Nvidia: Headwinds To Persist (Till 2023), Load Up At The Next Dip

Sep. 09, 2022 4:00 PM ETNVIDIA Corporation (NVDA)8 Comments
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Summary

  • Unfortunately, the headwinds are not abating, since NVDA may lose another $400M in Chinese-related sales due to the new US government restrictions.
  • Combined with the Fed's aggressive rate hikes through 2023, there are minimal catalysts for NVDA's financial and stock recovery in the short term.
  • Nonetheless, long-term investors need not lose courage, since these headwinds would likely lift by mid or end of 2023.
  • The PC destruction would only lead to the massive growth in NVDA data-center and automotive segments, especially given the rise of Robo-Taxis.
  • The improving macroeconomics and geopolitical scene from 2024 onwards would likely trigger a bull run market similarly between 2009 and 2020.

Business pressure man getting hit by wave with attacking shark

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Investment Thesis

The new US government restrictions may cause Nvidia (NASDAQ:NVDA) to lose another $400M in sales derived from China in FQ3'22, assuming delays in licensing approval for its accelerators and data center-related chips. Combined

NVDA Revenue, Net Income, Net Income Margin, and Gross Margin

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NVDA Revenue By Segment

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NVDA Operating Expenses

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NVDA Cash/ Equivalents, FCF, and FCF Margins

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NVDA Projected Revenue and Net Income

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NVDA Revenues By Segment In FQ3'22 ( Projected )

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NVDA 5Y EV/Revenue and P/E Valuations

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NVDA 5Y Stock Price

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This article was written by

Juxtaposed Ideas profile picture
5.11K Followers
I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.Prior to Seeking Alpha, I worked as a professionally trained architect in a private architecture practice, with a focus on public and healthcare projects. My qualifications include:- Qualified Person with the Board of Architects, Singapore.- Master's in Architecture from the National University of Singapore.- Bachelor in Arts from the National University of Singapore.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.

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