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    2025-12-30

    NVDA report

    Investment Thesis: NVIDIA Corporation

    Company Information

    • Name: NVIDIA Corporation
    • Ticker: NVDA
    • Sector: Semiconductors
    • Market Cap: [Market Cap]

    1. Financial Health Check

    • Revenue: $130.50B
    • Net Income: $72.88B
    • Net Margin: 55.85%
    • Revenue Growth (3yr CAGR): N/A (Need historical data)
    • ROE (Return on Equity): N/A (Missing Equity)
    • ROIC (Return on Invested Capital): [ROIC (Return on Invested Capital)]
    • Debt/Equity: N/A (Missing Liabilities)
    • Free Cash Flow Yield: [Free Cash Flow Yield]
    • Free Cash Flow Trend: [Free Cash Flow Trend]

    2. Financial Trends

    3. Historical Data

    YearRevenueNet IncomeGross ProfitOp. Cash Flow

    4. Competitive Advantage (Moat)

    • Type of Moat: Intangible Assets, Switching Costs
    • Strength: Wide
    • Description: NVIDIA's primary moat stems from its CUDA software, which has become the industry standard for GPU computing. This creates a powerful network effect and high switching costs for developers. The company's strong brand and extensive patent portfolio also contribute to its competitive advantage.

    5. The Supply Chain Position

    • Buys from: TSMC (for manufacturing), various suppliers for other components.
    • Sells to: Data centers, gamers, automotive companies, and other enterprises.

    6. Management Quality

    • CEO: Jensen Huang (Co-founder)
    • Capital Allocation History: [Track record of M&A, buybacks vs. dividends, reinvestment rates]
    • Incentive Alignment: [How is management compensated? Stock options, performance targets?]
    • Insider Ownership: [High/Low - Specific %]

    7. Growth Prospects

    • Total Addressable Market (TAM): [Size and Growth Rate]
    • Market Share: [Current share and potential to gain]
    • New Products/Services: [Pipeline]

    8. Scuttlebutt & Soft Data

    • Customer Reviews: [Trends in customer satisfaction]
    • Employee Feedback: [Glassdoor ratings, turnover]
    • Channel Checks: [Insights from suppliers or distributors]

    9. Valuation & Risks

    • P/E Ratio: [Current vs. Historical vs. Peers]
    • EV/EBITDA: [Current vs. Historical vs. Peers]
    • DCF Fair Value: [Estimate]
    • Primary Bear Case: Competition from other chip designers (e.g., AMD, Intel) and large cloud providers developing their own chips.

    10. Checklist

    • Do I understand the business model?
    • Is the balance sheet healthy?
    • Is management aligned with shareholders?
    • Is the valuation reasonable?
    • Is there a clear catalyst?