| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 75.80 | -53 |
| Intrinsic value (DCF) | 1727.71 | 967 |
| Graham-Dodd Method | 15.00 | -91 |
| Graham Formula | 301.60 | 86 |
NVIDIA Corporation (NVD.DE) is a global leader in graphics, compute, and networking solutions, driving innovation in AI, gaming, and data center technologies. Headquartered in Santa Clara, California, NVIDIA operates in the high-growth semiconductor industry, providing cutting-edge GPUs for gaming, professional visualization, and autonomous vehicles. The company's Graphics segment includes GeForce GPUs for gaming and PCs, while its Compute & Networking segment delivers data center platforms for AI and high-performance computing (HPC). NVIDIA's strategic collaborations, such as with Kroger Co., highlight its role in transforming industries through AI and accelerated computing. With a market cap exceeding €2.8 trillion, NVIDIA is a dominant force in the tech sector, leveraging its expertise in GPU architecture and software ecosystems like Omniverse and NVIDIA AI Enterprise. The company's diversified product portfolio and strong R&D focus position it at the forefront of next-generation computing and AI-driven solutions.
NVIDIA presents a compelling investment opportunity due to its leadership in AI, gaming, and data center markets, supported by robust revenue growth (€130.5B in FY2025) and strong profitability (€72.9B net income). The company's high beta (2.114) indicates volatility but also reflects its growth potential in emerging tech trends like autonomous driving and AI infrastructure. Risks include cyclical semiconductor demand, geopolitical tensions affecting supply chains, and competition in AI hardware. However, NVIDIA's technological moat, strong cash flow (€64.1B operating cash flow), and strategic positioning in high-margin segments make it a key player for long-term investors seeking exposure to AI and advanced computing.
NVIDIA's competitive advantage stems from its dominant market share in GPUs, proprietary CUDA architecture, and early-mover advantage in AI acceleration. The company's integration of hardware and software (e.g., Omniverse, AI Enterprise) creates sticky customer ecosystems, particularly in data centers and gaming. NVIDIA's acquisition of Mellanox strengthened its networking capabilities, differentiating it from pure-play GPU competitors. However, rivals like AMD and Intel are aggressively targeting its datacenter GPU market with alternative architectures. NVIDIA's automotive segment faces competition from Mobileye and Qualcomm, while its gaming GPUs contend with AMD's Radeon series. The company's scale in AI training (e.g., A100/H100 chips) remains unmatched, but open-source AI frameworks and custom silicon (e.g., Google TPUs) pose long-term threats. NVIDIA's ability to maintain its innovation pace and monetize AI software will be critical in sustaining its edge.