About the Nvidia Group:
The American group Nvidia is currently the international leader in the design, development and sales of programmable graphics processors. It mainly offers graphics and multimedia computer processors but also mobile processors and other similar products.
It also develops associated software under the ForceWear brand.
The Nvidia group achieves the greater part of its turnover from its activities in the United States but also from Taiwan, China, Pacific Asia and Europe.
The major competitors of NVidia:
The NVidia Group is specialised in the creation and production of graphics cards and graphics processors. In this sector it is facing serious competition from other specialised and non-specialised groups. We offer you the opportunity here to learn about NVidia’s major competitors around the world to assist you in developing a coherent investment strategy.
In the graphics elements sector, the major competitors of the NVidia Group are the AMD and Intel companies. However it is also important to monitor other smaller companies such as S3 Graphics, SiS and Via.
NVidia is also facing competition from certain technological giants in the semi-conductor sector that also produce graphics processors such as Intel, Samsung, TSMC, Qualcomm, Broadcom, Hynix, Micron, Texas Instruments, Toshiba, NXP, MediaTek, Infineon and ST Microelectronics.
You can easily find information about these competitors through your broker’s website or in the information relating to economic current events.
The major partners of NVidia:
Nvidia has developed major strategic partnerships that we detail as follows with some explanations on its recent collaborations.
- In 2013 NVidia became a partner of the Ubisoft Group to integrate its technological innovations in some of its video games under production.
- In 2016, Tesla Motors called upon NVidia to equip its onboard digital dashboards and vehicle tactile screens with this brand’s most powerful graphics cards and processors.
- In 2017 NVidia became a partner of Bosch for the integration of its Drive PX platform and the development of its AI for autonomous vehicles.
- Still in 2017 NVidia signed a partnership with the Volvo automobile constructor aimed at developing a system of autonomous driving. The first autonomous vehicles should enter circulation in 2021.
Analysis of the Nvidia share price:
The Nvidia share price is actually quoted on the foreign section of the American Nasdaq Global Market and is integrated in the calculation of the Nasdaq 100 stock market Index.
Important stock market data about the NVidia shares:
- In 2017 the total stock market capital of the NVidia Company achieved 89,184.55 million U.S. Dollars.
- The number of shares issued by the NVidia Company and in circulation on the markets amounts to around 41,745,300.
- The share price of the NVidia Company is currently quoted on the Nasdaq Global Select market of the Nasdaq All Markets stock market in the United States.
- The NVidia Company share price is also included in the composition of the Nasdaq 100 technology stock market index and it is therefore among the 100 companies in this sector with the highest stock market capitalisation.
- Shareholdings in the NVidia Company are composed as follows: 12.73% by the Fidelity Management and Research Company, 6.49% by the Vanguard Group, 4.17% by the Primecap Management Company, 3.91% by the State Street Corporation, 3.40% by BlackRock Fund Advisors, 2.91% by Jennison Associates LLC, 2.83% by Goldman Sachs & Co, 2.62% by Baillie Gifford & Co, and 1.83% by MFS Investment Management KK.
Economical and financial history of the NVidia Company:
- In 2012 NVidia launched its Kepler architecture.
- In 2013 the group unveiled its first video games console, Project Shield.
- In 2014, NVidia produced the new Maxwell architecture for the GTX750 and 750Ti graphics cards and launched the GTX 900 series.
- In 2015 NVidia possessed 82% of the market in graphics cards thereby overtaking AMD.
- In 2016, the group launched its Pascal architecture and produced the GTX 1080.
- In 2017 NVidia and AMD were running neck and neck for production of the highest performance graphics cards solution but NVidia remains the leader in Cloud Gaming solutions with its GeForce Grid.
- Toujours en 2017, NVidia signe un partenariat avec l’équipementier Bosch afin de développer des produits d’intelligence artificielle et une voiture autonome.
- Still in 2017 NVidia signed a partnership with the Bosch equipment company to develop AI products and an autonomous vehicle.
The advantages and strengths of NVidia shares as a stock market asset:
Investors who take a long position in Nvidia's share price are of course based on their belief that the company has good prospects for the future. But to be convinced of this, it is of course necessary to compare the analyses and weaknesses of this company in order to determine its growth capacities as accurately as possible. We will therefore first discuss here the strengths of this company and its main strengths.
First of all, the Nvidia group's main asset remains its positioning on the global market. Indeed, the company has a very strong presence in its sector of activity in many countries and also enjoys excellent popularity with the general public and with the IT industries that are part of its customers.
The Nvidia group also benefits from a strong market capacity. It is expanding its activities internationally thanks to the presence of offices in no less than 14 countries. Thus, it can effectively protect itself from local economic crises by affecting various economies with different profiles. In particular, the group has performed very well in new markets thanks to its expertise, which enables it to penetrate these markets and establish a long-term presence. This international expansion has helped the group to generate new sources of revenue and avoid the cyclical aspect of the markets in which it operates.
To increase its sales and improve its results, the Nvidia group can also count on a strong reseller community. It has thus developed a real culture among its main distributors and resellers, who play an important role in promoting its products and invest in training salespeople in order to maximize the sale of these products.
Nvidia also has a very wide range of products in the graphic units sector. Thus, it offers products of different levels and prices, which allows it to reach the entire market where some of its competitors are specialized in a specific range. Nvidia also operates several brands that are very popular, such as GeForce, Quadro, Tagra, Tesla and nForce.
The Nvidia group's ability to innovate is also a definite advantage. Working in a particularly technological field, he can rely on his research and development to invent new products that are more efficient or meet new needs. Nvidia is also at the head of a very large patent portfolio with more than 2,300 patents to date.
Finally, we can appreciate the very good financial situation of this company, which has been marked by an increase in its performance in recent years. These figures are of course highly appreciated by investors and shareholders.
The disadvantages and weaknesses of the Nvidia share as a stock market asset:
We have just reviewed the many strengths of the Nvidia group that should enable it to ensure its future profitability. But before taking a long-term buying position with this action, through CFDs for example, you must also know the possible obstacles to this development and therefore the weaknesses of this company. Here is a summary of the defects of this value and the weak points of the company Nvidia.
First, due to the advent of mobile devices, the group has recently experienced a decline in sales of its products for computers. Unlike some of its competitors who have anticipated this change in consumers, Nvidia has not yet been able to position itself successfully in this new market.
The group is also affected by very strong competition from other large multinational companies. As a result, it finds itself limited in its market share gains. It is also necessary to take into account Chinese competition, which is increasingly strong in the specific field of semiconductors and is driving prices down, thus adding additional pressure.
Among the most threatening competitors for Nvidia, new entrants can also be found in very specific segments that represent niche categories. The group has thus lost some of its market share because it has not been able to adapt to this new competition.
It can also be noted that the Nvidia group is unable to correctly anticipate product demand, which leads to a high rate of missed opportunities compared to its competitors. The company has thus failed to demonstrate its ability to adapt its production to the needs of its main customers, which has also led to a significant increase in stocks and therefore substantial losses.
Finally, it is also regrettable that the Nvidia group remains focused on its core business and enjoys only limited success in the other product categories. Although Nvidia is one of the leading companies in its sector, it faces significant challenges in diversifying into other types of products while maintaining its current corporate culture. In addition, the lack of choice in the range of products sold by Nvidia could lead to the loss of some of its customers who will prefer a company that can meet all their needs with a single, more complete offer.