Guru Julian Robertson (Trades, Portfolio) sold out his holdings in Nvidia Corp. (NVDA, Financial) in the third quarter.
Robertson is a legendary billionaire investor and founder of Tiger Management, which netted an average return of 32% from 1980 to 2000.
Nvidia is also traded in Germany, Mexico and Switzerland.
Nvidia was originally founded in California in April 1993 by Jen-Hsun Huang, Chris Malachowsky and Curtis Priem. The company is the world leader in visual computing and is ranked 553 among Fortune 600 companies, improving from last year's ranking of 589, according to Forbes.com. Nvidia focuses on specialized platforms and products for gaming, professional visualization, data center and automotive markets. Nvidia is also working to improve on virtual reality, artificial intelligence and self-driving cars.
Nvidia has a market cap of $17.73 billion, a P/E ratio of 30.50, an enterprise value of $14.42 billion and a dividend yield of 1.20.
Below is a Peter Lynch chart for Nvidia.
According to GuruFocus Nvidia has one severe warning sign.
Asset growth is faster than revenue growth. If a company builds asset at 7.4% a year, faster than its revenue growth rate of 6.1% over the past five years, it means that the company may be getting less efficient.
Despite the asset growth being higher than revenue growth, Nvidia has been gaining momentum over the past 12 months. The stock price has risen close to 60% in the last year. It also set company records for the third quarter of 2016 with $1.305 billion in revenue, up 13% from $1.153 billion in the previous quarter. Nvidia also raised its quarterly cash dividend 18% to 11.5 cents per share. The company will return $1 billion to shareholders in fiscal 2017.
Cheers to your investment success.
