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ABSTRACT

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.