Is NVIDIA safe investment.
4/17/2025 10:38pm
**NVIDIA appears to be a relatively safe investment**, and here's why:
1. **Strong Financial Performance**: NVIDIA's financials are robust, with significant growth in revenue and net income. The company's revenue growth rate is 77.94%, and its net income growth rate is 79.82%. The Diluted Earnings Per Share (EPS) has grown by 81.63%, indicating a strong profitability trend.
|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|NVDA|NVDA.O|Nvidia|2025 Q1|628.3896231032795|262.1245828698554|629.2682926829268|185|
|NVDA|NVDA.O|Nvidia|2025 Q2|168.24499030381384|122.40319834160064|168.00000000000003|185|
|NVDA|NVDA.O|Nvidia|2025 Q3|108.90403548631397|93.6092715231788|110.8108108108108|185|
|NVDA|NVDA.O|Nvidia|2025 Q4|79.82091982091983|77.9441704745962|81.63265306122449|185|
2. **Healthy Cash Flow**: NVIDIA has a positive free cash flow of $15.55 billion, which is a good indicator of the company's ability to generate cash after capital expenditures. This is crucial for maintaining financial health and investing in growth opportunities.
|code|Ticker|Name|Date|Free Cash Flow|Investing Cash Flow|Operating Cash Flow|Financing Cash Flow|market_code|
|---|---|---|---|---|---|---|---|---|
|NVDA|NVDA.O|Nvidia|2025 Q1|-6.215056504E9|-5.693E9|1.5345E10|-9.345E9|185|
|NVDA|NVDA.O|Nvidia|2025 Q2|3.191129265E9|-3.185E9|1.4489E10|-1.032E10|185|
|NVDA|NVDA.O|Nvidia|2025 Q3|2.140649272E10|-4.345E9|1.7629E10|-1.2748E10|185|
|NVDA|NVDA.O|Nvidia|2025 Q4|4.1808181937E10|-7.198E9|1.6628E10|-9.948E9|185|
3. **Dividend Yield**: Although NVIDIA's dividend yield is relatively low at 0.04%, the company has recently increased its dividend, which could be a sign of a commitment to returning value to shareholders.
|code|Ticker|Name|Date|Payout Ratio|Dividend Yield (TTM)|market_code|
|---|---|---|---|---|---|---|
|NVDA|NVDA.O|Nvidia|20240417|0.18346378946521108|0.1914607008984352|185|
|NVDA|NVDA.O|Nvidia|20240418|0.18346378946521108|0.19002255790057987|185|
|NVDA|NVDA.O|Nvidia|20240419|0.18346378946521108|0.2111469816272966|185|
|NVDA|NVDA.O|Nvidia|20240420|0.18346378946521108||185|
|NVDA|NVDA.O|Nvidia|20240421|0.18346378946521108||185|
|NVDA|NVDA.O|Nvidia|20240422|0.18339030563312553|0.20233657788173748|185|
|NVDA|NVDA.O|Nvidia|20240423|0.18339030563312553|0.1952052218434175|185|
|NVDA|NVDA.O|Nvidia|20240424|0.18339030563312553|0.20193280369491823|185|
|NVDA|NVDA.O|Nvidia|20240425|0.18339030563312553|0.19471149191596476|185|
|NVDA|NVDA.O|Nvidia|20240426|0.18339030563312553|0.18338633384624153|185|
4. **Market Position and Innovation**: NVIDIA is a leader in the AI and accelerated computing space, with innovative products like the H100 and A100. The company's strategic investments in AI supercomputers and its expansion into the United States amid tariff exemptions suggest a forward-looking growth strategy.
5. **Analyst Confidence**: The consensus from analysts is positive, with an average brokerage recommendation of "Outperform" and a high GF Score, indicating strong financial strength and profitability metrics. The average one-year price target suggests a significant upside potential.
6. **Valuation Metrics**: NVIDIA's P/E ratio is 33.58, which is relatively high, but this could be justified by the company's high growth prospects. The company's P/S ratio is 19.54, which is lower than some peers, suggesting that the stock may be undervalued based on sales.
|code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code|
|---|---|---|---|---|---|---|---|
|NVDA|NVDA.O|Nvidia|20240417|69.569644|0|48.88256782539904|185|
|NVDA|NVDA.O|Nvidia|20240418|70.096167|0|49.252524547442874|185|
|NVDA|NVDA.O|Nvidia|20240419|63.083321|0|44.325003490157755|185|
|NVDA|NVDA.O|Nvidia|20240422|65.830178|0|46.25506072874494|185|
|NVDA|NVDA.O|Nvidia|20240423|68.235126|0|47.944878775187306|185|
|NVDA|NVDA.O|Nvidia|20240424|65.961808|0|46.347549909255896|185|
|NVDA|NVDA.O|Nvidia|20240425|68.40815|0|48.066452603657694|185|
|NVDA|NVDA.O|Nvidia|20240426|72.632745|0|51.0348317743962|185|
|NVDA|NVDA.O|Nvidia|20240429|50.67673|0|51.04762901949835|185|
|NVDA|NVDA.O|Nvidia|20240430|49.894263|0|50.25943505979804|185|
However, it's important to note that no investment is completely free from risk. Factors such as market volatility, geopolitical tensions, and regulatory changes can impact stock prices. Investors should consider their risk tolerance and investment horizon before making any investment decisions.
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