Q6 Case Study: Nvidia
GROUP 7
December 2024
1 Company Overview: AI Arithmetic Leader in the Age
of Artificial Intelligence
1.1 Continuous business transformation with full AI adoption
Founded in 1993, NVIDIA pioneered GPU-based computing. Early on, it introduced RIVA 128
(the first 128-bit 3D processor) and GeForce256 (the first true GPU), cementing its leadership
in graphics. By launching CUDA in 2006, NVIDIA expanded from gaming into AI, data science,
and autonomous driving. Riding the AI era, it integrated GPU+DPU+CPU in data centers
and leveraged the Omniverse platform. By 2024, its market cap reached $3.34 trillion, defining
the global standard in AI+cloud computing solutions.
1.2 Blackwell in full volume production, performance in line with
expectations
Thanks to unprecedented levels of demand for artificial intelligence and high-performance com-
puting, NVIDIA’s revenue for the third quarter in 2025 reached $35082 billion, up 74.6% year-
over-year and the net income reached $19309 billion, an increase of 109% year-over-year.In the
first quarter of 2024, the Company launched the Blackwell platform, which is driving a new era
of AI computing at the trillion-parameter scale. During the quarter, the Blackwell platform
achieved full volume production and delivered 13,000 GPU samples to customers. As customer
demand continues to grow, the Company’s performance is expected to further improve.
Figure 2: net income in FY2019-2025Q3
Figure 1: Revenue in FY2019-2025Q3
1
1.3 Diversified Growth Across Gaming, Visualization, and Automo-
tive Segments
Beyond its core data center business, Nvidia’s gaming, professional visualization, and automo-
tive segments have demonstrated steady growth, contributing to a diversified revenue stream. In
gaming, Nvidia leverages the technological superiority of its GeForce RTX GPUs, holding over
80% market share and achieving $2.647 billion in revenue in FY25Q1, a year-on-year increase
of 18.17%. In professional visualization, Nvidia combines AI with visualization technologies
through its RTX GPUs and Omniverse platform, which are widely applied in architecture,
healthcare, and media production. This segment generated $427 million in revenue in FY25Q1,
up 44.75% year-on-year. Additionally, its automotive business provides end-to-end solutions
from autonomous driving to intelligent cockpits via the DRIVE platform, with collaborations
with automakers like BYD and XPeng driving adoption in the smart vehicle sector. This seg-
ment reported $329 million in revenue for FY25Q1, a year-on-year growth of 11.15%. Nvidia’s
diversified business portfolio not only strengthens its market leadership but also ensures stable
support for long-term growth.
Figure 3: Revenue and YoY growth for Nvidia’s Gaming Segment(FY22-FY25)
Figure 4: Revenue and YoY growth for Nvidia’s Professional Visualization Segment(FY22-
FY25)
2
Figure 5: Revenue and YoY growth for Nvidia’s Automotive Segment (FY22-FY25)
2 NVIDIA Competitors and Market Analysis
NVIDIA Corporation is a dominant player in the GPU and AI hardware markets, leveraging
its robust ecosystem, including CUDA and Hopper architecture, to maintain its competitive
edge. Despite its leading position, NVIDIA faces increasing competition from several fronts:
• AMD and Intel: Established rivals continue innovating in GPUs and aim to close the
performance gap in gaming and professional markets.
• Tech Giants: Companies like Google, Amazon, and Microsoft are developing custom AI
chips to reduce their reliance on NVIDIA products.
• Emerging Players: Startups such as Graphcore are striving to secure a foothold in the
rapidly growing AI chip sector.
NVIDIA’s financial performance has been exceptional, with strong revenue growth [See
Figure 6] and a significant market capitalization. However, regulatory scrutiny, particularly
in China, and its disproportionate influence on indices like the SP 500 raise potential risks.
Moreover, its high valuation reflects a premium tied to growth expectations, which could limit
further upside.
Figure 6: Enter Caption
3
3 AI chip drives high growth, combining hardware and
software to build competitive barriers
AI business cycle to determine the height of the stock price, NVIDIA performance to determine
the lower limit of the stock price:As we all know NVIDIA AI chip is the core hardware infras-
tructure of this round of AI and the common point of these two rounds is the fire of generative
AI, while the Internet vendors continue to raise AI’s Capex expectations.
Figure 7: Stock price for NVDIA
Buy Rating: AIGC industry development to enhance the global arithmetic demand,
NVIDIA as a leading arithmetic chip, with the advanced layout + build hardware and software
ecological barriers + continued layout of emerging areas in the field of arithmetic chip stable
leading position in the AI industry outbreak to achieve profits and valuation of the double en-
hancement. In addition, Figure 7 shows NVIDIA’s long-term moving averages trending upward
with solid support levels, indicating a positive outlook for long-term holding. Our buy rating
is Buy.
Risk Warning: global arithmetic input is less than expected, changes in arithmetic chip
pattern, and the risk of increased technology sanctions affecting the global industry chain.
4 Reference
https://finviz.com/quote.ashx?t=NVDAp=dty=rv
