Nvidia: limitless potential for a limitless era of technology

• Autor(a) principal: Moiteiro, Gonçalo Amaral
• Data de Publicação: 2021
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/143034
• topic: Covid-19; Cryptocurrency; Autonomous vehicles; Equity research; Gaming; Share price; Artificial intelligence; Cloud computing; Iot; Acquisition; Crypto; Investment thesis; Nvidia; Gpu; Apv; Data Center; Semiconductor; Arm limited; Mellanox; Intel; Amd; Cpu; Socs; Chips; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

Nvidia is a US-based company that operates in the semiconductor industry, specialized in the design and manufacturing of GPUs. The company has seen staggering returns in the last year compared to the S&P500 benchmark, with total cumulative returns of nearly 140% since January 2021.This Equity Research aims at valuing the company’s stock price as of December 2022using the Adjusted Present Value (APV) model. The main catalysts identified are the fast-growing gaming popularity, Facebook’s Metaverse, strong demand from corporations for Data Center applications, the $8B design win pipeline in Automotive, and new CMP product offering directed at crypto miners. Nvidia’s acquisition of Arm is still pending approval, and we don’t expect the transition to materialize until the March 2022 deadline. Our APV valuation indicates a FY23 price target of $285,52 per share, resulting in a HOLD recommendation and an upside potential of 1,39% from the market close share price of $281,61 as of December 13, 2021. Total shareholder return is 1,14% for an investor holding the stock throughout 2022.