Company Overview: NVIDIA
NVIDIA (NASDAQ: NVDA) is a leading American semiconductor and AI technology company. Since its founding in 1993, it has steadily grown across industries such as gaming, data centers, autonomous driving, and artificial intelligence, recently establishing itself as a global leader in AI chips and high-performance computing.
In the AI and deep learning market, the company leads with powerful GPUs like the A100 and H100, and collaborates with global tech giants including Microsoft, Amazon, and Google, driving rapid growth in data center and cloud infrastructure revenue. It is also recognized as a key player in emerging fields such as AI supercomputing, the metaverse, and generative AI.
Headquartered in Santa Clara, California, the company is expanding its global network of data centers and AI research hubs. It is actively investing in future technologies including the DRIVE autonomous driving platform, robotics, and the Omniverse.
The company is gaining prominence as a highly profitable and fast-growing player in the global AI semiconductor market, making it a strong candidate for long-term investment.
NVIDIA Financial Summary (2023–2025E)
NVIDIA has shown rapid growth across its key business segments, including AI, gaming, and data centers. The following table summarizes the company’s main financial indicators for the last three fiscal years.
| Metric | FY 2023 (2023.01.29) | FY 2024 (2024.01.28) | FY 2025E (2025.01.26) |
|---|---|---|---|
| Revenue (Million USD) | 26,974 | 60,922 | 130,497 |
| PER | 317.39 | 110.62 | 39.77 |
| PBR | 81.02 | 77.07 | 36.32 |
| EBITDA (Million USD) | 7,872 | 35,103 | 83,945 |
| EBIT (Million USD) | 7,820 | 33,595 | 82,052 |
| Pretax Income (Million USD) | 4,181 | 33,818 | 84,026 |
| Net Income (Million USD) | 4,368 | 20,590 | 72,880 |
| Earnings After Tax (Million USD) | 4,368 | 20,590 | 72,880 |
| Dividend Yield (%) | 0.02 | 0.03 | 0.03 |
| ROA (%) | 1.23 | 55.67 | 82.20 |
※ Source: Naver Finance – NVIDIA
(E) indicates estimates for the fiscal year.
Recent Performance Summary of NVIDIA
- Explosive Revenue Growth: Annual revenue surged from $26.97B in FY2023 to $130.5B in FY2025E, reflecting unprecedented demand for AI-related GPUs and data center solutions.
- Operating Profit and Net Income Skyrocket: Operating income (EBIT) and net income have both grown more than 15-fold in two years, reaching $82B and $72.88B respectively in FY2025E.
- Improved Profitability: NVIDIA’s EBITDA and EBIT margins show sharp improvement, demonstrating strong operational leverage as revenue scales.
- ROA Climbing Rapidly: Return on Assets (ROA) rose from 1.02% in FY2023 to an impressive 82.2% in FY2025E, showing high capital efficiency.
- Valuation Multiples Adjusting: PER and PBR have decreased significantly from FY2023 levels, potentially indicating a revaluation despite rising earnings.
- Dividend Still Modest: While the company maintains a low dividend yield (~0.03%), its strong cash flow leaves room for potential future shareholder returns.
vs Global Competitors Comparison
NVIDIA competes with global leaders in the semiconductor and technology sectors, such as AMD, Intel, and Qualcomm. Below is a comparison of key metrics among these major players.
| Category | NVIDIA | AMD | Intel | Qualcomm |
|---|---|---|---|---|
| Main Business | Graphics Processing Units (GPUs), AI | CPUs, GPUs | CPUs, Semiconductors | Mobile Processors, 5G |
| Recent Revenue (Billion USD) | 130.5 | 25.8 | 53.1 | 38.96 |
| Operating Margin (%) | 62.88 | 8.88 | -8.87 | 26.32 |
| P/E Ratio (Trailing 12 months) | 39.77 | 89.10 | N/A | 17.1 |
| ROE (%) | 119.18 | 2.89 | -18.31 | 42.25 |
| Strategy | AI, GPUs, Data Centers | CPUs, GPUs for PCs & Data Centers | PCs, Data Centers, Cloud Computing | Mobile, IoT, 5G |
※ Source: Official Reports and Financial Data from NVIDIA, AMD, Intel, Qualcomm.
