4-Star Stocks Poised to Pop: NVIDIA

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, graphics-chip maker NVIDIA (NAS: NVDA) has earned a respected four-star ranking.

With that in mind, let's take a closer look at NVIDIA's business and see what CAPS investors are saying about the stock right now.

NVIDIA facts

Headquarters (founded)Santa Clara, Calif. (1993)
Market Cap$8.65 billion
IndustrySemiconductors
Trailing-12-Month Revenue$3.71 billion
ManagementCo-Founder/CEO Jen-Hsun Huang
Interim CFO Karen Burns
Return on Equity (average, past 3 years)3.4%
Cash/Debt$2.47 billion / $22.5 million
CompetitorsAMD (NYS: AMD)
Intel (NAS: INTC)
Texas Instruments (NYS: TXN)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 5,273 members who have rated NVIDIA believe the stock will outperform the S&P 500 going forward. These bulls include mpdelbuono and chrisrobhay2.

This past summer, mpdelbuono tapped NVIDIA as a particularly strong selection: "They've got a good hold on market share and semiconductors are doing well. With a solid balance sheet, I only expect good things from [NVIDIA]."

Over the next five years, in fact, NVIDIA is expected to grow its bottom line at a solid rate of 15% annually. That's faster than competitors AMD (10%), Intel (11%), and Texas Instruments (10%).

CAPS member chrisrobhay2 elaborated on the bull case for NVIDIA in July:

Nvidia has really surprised me with the initiative that it has taken in the mobile sector in recent years. Its Tegra 2 chip has made its way into several tablets, and the new Kal-El chip promises to be five times as fast. They also have the most aggressive release schedule that I've seen, with a new chip arriving each year. Aside from their push in the mobile sector, Nvidia has maintained a decent lead over AMD in the consumer and corporate markets. Hopefully that aggressiveness that Nvidia is having with their Tegra chips will translate over into the other markets that they're in, as it would help this stock soar.

What do you think about NVIDIA, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackNVIDIA?Add it to your watchlist.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of NVIDIA and Intel, writing puts on NVIDIA, and creating a bull call spread position in Intel. The Fool owns shares of Texas Instruments and Intel and has bought calls on Intel. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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