Core Viewpoint - NVIDIA's stock has shown significant growth, currently trading at $199.05, driven by positive market conditions and a favorable outlook for the company, with a target price of $260 suggested based on its strong operational performance and financial health [1][3]. Valuation - NVIDIA is currently valued at over $4.9 trillion, making it the world's most valuable publicly traded company [3]. - The stock's valuation appears very high compared to the broader market, indicating potential caution for investors [4]. Growth - NVIDIA has achieved an impressive average top-line growth rate of 92.0% over the last three years [5]. - Revenues increased by 72% from $96 billion to $165 billion in the past 12 months [5]. - Quarterly revenues rose by 55.6% to $47 billion compared to $30 billion a year earlier [6]. Profitability - NVIDIA's operating income over the last 12 months was $96 billion, resulting in an operating margin of 58.1% [10]. - The company reported a net income of nearly $87 billion, leading to a net margin of around 52.4% [10]. Financial Stability - NVIDIA's debt stands at $11 billion, with a market capitalization of $4.9 trillion, resulting in a debt-to-equity ratio of 0.2% [10]. - The company has a cash-to-assets ratio of 38.4%, with cash and cash equivalents amounting to $54 billion of total assets of $141 billion [10]. Downturn Resilience - NVIDIA has shown moderate resilience during economic downturns, experiencing a slightly worse impact than the S&P 500 index [7]. - Historical data indicates that NVIDIA's stock has fully recovered from significant declines during past crises, including the 2020 COVID pandemic and the 2008 global financial crisis [11].
Nvidia Stock To $260?