Was riding a cycling last week Nvidia(NASDAQ: NVDA)A number of February 26 earned the shares fell by 8.5%, and on Friday, almost half of that loss restored.
When the dust settled, the shares were only 1.4%, the sign that investors were somewhat neutral on the recent NVIDIA printing, guidance and management interpretation.
Wall Street can be loved with quarterly results and highlights of basic measurements. It is a better approach to watch quarterly results in the context of a common investment thesis.
Here are five reasons why NVIDIA stays on top of her game and is growth fund It’s worth buying now.
Image source: Getty Images.
In recent years, NVIDIA exponential growth could not be increased without graphics processing subdivisions (GPUS).
The 10-K’s annual report on his fiscal (ended on January 26), Nvidia said.
These anonymous companies are likely to be hyper-workers such as ContricolativeTo be in style Microsoft:To be in style Alphabetand Meta Platforms: – Everyone is famous NVIDIA customers and there are Capital Expenditure (Capex)During a number of current fiscal years, the meta was led to $ 65 billion, the alphabet predicts $ 75 billion, Microsoft plans about $ 100 billion.
Meta is building AI infrastructure for its manufacturers to improve its inserts and for the main platform of Instagram. At the same time, Amazon Web Services, Microsoft Azure and Google Cloud use the calculation of NVIDIA chips to expand their large-scale data centers.
Before the dependence of Nvdia, just a few companies can be considered a risk, it is also an advantage, because they are reliable buyers with deep pockets. These companies have resources that include even a cyclical slower while small players can be so flexible.
One of the biggest threats of the NVIDIA business model is competition. The cruel competition could be eaten in the rise and lines of high levels of Nvidia. But it hasn’t happened so far.
Advanced micro devices Continues to predict exponential growth in its data center in GPU business, especially since it can take a market share from NVIDIA, low by calculating high levels. But so far the dram does not justify, and its stock price reflects the disappointment of investors. The dram hovers in 52 weeks lower than 55% higher than March last year.
In comparison Broadband AI is experiencing exponential growth, especially integrated integrated application schemes (asics). Asics is adapted for special tasks and can be less expensive than GPUs. But Broadcom is as clean as Nvidia. Instead, it is a diversified network company that has a rapidly growing AI.
Whereas Staff could not sprinkle in the GPU market.
NVIDIA’s ability to attract a larger percentage of AI costs is the testament to its elite products portfolio and continued innovation. The latest chip of Blackwell – NVIDIA, which is intended for AI and data centers, has reached $ 11 billion in the last quarter, which carries the fastest product ramp. Instead of sitting and enjoying their success, Nvidia continues to push the limits of new products. It’s a great sign that it can maintain its sovereignty even if there is a cyclical slander.
If possible, one cause of NVIDIA can be sold on the report on the reporting report, a knee-stunning response was on gross margins.
For the last quarter of the last quarter of 2025, NVIDIA reported 73% gross margins. It decreased compared to the same quarter of the 2024 fiscal quarter compared to the three percentage points. But throughout the year, the gross margin was 75% compared to 72.6% of the 2026 tax.
The lower margins have nothing to do with any business fractures. Since Nvidia Cfo Colette Kress explained about the recent earnings call:
Our gross margins during our Blackwell Ramp will be in the lower 70’s. At the moment, we focus on accelerating our production to make sure we can provide customers as soon as possible. When our Blackwell is a complete stage, we can improve our value and our gross margin. So we expect to be likely to be in the mid-190s of this year.
Margins were an integral party to NVIDIA’s investment thesis. High margins allow the company to transform more than 60% of sales by making operating income, making a very profitable business.
As you can see on the chart, NVIDIA has grown sales, working margins and the diluted earnings of two shares over the past few years.
This impressive growth is why NVIDIA remains a good value, despite its share wine.
NVIDIA, of course, is difficult to value. The share is a transaction if it maintains its growth, even lower interest rates. But if the competition spends the fizzles, cycles slowdown or models that need fewer calculations, then NVIDIA could be overestimated.
Some of these uncertainty is probably already the price of Nvdia. NVIDIA Sports A 27.8 Primary Price-earned (P / E) ratio – below Amazon, Apple, Broadcom and Microsoft.
Chip companies like Taiwanese semiconductor production and the dram is cheaper than NVIDIA on the basis of primary earnings. But Mega-Cap Tech Company or Chip Company has a combination of NVIDIA industry domination, income growth and margins.
NVIDIA has completed $ 2025 for $ 8.6 billion in cash and $ 34.6 billion, and only $ 8.5 billion in a long-term debt.
NVIDIA’s interest was $ 866 million worth $ 866 million to $ 2024 to $ 2024, as it has aroused more interest in its assets. Thus, the company not only has a net cash position, it also brings interest rates income instead of paying interest rate costs. Meanwhile, high interest rates have a negative impact on companies whose capital structure depends on debt.
The NVIDIA rock-solid balance is especially impressive, taking into account the ramp of its products. NVIDIA does not take debt to develop products in the hope they are repaid. Instead, it creates a lot of money on the product of high margin, which can allow new innovations like Blackwell, such as business, not debt. This is a massive advantage for NVIDIA competition, especially if there is a cyclical decline, as NVIDIA can continue to push the limits of science and technology. Companies with poorer financial health cannot do it.
NVIDIA continues to be a non-brain buyer to ensure that investors trust is confident in the long-term AI. Even if the growth of sales and margins gradually fall, NVIDIA can still be a great value because stocks are not expensive.
Investors have a five-year five-year investment time to NVIDIA closer. However, it is worth remembering that the stock price can continue very unstable, so the risk tolerance and patience are dominated.
Before buying a share in NVIDIA, consider this:
Is MOTLEY FOOL STOCK ADVISOR Analyst team just found out what they believe 10 Best Shares: To buy for investors now, Nvidia was not of them. The 10 shares performing the cut can return to the monster in the coming years.
Consider when Nvidia This list did on April 15, 2005 … If you have invested $ 1,000 at the time of our proposal, You will have $ 718,876! *
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RANDI UCK UCKBERG, Former Market Development Director and CEO of Facebook and Sister Mark Zukeberg is a member of Motley Fool’s board. John Makay, the former General Director of the All Food Market, is a member of the Board of Directors of Motley Fool. The Executive Susan Frait, Executive Susan Frait, is a member of the Motley Fool Board. Daniel Foelber does not have any of the specified shares. Motley Fool has positions and progresses advanced micro devices, alphabet, Amazon, Apple, Intel, Meta Platforms, Microsoft, Nvidia and Taiwan. Motley Fool offers Broadcom and offers the following options: Motley Fool has Discovery Policy:A number
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