Why NVIDIA Is Poised to Pop

Updated

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

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

NVIDIA facts

Headquarters (founded)

Santa Clara, Calif. (1993)

Market Cap

$8.4 billion

Industry

Semiconductors

Trailing-12-Month Revenue

$4.3 billion

Management

Co-Founder/CEO Jen-Hsun Huang

Co-Founder/Vice President of Research Chris Malachowsky

11.3%

Cash/Debt

$3.7 billion / $18.3 million

Dividend Yield

2.1%

Competitors


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

On CAPS, 96% of the 5,583 members who have rated NVIDIA believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star dreamjob, succinctly summed up the bull case for our community:

NVIDIA has opportunities in a very large and profitable market -- smart phones. They offer a competitive processor and they are displaying signs of a strong, growing company (elevated CROIC, growth in owner earnings, BV, earnings and sales). To top this off, this company looks cheap with a TTM owner earnings yield of about 8%. The debt is manageable as well.

NVIDIA was ahead of the curve launching its mobile Tegra processor, but investing gains haven't followed as expected, with the company struggling to gain momentum in the smartphone market. The Motley Fool's latest premium report examines NVIDIA's stumbling blocks, but also homes in on opportunities that many investors are overlooking. We'll help you sort fact from fiction to determine whether NVIDIA is a buy at today's prices. Simply click here now to unlock your copy of this comprehensive report.

The article Why NVIDIA Is Poised to Pop originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Intel and NVIDIA. The Motley Fool owns shares of Intel and Qualcomm. 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 Motley Fool has a disclosure policy.

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