NVIDIA's Operating Strategy Analysis Based on Multiple Valuation Method and SWOT

Abstract

In recent years, due to the influence of technological development, epidemic situation and international situation, the development of the semiconductor industry has both risks and opportunities. Compared with other semiconductor companies, NVIDIA's share price and corporate value are at a high level. This raises several questions: is the value of NVIDIA fair? Under such circumstances, what competitive advantages does it have and what strategic choices will it make? This paper will use two multiples valuation methods to evaluate NVIDIA. Through the SWOT method, the paper puts forward suggestions for the development of NVIDIA. The conclusion is that NVIDIA is overvalued, and the five pieces of advice are to transform the supply chain in Gaming market, tilt resources towards the data center, expand the business volume in the field of artificial intelligence and self-driving cars, open new segments and reduce overlap with strong competitors and maintain a good relationship with chip foundries. These suggestions are of certain reference significance to semiconductor enterprises with scientific and technological advantages.