While all eyes are pointed towards tech giants such as Alphabet (GOOGL) or Microsoft (MSFT), NVIDIA Corporation (NVDA) is quietly but steadily holding its position in the market. For investors who haven’t taken a look at NVIDIA recently, they may be overlooking an opportunity for solid growth, as NVDA seems to be a stock worth accumulating.
NVIDIA is a silicon-valley based company that specializes in the manufacture of graphics processing units (GPUs), AI, and numerous computing technologies. The GPUs segment, in particular, is thriving as it’s widely used in gaming, cloud computing, virtual reality, and autonomous vehicles. The company is able to intersect technology and innovation across multiple industries, making it a considerable force in the market.
Fundamentals of NVDA are very robust. The company boasts a burgeoning revenue stream, an impressive balance sheet, and a compelling growth story. In the Q3 of 2021, NVIDIA achieved a record revenue of $7.1 billion, up 50 percent from a year earlier. Also, NVDA’s consistent performance and strong financial footing allow the company to explore growth opportunities while providing resilience in the face of market downturns.
Moreover, NVIDIA’s market share in the GPU segment is impressive. According to a report by Jon Peddie Research, NVIDIA had a market share of 80% in the discrete GPU market segment during Q3 2020. This clearly shows NVIDIA’s dominance and strong foothold in the GPU market, thanks to its superior product offerings that are better than rivals in terms of both quality and performance.
Another reason that makes NVDA a strong hold is its dominant position in the AI field. NVIDIA’s GPUs are used in data centers, autonomous vehicles, and robotics, driving the AI revolution. With the increasing adoption of AI technologies across various industries, from healthcare to finance, NVIDIA’s growth in this sector is likely to boost further.
In terms of stock performance, NVDA’s stock has been a consistent performer in the past five years, providing a respectable return to its investors. Despite economic turbulence and the global pandemic, NVDA shares have shown great resilience. Its stock soared by more than 100% in 2020 alone, significantly outperforming the Zacks Semiconductor-General industry’s increase of 55.7% over the same period.
While NVIDIA faces stiff competition from AMD and Intel Corp, it holds a strong position with its continuous product innovation and strategic partnerships. Recently, it announced a collaboration with NIO, a Chinese electric vehicle manufacturer, which further diversifies its portfolio and increases its exposure to the burgeoning EV market.
Even with high competition, NVDA shows no slowing down in terms of making strides in their product development and business partnerships. This will undoubtedly create a more robust portfolio that potentially increases the company’s growth prospects in the times ahead.
In conclusion, NVIDIA Corporation holds a strong position in the market and continues to deliver solid performances. With its robust fundamentals, dominant market presence, impressive growth story, and exciting future prospects, NVDA is a stock that investors should consider accumulating for their portfolio. Therefore, pay close attention to NVDA, it may be the growth stock you are looking for.
