Does Nvidia have a lot of debt?
Total debt on the balance sheet as of April 2024 : $11.23 B
How Much Debt Does NVIDIA Carry? You can click the graphic below for the historical numbers, but it shows that NVIDIA had US$9.71b of debt in April 2024, down from US$11.0b, one year before. However, its balance sheet shows it holds US$31.4b in cash, so it actually has US$21.7b net cash.
As of Apr. 2024, NVIDIA's interest expense (positive number) was $255 Mil. Its total Book Value of Debt (D) is $11270.8 Mil. Cost of Debt = 255 / 11270.8 = 2.2625%.
Nvidia stock's longer-term performance is phenomenal
That's more than 100 times the S&P 500 index's return of 230%. Put another way, a $1,000 investment in Nvidia stock a decade ago would now be worth more than $250,000. A stock's past performance is no guarantee of its future performance.
NVIDIA Debt to Equity Ratio: 0.1976 for April 30, 2024.
Hence, based on current estimates, the chances of Nvidia's share price crossing $1,000 in the next decade appear slim. These projections, however, can change in case Nvidia makes even more dramatic advances in AI technologies in the coming years.
NVIDIA (NASDAQ: NVDA) today reported revenue for the first quarter ended April 28, 2024, of $26.0 billion, up 18% from the previous quarter and up 262% from a year ago.
NVIDIA cash on hand for the quarter ending April 30, 2024 was $31.438B, a 105.21% increase year-over-year. NVIDIA cash on hand for 2024 was $25.984B, a 95.43% increase from 2023.
NVIDIA has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.
NVIDIA (NVIDIA) Short-Term Debt : $1,250 Mil (As of Apr. 2024)
What if you invested $1,000 in Nvidia 10 years ago?
10-years: A $1,000 investment in Nvidia 10 years ago has compounded at 74.5 percent annually and would be worth $261,490.87 today.
Assuming Nvidia does hit $184.5 billion in revenue in fiscal 2027, its top line would have increased at a compound annual rate of 45%. If the semiconductor giant's growth tapers off in the two that follow years to, let's say 25% a year, its revenue could reach $288 billion after five years.
Nvidia's consensus long-term growth rate is 43% a year, which is among the highest for S&P 500 companies and multiples that of Microsoft and Apple. At that rate, Nvidia's operating earnings per share should climb to $80 in four years from $19 today, resulting in a long-term price/earnings ratio, let's call it, of 18.
How Much Debt Does NVIDIA Carry? You can click the graphic below for the historical numbers, but it shows that NVIDIA had US$9.71b of debt in January 2024, down from US$11.0b, one year before. However, it does have US$26.0b in cash offsetting this, leading to net cash of US$16.3b.
Since Nvidia's P/E ratio is nearly 74, the company would need to generate annual EPS growth of roughly 74% over the next five years to be undervalued today. Some investors could believe this lofty growth rate is quite possible. After all, Nvidia's EPS skyrocketed 629% year over year in the first quarter of 2024.
That isn't necessarily good or bad, but a high P/E implies relatively high market expectations of what a company can achieve in the future. NVIDIA's relatively high P/E ratio indicates that NVIDIA shareholders think it will perform better than other companies in its industry classification.
The largest owners of Nvidia stock are asset managers, such as BlackRock and Vanguard. These companies hold Nvidia stock in mutual funds and ETFs on behalf of their clients. Among individual investors, the largest shareholders are company insiders and board members, like founder Jensen Huang.
NASDAQ: NVDA
So, despite its meteoric rise since last year, the AI market still has plenty of room to run, with Nvidia well-positioned to keep seeing major gains and creating millionaires.
Nvidia first joined the $1 trillion club in May 2023 and since then has added more than $2 trillion in additional market value.
Microsoft has been quickly scaling its AI capabilities as it builds up its CoPilot product and continues its partnership with OpenAI. According to supply chain data estimates from Bloomberg, Arcuri is spot on with Microsoft being Nvidia's largest customer.
Is Nvidia the richest company?
Nvidia has become the most valuable company in the world after its market capitalization grew to $3.34 trillion, overtaking Microsoft at $3.32 trillion. Nvidia shares ended trading on June 18 at $136 per share, a 3.5% increase. Since the beginning of 2024, Nvidia's stock price has surged by more than 170%.
Nvidia's specialization means it is able to charge a premium for its products. In fact, its chips, which are manufactured in Taiwan, are so unique that companies looking to build AI capabilities are complaining that there is a shortage of them.
Nvidia stock slumped on Wednesday. The chip maker already was suffering from a further rotation away from large technology but it also was being dragged down by fears over the safety of its supply chain.
Nvidia Is the Fifth Most Profitable Company in the S&P 500. Here Are the 4 That Beat It. Nvidia has been on top of the world in recent years, riding high on the wave of artificial intelligence.
Nvidia (NVDA) Ownership Overview
The ownership structure of Nvidia (NVDA) stock is a mix of institutional, retail and individual investors. Approximately 23.88% of the company's stock is owned by Institutional Investors, 3.94% is owned by Insiders and 72.18% is owned by Public Companies and Individual Investors.