Unique Strengths
- Global Market Leadership: NVIDIA competes in the global market with its leadership in GPUs and AI technology. The company continues to hold a strong position in the semiconductor industry.
- AI and GPU Focus: NVIDIA has a dominant presence in the GPU market, with products like the GeForce series and TITAN GPUs, along with its powerful AI software solutions driving demand.
- Continuous Innovation: The company consistently leads in cutting-edge technologies such as deep learning, cloud gaming, and the development of autonomous vehicles.
- Strong Gaming Ecosystem: NVIDIA’s GeForce NOW gaming platform, along with its GPUs, establishes the company as a leader in the gaming industry, particularly for PC gaming and cloud-based solutions.
- Strategic Partnerships and Acquisitions: Through strategic partnerships with leading companies like Microsoft and ARM, NVIDIA is strengthening its market position across multiple sectors including cloud computing and mobile technology.
- Focus on Sustainable Development: NVIDIA is committed to eco-friendly solutions and reducing carbon emissions through their AI-based smart technologies.
NVIDIA Investment Attractiveness
NVIDIA is recognized for its strong presence in the semiconductor and AI industries, with significant growth potential and strong financial performance. Below is a breakdown of its investment appeal across key metrics.
| Category | Score | Explanation |
|---|---|---|
| Value | 80 | The company has a strong market value, with a solid PER and PBR compared to peers in the industry. |
| Growth | 85 | NVIDIA is expanding with the growth of the EV and AI industries, with strong potential for continued growth in data centers and AI applications. |
| Profitability | 90 | The company maintains strong profitability with high operating margins and solid cash flows, reinforcing its long-term viability. |
| Stability | 80 | NVIDIA’s market stability is strengthened by its diversified product offerings in gaming, data centers, and automotive sectors. |
| Dividend | 0 | NVIDIA is a non-dividend-paying stock (미배당주), meaning it does not currently provide a dividend to shareholders. |
※ Source: NVIDIA Official Reports and Financial Data.
Recent Concerns About NVIDIA
Although NVIDIA is a leader in the semiconductor and AI sectors, it faces several concerns that investors are currently considering. Below are the main concerns in the current market environment:
- Electric Vehicle Sales Dependency: With increasing reliance on electric vehicle sales, the company’s future growth is tied to the success of the EV sector, which faces competition and regulatory challenges.
- Slowing Growth in the Chinese Market: Due to regulatory hurdles and declining demand for vehicles in China, NVIDIA faces potential revenue loss from one of the largest markets in the world.
- Fluctuating Currency Risks: The company is exposed to currency risks as global markets experience volatility, which could have adverse effects on profitability.
- Risk of Technological Obsolescence: With the rapid pace of technological change in AI and semiconductors, there is a constant risk of its products becoming outdated if new competitors emerge with more advanced technologies.
- Legal and Regulatory Issues: Ongoing investigations and potential legal challenges may negatively affect the company’s reputation and operational costs.
Overall Opinion on NVIDIA
NVIDIA is expected to maintain strong growth, especially in the electric vehicle (EV) and SUV markets, backed by a steady expansion in global electric vehicle adoption. The company is well-positioned to capitalize on trends such as AI, high-performance computing, and cloud services.
- Strong Position in Electric Vehicles and SUVs: NVIDIA’s focus on EV and SUV markets is expected to bring sustainable growth. Its AI and GPU technologies are pivotal in the development of next-gen vehicles.
- Market Leadership in AI and Data Centers: NVIDIA continues to dominate the AI, data center, and GPU industries, solidifying its status as a leader in these growing sectors.
- Risks and Concerns: Although the company is well-positioned in these industries, challenges like regulatory hurdles in different regions, competition in the EV space, and market volatility could impact performance. Still, NVIDIA’s high operating margin and innovative edge keep it on a growth path.
Conclusion: NVIDIA is a top player in the semiconductor and AI industries, with robust growth prospects. While market risks exist, its position in AI, EV technology, and global expansion makes it a strong investment in the long term.
※ This statement is for informational purposes only. Final investment decisions are the sole responsibility of the investor.
