NVIDIA Corp (NVDA, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising market position. With a current share price of $1,045.40 and a notable daily gain of 10.1%, NVIDIA Corp has demonstrated significant growth, with a three-month change of 32.98%. A detailed analysis, supported by the GF Score, indicates that NVIDIA Corp is poised for substantial future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently to calculate a comprehensive score ranging from 0 to 100, with 100 indicating the highest potential for outperformance. NVIDIA Corp has achieved a GF Score of 93, signaling strong future performance potential.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 6/10
Understanding NVIDIA Corp's Business
NVIDIA Corp, with a market cap of $2.57 trillion and annual sales of $60.92 billion, is a leading developer of graphics processing units (GPUs). Originally designed to enhance computing platforms, particularly in PC gaming, GPUs have evolved into critical components for artificial intelligence (AI) applications. NVIDIA not only produces AI GPUs but also offers Cuda, a software platform for AI model development and training. The company is expanding its presence in data center networking solutions, enhancing its ability to manage complex workloads.
Financial Strength Breakdown
NVIDIA Corp's financial robustness is evident in its impressive Interest Coverage ratio of 128.29, significantly surpassing the benchmark set by investing legend Benjamin Graham. The company's Altman Z-Score of 65.49 further underscores its financial stability, indicating a strong defense against financial distress. Additionally, its strategic debt management is reflected in a favorable Debt-to-Revenue ratio of 0.18.
Profitability and Growth Metrics
NVIDIA Corp's profitability is highlighted by its increasing Operating Margin, which has grown significantly over the past five years, reaching 54.12% in 2024. The company's Gross Margin also reflects a consistent upward trend, standing at 72.72% in 2024. These metrics not only demonstrate NVIDIA's efficiency in revenue conversion but also its competitive edge in the semiconductor industry.
Conclusion
Considering NVIDIA Corp's strong financial strength, impressive profitability, and robust growth metrics, the GF Score effectively highlights the company's unmatched position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
