4-Star Stocks Poised to Pop: NVIDIA

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, graphics-chip maker NVIDIA (Nasdaq: NVDA) has earned a respected four-star ranking.

With that in mind, let's take a closer look at NVIDIA's business and see what CAPS investors are saying about the stock right now.

NVIDIA facts

Headquarters (Founded)

Santa Clara, Calif. (1993)

Market Cap

$6.6 billion

Industry

Specialized semiconductors

Trailing-12-Month Revenue

$2.82 billion

Management

Co-Founder/CEO Jen-Hsun Huang

CFO David White

Return on Equity (Average, Past 3 Years)

11.9%

Cash/Debt

$1.47 billion / $25.06 million

Competitors

Intel (Nasdaq: INTC)

AMD (NYSE: AMD)

Broadcom (Nasdaq: BRCM)

CAPS Members Bullish on NVDA Also Bullish on

Apple (Nasdaq: AAPL)

Google (Nasdaq: GOOG)

CAPS Members Bearish on NVDA Also Bearish on

Ford Motor (NYSE: F)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95.5% of the 4,507 members who have rated NVIDIA believe the stock will outperform the S&P 500 going forward. These bulls include A00971591 and All-Star TMFmrquakeroats, who is ranked in the top 15% of our community.

Just last month, AA00971591 chipped in with a bullish take on NVIDIA's brand strength:

Although companies like Intel and AMD are now much more capable of producing products that compete with NVIDIA, I still like the name recognition of NVIDIA. [I]t is associated with better graphics and better performance. That recognition isn't going away anytime soon even if other companies can make similar products. I also am looking for NVIDIA to really break out into new markets, maybe something more mobile such as smart phones, or portable gaming devices.

In a pitch from the previous month, TMFmrquakeroats adds some graphic detail:

Over the next 10 years, I expect business performance to be volatile at times. However, the earnings trend line will be up. I don't know what year to year earnings will look like, though. To time the industry peaks and troughs is a pursuit of the wind. Therefore, I believe it is best to wait for cyclical troughs to pick stocks such as [NVIDIA] to outperform.

[NVIDIA] is the industry leader in gaming graphics cards. Gaming is in a strong upward trend that will not slow until sometime after the video game industry has overtaken other forms of entertainment

What do you think about NVIDIA, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. NVIDIA and Apple are Motley Fool Stock Advisor picks, Intel is an Inside Value choice, and Google is a recommendation of Rule Breakers. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 04, 2009, at 10:05 AM, TEBuddy wrote:

    Umm, when you base your decisions on incorrect facts then its doesnt make much sense.

    ATI has been around longer than Nvidia, and someone came up with a ridiculous long definition of GPU so that Nvidia could say they were the inventor of it, when ATI and 3dfx was already building graphics cards. Nvidia bought out 3dfx just to put them out of business and wouldnt support their superior products.

    ATI currently makes much better value video cards, and the most powerful gaming ones, and AMD is the only full system maker, offering way more gaming performance than Intel or Nvidia.

  • Report this Comment On November 04, 2009, at 1:02 PM, Joelshann wrote:

    TEBuddy =

    Fool member since August 2008

    ZERO posts

    ONECAPs rating (guess what it was? AMD)

    NO PROFILE.

    Where I come from, we call this static.

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