NVIDIA Corporation - Leading provider of graphics and AI solutions

Brief summary for investors: NVIDIA has evolved from a GPU manufacturer to a central infrastructure provider for artificial intelligence and accelerated computing. With its hardware and software platform, the company dominates the AI chip market and structurally benefits from the megatrend of AI adoption.

Development The historical share price shows extraordinary value appreciation, driven by its transformative role in the AI revolution. After a consolidation phase until the end of 2022, the share price exploded from 2023 onwards, reaching an all-time high in September 2025. This development directly correlates with the exponential growth of the financial metrics: Revenue rose from USD 26.9 billion (2022) to USD 130.5 billion (2024), and net income from USD 4.4 billion to USD 72.9 billion over the same period. Profitability (ROE of 22.4%) and liquidity (current ratio of 3.4) are excellent. However, recent quarterly figures indicate possible seasonality or demand normalization, with a decline in EBIT and revenue in the most recent quarter compared to the previous quarter.

Opportunities:

• AI and HPC megatrend: Sustained high demand for AI training and inference solutions in data centers.
• Platform and software ecosystem: Lock-in effects from the CUDA ecosystem and software solutions such as AI Enterprise and Omniverse create high switching barriers and recurring revenue.
• Broad application areas: Expansion beyond data centers into automotive, robotics, Industry 4.0, and virtual worlds diversifies revenue sources.

Risks:

• Valuation risk: The extremely high market capitalization of over $3.3 trillion USD assumes a near-perfect growth scenario and makes the stock vulnerable to corrections.
• Focus on AI Cycle: The dependence on the ongoing wave of investment in AI data centers harbors cyclical risks in the event of a slowdown in demand.
• Competition and Regulation: Increased competition from large cloud providers' and semiconductor companies' own chips, as well as geopolitical trade restrictions, particularly with China.

Additional Notes: Political purchasing transactions can be viewed as a sentiment indicator, but are not a fundamental investment reason. CEO Jensen Huang sold significant shares between August and September 2025; while this often happens according to plan, it deserves consideration at this price level.

Conclusion: NVIDIA is a fundamentally exceptionally strong company dominating an epochal technology trend. Historical performance has been justified by fundamental outperformance. However, the current valuation already reflects very high expectations, which increases the risk of volatility in the event of even the slightest discrepancies. For investors, NVIDIA is a core bet on the future of AI, but it comes with considerable valuation risk.

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