Nvidia is a Tech Stock Pick With Broad Exposure

NvidiaNvidia Corp. (NASDAQ: NVDA) is a major technology company that designs and manufactures computer graphics processors and chipsets. It also develops SoC (System on a Chip) processors used in computers and niche devices. A strong balance sheet and other key signals make this a top stock pick in August.

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In the company’s 2020 fiscal year, revenue declined -6.81% while gross income declined -5.96%. This followed four years of double-digit revenue growth. Uncertainty in the chip sector and the impact of the U.S. / China trade war were contributing factors. However, high profitability and a robust balance sheet have minimized the impact. The company is ready to grow into the future with some key initiatives.

Nvidia is developing processors for self-driving vehicles, which are now becoming a reality in the U.S. It is the chip manufacturer for Nintendo, one of the most successful video game console developers of this generation. The company is also the leader in the personal computer and professional graphics markets. It has recently been announced that Nvidia is in talks to acquire Arm Ltd. for $32 billion. Arm is a major semiconductor company that owns an extensive patent portfolio. Its patents are used in chips for Samsung, Apple, Microsoft, and other device manufacturers.

Nvidia’s high profitability and diversification in the tech market make it an excellent pick for 2020 and the coming years. Strong stock momentum indicates that investors who buy today will enjoy significant gains as the market continues to expand.

Key Data:

  • 1 Year Price Growth: 08%
  • YTD Price Growth: 17%
  • 3 Month Price Growth: 93%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

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The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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