The NVIDIA Corporation (NVDA) is growing like mad. For example, Stockrow estimates NVIDIA’s revenues grew by 68.31% in the quarter ending on 31 July 2021 and 83.8% in the quarter ending on 30 April 2021.
Consequently, NVIDIA’s revenues grew from $3.866 billion on 31 July 2020 to $6.507 billion on 31 July 2021. Similarly, NVIDIA’s quarterly gross profit grew from $2.275 billion to $4.215 billion in the same period. Additionally, the quarterly operating income grew from $651 million on 31 July 2020 to $2.444 billion on 31 July 2021.
Moreover, NVIDIA (NASDAQ: NVDA) experienced double-digit revenue growth in all six quarters of the pandemic. NVIDIDA began the pandemic with revenue growth of 38.7% in the quarter ending on 30 April 2021.
The Incredible GPU Market Growth
NVIDIA (NASDAQ: NVDA) is experiencing incredible because the enormous demand for its principal product: graphics processing units.
The GPU market grew by 38.74% in the first quarter of 2021, WCCFTECH estimates. NVIDIA was the third-largest GPU manufacturer with a market share of 15.21% in the second quarter of 2021, Statista estimates. The largest GPU maker was Intel with a 68.29% market share. Meanwhile AMD had a 16.48% market share.
NVIDIA’s are the most popular and powerful on market. In fact, the NVIDIA RTX graphics cards are so popular,l thieves stole a truckload of them in California in November 2021, GameRant reports. Notably, German GeForceRTX 30 prices were 70% higher than standard pricing on 19 September 2021, NME estimates.
NVIDIA had an 83% share of the standalone (discreet) graphics card market in the 4th Quarter of 2020, Jon Peddle Research estimates. Hence, NVIIDA owns large segments of the graphics card market.
How Much Money is NVIDIA Making?
NVIDIA (NVDA) is generating more cash. The quarterly operating cash flow grew from $1.567 billion on 31 July 2020 to $2.682 billion on 31 July 2021.
Notably, NVIDIA reported a quarterly ending cash flow of $4.65 billion on 31 July 2021. The quarterly ending cash flow grew from -$12.22 billion on 31 July 2020.
However, NIVIDA borrows enormous amounts of money. NVIDIA reported a quarterly financing cash flow of $4.501 billion on 31 July 2021. NVIDIA’s total debt grew from $7.695 billion on 31 July 2020 to $12.791 billion on 31 July 2021.
Impressively, NVIDIA’s cash and short-term investments grew from $10.981 billion on 31 July 2020 to $19.782 billion on 31 July 2021. Hence, NVIDIA finished the first 14 months of the pandemic with more debt and more cash.
NVIDIA Gained Enormous Value During the Pandemic
Notably, NVIDIA’s total assets grew from $25.18 billion on 31 July 2020 to $38.65 billion on 31 July 2021. Thus, NVIDIA (NASDAQ: NVDA) added enormous amounts of value during the pandemic.
Additionally, NVIDIA’s share value grew from $127.70 on 10 November 2020 to $303.90 on 12 November 2021. I think the financial numbers justify the $303.90 share price.
Plus NVIDIA will pay four 4¢ quarterly dividends over the next year. However, that quarterly dividend shrank from 16¢ on 9 June 2021 to 4¢ on 31 August 2021. Overall, NVIDIA shares offered a forward dividend of 16¢ and a forward dividend yield of 0.05% on 9 November 2021.
I think NVIDIA is one of the best tech and value stocks around despite the low dividend. If you want a growing stock that generates enormous amounts of cash, NVIDIA (NVDA) is worth investigating.
I advise investors to investigate NVIDIA because I think NVIDIA’s growth is sustainable. If you want a value investment for the 21st Century that will offers growth and cash, NVIDIA is a stock for you.
In conclusion, I consider NVIDIA the best tech hardware stock. If you want to profit from gaming, artificial intelligence, data centers, robotics and other technologies you need NVIDIA in your portfolio.