Fundamental Analysis: NVDA & TSLA
An executive analysis presenting external and internal factors, including evolution in financial Indicators and competitors to watch.
Behind a bullish chart, there must be a solid company. The best investments balance technical and fundamental analysis.
Since the market is in volatility mode, and there is a lot of fear because September is historically a bearish month of the year, It is worth to look the financial health of some companies that may be or may be not, buying opportunities.
Fundamental analysis is more comprehensive than technical analysis, as it involves examining historical data, the evolution of financial indicators, and the underlying business of the company.
While fundamental analysis can be standardized in terms of its approach, it requires a deeper level of research and understanding compared to technical analysis. Technical analysis, while more complex, can be simplified through a single chart. Its complexity stems from the lack of a single, all-encompassing indicator that can predict all stock movements.
Before delving into the indicator analysis and industry context presented in this edition (including PE Ratio, Price/Sales, Revenue, EBITDA, and more), please review the educational content on fundamental indicators. Access the material using this link:
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That is why I link previous studies or lessons to the latest publications.
NVDA
Nvidia's strong performance continues, as the company exceeded expectations with its second-quarter earnings report and third-quarter forecast. The business expectation for Nvidia remains high, driven by the insatiable demand for its graphics processing units (GPUs) and related products used in artificial intelligence data centers. The earnings beat was not as substantial as in previous quarters.
Though tech giants may seek alternative solutions, Nvidia's AI leadership is likely to remain.
GPUs excel at parallel processing, making them ideal for AI workloads. Nvidia's GPUs, already popular for gaming, are now indispensable for AI, thanks to their hardware and software ecosystem, especially Cuda. This creates high switching costs for customers, further solidifying Nvidia's position.
Nvidia's future is intertwined with the AI market. Competitors are emerging, but Nvidia's current leadership and high valuation depend on maintaining its edge in GPUs and AI tools.
Bullish Factors:
Nvidia's GPUs, with their superior parallel processing capabilities, have applications beyond gaming, extending into AI and potentially other future fields.