NVIDIA CorporationNVDA

Morningstar Rating

Stock Research and Analysis

by Andy Ng

Nvidia is a leading player in the graphics processor market. We think that the firm will face increasing headwinds, as the stand-alone graphics chip market risks being cannibalized. However, Nvidia has been seeking new avenues to grow its business.

Nvidia Read more

Bulls Say

Supercomputing processors based on Nvidia's graphics chips present the firm with a potentially massive growth opportunity.

The growing popularity of video game consoles has been benefiting Nvidia. The firm supplies the graphics chips used in the Sony SNE PlayStation 3.

The increasing complexity of graphics processors provides a barrier to entry for most potential rivals, since it would be difficult to match Nvidia's large R&D budget.

Nvidia outsources chip production, enabling it to concentrate on design and avoid high capital spending. Read more

Bears Say

Rapid product cycles and heavy competition make it difficult for Nvidia to sustain its lead over rival AMD.

Intel's efforts to enter the high-end graphics segment pose a threat to Nvidia.

A majority of sales are derived from the maturing PC industry.

Nvidia's Tegra processor faces plenty of competition, as numerous chipmakers have offerings targeting handheld devices. Read more

Strategy

The firm's main strategy is to be the innovation leader in graphics through R&D investment. Nvidia develops different generations of products concurrently to stay ahead of the curve. The company Read more

Management

CEO Jen-Hsun Huang co-founded Nvidia in 1993 after stints at LSI Logic LSI and AMD. Huang continues to hold a major stake in the firm and controls about 5% of the total shares outstanding. David White became CFO in March 2009, replacing Marvin Burkett, Read more

Profile

Nvidia is a leading designer of graphics chips that enhance the interactive experience on computing platforms. The firm's chips are used in a variety of products including Read more

First Name

Last Name

Email Address

Zip Code

Create Password

Verify Password

(6-15 characters; case sensitive)

What is your occupation or job title?

Select...

Your registration indicates agreement to the terms of use.

Dodge & Cox: Valuations Attractive in Technology
Watch more