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A Financial Analysis and Valuation of NVIDIA
- 1 Faculty of Arts and Humanities, University of Southampton, Southampton, SO17 1BJ, United Kingdom
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Abstract
This paper analyzes the financial performance and strategic positioning of NVIDIA, a leading player in the semiconductor industry. NVIDIA's market value has surged in recent years, largely driven by advancements in artificial intelligence (AI) and the increasing demand for high-performance computing. The company’s data center division has experienced substantial revenue growth year-on-year, fueled by the widespread adoption of AI-driven applications, cloud computing, and machine learning technologies. However, NVIDIA faces several challenges, including intense competition from industry rivals such as AMD and Intel, geopolitical risks—particularly concerning trade tensions with China—and regulatory scrutiny over its attempted acquisition of ARM. To assess NVIDIA’s competitive landscape, this paper employs both SWOT and PESTLE analyses. The SWOT analysis highlights the company’s strong brand reputation, technological leadership, and innovation capabilities while also identifying weaknesses such as its heavy reliance on GPU sales and supply chain vulnerabilities. The PESTLE analysis further examines external factors shaping NVIDIA’s operations, including regulatory developments, economic shifts, and environmental considerations. This comprehensive evaluation provides insight into NVIDIA’s market positioning and future growth potential in a rapidly evolving industry.
Keywords
Financial Performance, Strategic Positioning, Semiconductor Industry
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Cite this article
Liu,Y. (2025). A Financial Analysis and Valuation of NVIDIA. Advances in Economics, Management and Political Sciences,175,28-34.
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Volume title: Proceedings of the 4th International Conference on Business and Policy Studies
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