We have launched coverage of NVIDIA (NVDA-NASDAQ). Our gaming revenue estimates use metrics unrelated to historical financials (adjusted r-squared of 0.91). Datacenter and Automotive revenue on a historical basis can be modelled using a quadratic equation to a fairly good degree of accuracy (an r-squared over 0.95). We forecast sales from these segments using a time-series function. We also incorporate the potential impact from new products and industry demand.
Our estimates on the cost side assume a steady gross margin, consistent dollar increases in operating costs and an income tax rate of 12%. Our financial model is available upon request for Perspectec subscribers only.
* Please note the “Regression Statistics” are for the linear regression as provided in Excel. We use the quadratic equations with the higher r-squared to forecast the datacenter and automotive segments.
You must be logged in as a 'Perspectec Institutional Equity Research' or 'Perspective on Technology' subscriber to view this content.
