I’m more interested in my colleague’s thoughts on the company. Given it’s only $47 away, I don’t think there’s any doubt it will. InvestorPlace’s Muslim Farooque recently discussed why Nvidia stock is going to hit $500 in the near future. So, how fast can it get to $1,000? If I know Nvidia, more quickly than anyone can imagine.
Now, it’s probably reasonably valued, but not outrageously expensive. In June 2019, I argued that Nvidia’s free cash flow made it a great buy on the dip. Importantly, its TTM FCF is more than 7x that of Advanced Micro Devices.
In the trailing 12 months (TTM), it generated $4.43 billion in FCF, $160 million more than at the end of January. In the three months ended April 26, it had free cash flow (FCF) of $754 million, 27% higher than a year earlier. I’ve always felt what sets Nvidia apart is its cash generation. In the latest quarter, its Graphics segment, the larger of its two reporting units, grew revenues by 25% to $1.9 billion, while its Compute & Networking segment boosted sales by 69% with a substantial contribution from data center-related business. He’s built the company from something focused on PC graphics to a business with multiple revenue streams, the two most prevalent being data centers and gaming. Jensen Huang Is Pretty Good, TooĪnother good CEO is Nvidia’s chief executive and founder, Jensen Huang.
Ultimately, when Su does leave, she will depart with the company in a much better place than when she took the job in October 2014.
If she were to leave the company, it would be tough for it to keep moving forward, but you don’t achieve the kind of long-term success Su has without a strong management team. In August 2019, when rumors were flying about Su departing for IBM (NYSE: IBM), I said it would be terrible for AMD.
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