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NVIDIA Corp NVDA

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1-Star Price

PREMIUM

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PREMIUM

Economic Moat

PREMIUM

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PREMIUM

Nvidia’s Growing Data Center Prowess Warrants a Wide Economic Moat; Raising FVE to $550

Abhinav Davuluri, CFA Sector Strategist

Analyst Note

| Abhinav Davuluri, CFA |

After taking a fresh look at our thesis on Nvidia, we are raising our moat rating to wide from narrow thanks to intangible assets related to the design of graphics processing units, or GPUs. Nvidia has focused on expanding opportunities for its GPU technology beyond PCs, which we think are making the firm’s intellectual property around GPU design increasingly valuable. Collectively, these applications represent multiple avenues for Nvidia to advance its IP and remain at the cutting edge for GPU technology and give us confidence in the long-term sustainability of the firm’s competitive advantages.

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Company Profile

Business Description

Nvidia is the leading designer of graphics processing units that enhance the experience on computing platforms. The firm's chips are used in a variety of end markets, including high-end PCs for gaming, data centers, and automotive infotainment systems. In recent years, the firm has broadened its focus from traditional PC graphics applications such as gaming to more complex and favorable opportunities, including artificial intelligence and autonomous driving, which leverage the high-performance capabilities of the firm's graphics processing units.

Contact
2788 San Tomas Expressway
Santa Clara, CA, 95051
T +1 408 486-2000
Sector Technology
Industry Semiconductors
Most Recent Earnings Apr 30, 2021
Fiscal Year End Jan 30, 2022
Stock Type Cyclical
Employees 18,975

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