The Financial Valuation of Nvidia Corporation

NVIDIA Corporation is a leading technology company specializing in designing and
developing accelerated computing system and other advanced processing solutions for the
gaming, professional visualization, data center, artificial intelligence (AI), and automotive
markets. The Company, with headquarters in Santa Clara, California, has around 22,473
employees and is present in 32 countries worldwide (as of January 30, 2022). NVIDIA
reported a revenue of $26,914 million (US dollars) for the fiscal year ending January 2022,
with a market capitalization of $611,171 million (US dollars) (NVIDIA Corporation,
2022), which makes NVIDIA one of the two biggest companies operating in the
semiconductors industry by market capitalization.

According to NVIDIA ́s Founder, President and CEO Jensen Huang, the Company can be
simply defined as:

“...we are a technology company that processes software for applications and domains of
science that are barely possible without us. And so, because of what we do, we can make
what is barely possible, possible. Or we can make something that is very energy consuming,
very efficient. Or we could turn something that costs lots of money and make it more
affordable. And so, we created this thing called accelerated computing, and that was what
we pioneered about three decades ago, and it ́s taken until now to really take off...”
(CNBC, 2023).

However, determining the fair value for a company operating in such an evolving
technology landscape can be challenging. Therefore, the present study aims to estimate the
intrinsic value of NVIDIA as of January 31st, 2022. The study begins with a thorough
review of the Company's profile, strategies, strengths, and weaknesses, followed by an
analysis of the industry and economic outlook. Finally, based on all the findings, three
valuation models will be used to estimate the intrinsic value of NVIDIA's shares as of
January 31st, 2022, and compare them to the market price on the same day.