2/19/2023 0 Comments Fb stock nvda![]() Its 5Y revenue CAGR of 31.6% is miles ahead of the semiconductor industry's growth. Over the last five years, NVIDIA's phenomenal topline growth undoubtedly qualified it as a solid growth stock within the semiconductor industry. NVDA revenue and YoY change % (S&P Capital IQ) Therefore, investors must carefully watch its topline growth as much as its profitability gains. Therefore, some investors could be curious how a company with an FCF yield averaging just 2.5% over five years could produce well over 700% gains. Both semiconductor leaders boast superior NTM FCF yields of 7.2% and 8.5%, respectively. Furthermore, it's way below more attractively-priced peers such as Broadcom ( AVGO) and Qualcomm ( QCOM). However, NVDA stock's current FCF yield of 2.4% is lower than AMD's 3.2%. Its 5Y mean of 2.5% is only higher than AMD's 2.1%. However, its NTM FCF yield is also relatively low due to its premium valuation. In addition, NVIDIA is also a solidly FCF profitable company. ![]() But, it has not disappointed its investors, who have held its stock firmly over time. Nevertheless, it has not prevented NVDA stock from notching substantial gains of 792% (CAGR: 54.8%) for its investors over the last five years. For example, AMD's ( AMD) 5Y mean is 5.3x, and Intel's ( INTC) 5Y mean is 3.3x. Its 5Y NTM Revenue mean of 13x is higher than its peers. Investors can glean from the above and observe that NVDA stock has traded at a premium over the last five years. We also share why NVDA stock is a Buy now. We discuss what investors should consider for investing in NVDA stock. Therefore, we are keen to parse what NVIDIA will be focusing on given its leaks and the increasing enterprise focus on cybersecurity. It has undoubtedly affected NVIDIA's optics somewhat. ![]() Investors should recall that NVIDIA was affected by a "cybersecurity incident" where some proprietary information was leaked. Notably, its GTC will also include a segment focusing on cybersecurity. NVIDIA Corporation's ( NASDAQ: NVDA) highly anticipated GTC would occur between March 21-24, as investors parse the latest developments by CEO Jensen Huang & Team. Justin Sullivan/Getty Images News Investment Thesis
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