NVIDIA Corp.
SemiconductorsThe chips behind the AI boom
$874.32 +3.33% today · Market cap $2.14T
Step 1 · The business
What does it do?
NVIDIA designs graphics processors (GPUs). Once mainly for gaming, its chips are now the main engine used to train and run AI models in data centers.
How it makes money
Share of yearly revenue
Step 2 · The case for
Why might investors care?
What people like about it, then how the business is doing — each number in plain words.
- Leading position in AI chips
- Software ecosystem developers rely on
How it's doing
Revenue growth
Sales grew 120% over the past year.
Large companies often grow 3–10% a year.
Profit margin
It keeps about $49 of profit from every $100 of sales.
Varies by industry: retailers ~3%, software 30%+.
Price / earnings (P/E)
Investors pay $70 for each $1 of yearly profit.
The S&P 500 average is around 20–25×.
Dividend yield
Pays a token dividend — a few cents a year per $100 of stock.
Steady, mature companies often pay 2–4%.
Step 3 · The case against
What could go wrong?
The risks people point to, and how bumpy owning it can be.
- Results depend on a few very large customers
- High expectations already in the price
Typical yearly swing
In a typical year the price might end ~52% above or below where it started.
The S&P 500 swings about 17% a year.
If the market fell 15%
A broad 15% fall would move NVDA about 15% in MAVEST's scenario model.
A learning scenario, not a forecast.
Debt level
Little debt, so less pressure when times are tough.
Step 4 · Your turn
Before you decide
Questions worth answering for yourself — there are no right answers.
- 178% of sales come from data center. What happens if that slows down?
- 2At a P/E of 70, investors expect a lot of growth. What would happen to the price if growth disappoints?
- 3It moved up 3.3% today. Would you still be interested if it hadn't?
- 4It typically swings about 52% a year. Could you hold on through a 30% drop?
In your portfolio
You haven't built a practice portfolio yet. Thinking this through starts one, or open Portfolio Lab.
Starts the Decision Coach · practice money · you choose the amount
Price history
Simulated history on mock data. A price move alone isn't a reason to decide.
$874.32+3.33% today
+21.48% over 1Y · Market cap $2.14T
What others are thinking
Reasoning shared by other learners — not tips.
No one has shared research on NVDA yet. Yours could be the first.
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