified time frames, providing a clear, quantifiable measure of the company’s worth and its fluctuations within the competitive landscape.
Historical Financial Performance
Nvidia’s Historical Financial Performance illustrates a trajectory of significant growth and resilience in the face of market fluctuations. Key financial highlights include:
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- Annual Revenue Growth:
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- From 2020 to 2024, Nvidia experienced a remarkable increase in annual revenue, starting from $10.918 million in 2020 to a monumental $60.922 billion in 2024 . This growth trajectory showcases a compound annual growth rate (CAGR) that highlights Nvidia’s expanding dominance in the tech industry.
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- The year-over-year revenue for the quarter ending January 31, 2024, stood at $22.103 billion, marking a 265.28% increase, which is indicative of Nvidia’s capability to significantly boost its financial performance within a short period .
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- Annual Revenue Growth:
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- Net Income Surge:
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- Nvidia’s net income for the twelve months ending January 31, 2024, was $29.760 billion, a staggering 581.32% increase from the previous year. This surge underscores the company’s profitability and operational efficiency.
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- The net income for the quarter ending January 31, 2024, further emphasizes this point, with a 768.88% increase year-over-year, reaching $12.286 billion.
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- Net Income Surge:
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- Asset Growth:
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- As of January 2024, Nvidia’s net assets were valued at $42.97 billion, reflecting a robust financial position and the ability to sustain and invest in future growth.
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- Asset Growth:
These financial metrics not only demonstrate Nvidia’s strong market position but also its potential for sustained growth and innovation. The company’s revenue and profit increases are particularly noteworthy, highlighting its success in navigating the competitive tech landscape and capitalizing on emerging opportunities in AI and high-performance computing
Comparison with Competitors
In the competitive landscape of AI chips, Nvidia emerges as a dominant force, commanding over 70% of the market share. This significant lead contrasts with AMD’s slower growth, despite the recent announcement of its MI300X chip, poised to enhance its standing in the AI domain. Intel, on the other hand, faces challenges marked by yearly revenue declines and negligible presence in the AI chip market, compounded by operational setbacks with its Sapphire Rapids processor.
Market Share Dynamics in GPU Shipments (Q2 2023):
- Overall GPU Shipments: Intel leads with 68%, followed by Nvidia at 18%, and AMD at 14%.
- Discrete GPU (dGPU) Shipments: Nvidia dominates with 87%, while AMD and Intel hold 10% and 3%, respectively.
- Integrated GPU (iGPU) Market: Intel commands 84% of the market, leaving AMD with a 16% share.
Financial and Operational Highlights:
- Compute-Optimized GPU Shipments: Nvidia’s shipments exceed 300K units, dwarfing Intel and AMD’s 10-20K units, indicating Nvidia’s strong position in high-performance computing.
- Stock Performance and Valuation: AMD’s stock has surged by 117% over the last 12 months, contrasting with Intel’s 12% decline post-Q4 2023 earnings release. AMD’s forward P/E ratio stands at approximately 48, suggesting a premium valuation compared to Intel’s 32, indicative of potential growth opportunities.
- Supercomputing and Data Center Competition: Nvidia’s technology powers 23 of the top 30 systems on the Green500 list and holds a significant presence in the TOP500 list, reflecting its influence in the supercomputing arena. Despite this, Nvidia faces stiff competition from Intel and AMD in the data center market, a crucial area of growth and innovation.
Future Projections and Challenges
Nvidia’s future projections and challenges are multifaceted, reflecting both the company’s ambitious growth targets and the obstacles it may face. Key insights include:
- Revenue Projections for Key Segments:
- Gaming: Expected to reach $11.2 billion, showing a 12% year-over-year growth.
- Data Center: Anticipated to hit $16.5 billion, marking a 25% year-over-year increase.
- Automotive: Projected to grow to $1.2 billion, a 15% increase from the previous year.
- Professional Visualization: Estimated to achieve $4.6 billion, a 14% year-over-year growth.
- Sustainable Computing and Energy Efficiency:
- Nvidia’s accelerated computing is hailed as a more energy-efficient alternative to traditional CPU computing, capable of tackling complex problems unsolvable by normal computers.
- The company estimates that switching worldwide CPU-only servers to GPU-accelerated systems could save nearly 20 trillion watt-hours of energy annually.
- Nvidia GPUs are noted to be 20X more energy efficient for certain AI and HPC workloads compared to traditional CPUs.
- Challenges and Risks:
- A significant drop in data center sales to China poses a potential challenge.
- The gaming industry’s cyclical nature and potential regulatory changes could impact Nvidia’s reliance on this segment.
- Nvidia’s planned acquisition of Arm faces regulatory hurdles, which could affect financial projections.
This section underscores Nvidia’s strategic focus on sustainable computing and energy efficiency, alongside its ambitious revenue growth targets across key segments. However, it also highlights the challenges Nvidia may encounter, including regulatory hurdles and market volatility.
FAQs
What is NVIDIA’s current market capitalization?
NVIDIA Corporation has a market capitalization of 2.3 trillion USD. The current stock price of NVDA is 944.7242 USD, which is 40% higher than its intrinsic value calculated at 565.3665 USD.
What are the future value projections for NVIDIA stock?
Wall Street consensus estimates, derived from 60 analysts, predict that NVIDIA’s stock has a median one-year price target of 970 USD. This projection is very close to the stock’s recent price of 962 USD, suggesting that it may be fully valued at present.
How much is NVIDIA’s net worth as of March 2024?
As of March 26, 2024, NVIDIA Corporation boasts a net worth, or market cap, of 2.38 trillion USD, marking a significant increase of 273.78% over the course of a year.
How does NVIDIA’s relative valuation compare to its stock price?
The relative valuation of NVIDIA Corporation, as of March 20, 2024, stands at 341.97 USD, based on price-to-earnings (P/E) multiples. Considering the latest stock price at 893.98 USD, NVIDIA’s stock shows a downside of -61.7% when evaluated against this relative valuation metric.
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