Core Viewpoint - NVIDIA Corporation is a leading player in accelerated computing and is crucial for the AI revolution, with its data-center segment being the primary revenue driver [2] Group 1: Company Profile - NVIDIA is recognized as the global leader in accelerated computing, providing foundational hardware for AI [2] - The company's data-center segment, supported by Hopper and upcoming Blackwell GPU platforms, significantly contributes to its revenue and profits [2] - NVIDIA's ecosystem, including CUDA, software libraries, and networking (Mellanox), creates a strong competitive advantage [2] Group 2: DCF Analysis - The DCF model uses a discount rate of 10% and a terminal growth rate of 3% [3] - Forecasted free cash flows (in billions USD) are projected to grow from $80.0 in 2025 to $120.0 in 2029, with a total present value of $373.8 billion [3] - The terminal value, calculated using a perpetuity growth model, is estimated at $1,766 billion, leading to a present value of $1,095 billion [3] - The enterprise value is calculated to be $1,468.8 billion [3] Group 3: Financial Metrics - NVIDIA has a net cash position with cash and equivalents at $53.99 billion and total debt at $10.60 billion, resulting in net debt of -$43.4 billion [4] - The equity value is calculated at $1,512.2 billion, with approximately 24.35 billion shares outstanding, leading to an intrinsic value per share of about $62 [4] Group 4: Market Position and Valuation - The current market price of NVIDIA is around $180, indicating a margin of safety of -66% compared to the DCF value [4] - Despite being a technology leader with strong revenue growth and pricing power, NVIDIA's stock is considered overvalued under conservative DCF assumptions [4][5] - For long-term investors, NVIDIA is seen as a high-quality investment, but the current price offers little margin of safety [5]