Why NVIDIA Is Ready to Rebound

Market-trouncing returns could be written in this 4-Star.

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Feb 15, 2013 at 5:45PM
Technology and Telecom

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, graphics-chip maker NVIDIA (NASDAQ:NVDA) has earned a solid four-star ranking.

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

NVIDIA facts

Headquarters (founded)

Santa Clara, Calif. (1993)

Market Cap

$8.0 billion

Industry

Semiconductors

Trailing-12-Month Revenue

$4.1 billion

Management

Co-Founder/CEO Jen-Hsun Huang

Co-Founder/Vice President of Research Chris Malachowsky

Return on Equity (average, past 3 years)

12.4%

Cash/Debt

$3.4 billion / $19.6 million

Dividend Yield

2.4%

Competitors

AMD

Intel

Qualcomm

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 5,610 members who have rated NVIDIA believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those bulls, hoopdloop, tapped NVIDIA as a particularly tempting bargain opportunity: "Oversold due to stagnant PC sales, but they are poised to thrive in the rise of the mobile market as well. Market has unduly punished them for their association with PC's, without fully accounting for their association with mobile devices."

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.