NVIDIA Corp (NASDAQ-NVDA) is an American technology company headquartered in Santa Clara, California, USA and was founded in April 1993. The company’s CEO and President is Jensen Huang. The company designs graphics processing units (GPUs) for the gaming and professional markets, as well as system-on-chips (SoCs) for the mobile and automotive markets. Since 2014, NVIDIA Corp (NASDAQ-NVDA) has expanded its focus into the professional gaming visualization, data center, and artificial intelligence industries.
Few names have garnered as much attention in 2023 as NVIDIA Corp (NASDAQ-NVDA). Known for its cutting-edge semiconductor technology, this giant has seen its stock rise more than 130% year-over-year, making it a headline-grabbing title in investment circles. Much of this meteoric rise can be attributed to the robust production and sales performance of Nvidia’s H100 GPU (micro-architecture GPU), which debuted in the third quarter of fiscal year 2023. However, as the saying goes, what goes up must also come down, and Nvidia stock is no exception. NVIDIA recently reported second quarter earnings results that came in above the expectations of global analysts. The company’s revenue was up 101% year-over-year to $13.51 billion. The company also posted record year-over-year growth in data center revenue with a 171% increase to $10.32 billion.
NVIDIA Founder and CEO Jensen Huang said, “A new era of computing has begun. Companies around the world are transitioning to generative AI, where NVIDIA GPUs connect to their Mellanox networking technologies, which run on our CUDA AI software suite to form the computing infrastructure for generative AI. During the second quarter of the fiscal year, NVIDIA returned $3.38 billion to shareholders in the form of 7.5 million shares of common stock and a $3.28 billion cash dividend. At the end of the second quarter, NVIDIA Corp (NASDAQ-NVDA) had $3.95 billion remaining under its share repurchase authorization. On Aug. 21, 2023, the company’s board of directors authorized an additional $25.00 billion in share repurchases without expiration. NVIDIA Corp (NASDAQ-NVDA) plans to continue to repurchase shares this fiscal year. NVIDIA Corp (NASDAQ-NVDA) also pays regular quarterly dividends to its shareholders. The dividend yield is currently 0.035% per annum and the actual dividend amount has been approved by the company’s general meeting of shareholders at $0.04 per share. The average target price for the short to medium term investment horizon has been set at $647.04 per share.
