10Y annualized return is
excellent
at 69.6% per year
NVDA has met or exceeded earnings expectations in
all
recent quarters (2/2)
Strong Gross Profit Margin
High Return on Equity
Strong Net Profit Margin
High Operating Profit Margin
Strong Liquidity Ratios
Low Debt Levels
🏆 Strong Business Model
🔧 Competitive Advantages
🌍 Global Market Reach
🚀 High Growth Potential
💡 Innovation and Adaptation
High Valuation Ratios
High Price to Sales Ratio
High Price to Free Cash Flow Ratio
Low Cash Ratio
⚠️ Networking Revenue Decline
🔍 Regulatory Challenges in China
Overall, NVIDIA demonstrates a strong business quality with significant revenue growth and competitive advantages in the AI market. Future prospects remain positive, driven by continued demand for AI infrastructure and innovative technologies. However, regulatory challenges in China and a decline in networking revenue present potential risks.
Analysis Date: February 26, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
NVIDIA Corporation is a technology company that specializes in making powerful graphics cards and computer systems. Their products help improve the visual experience for gamers and are also used in professional settings like design and data analysis. Additionally, NVIDIA works on technologies for self-driving cars and artificial intelligence. They sell their products to various businesses, including computer makers, game developers, and automotive companies around the world.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$114.58
Current Market Price: $93.97
IV/P Ratio: 1.22x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
18.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for NVDA
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (31.69)
P/B ratio ≤ 1.5 (29.11)
Current ratio ≥ 2.0 (4.44x)
Long-term debt < Net current assets (0.16x)
Margin of safety (18.0%)
NVDA does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
115.44%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
74.99%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
55.85%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
NVIDIA's net profit margin is approximately 55.8%, indicating a robust ability to convert sales into actual profit.
The operating profit margin stands at 62.4%, reflecting efficient operational management and cost control.
The P/FCF ratio is 46.70, indicating that the stock may be overvalued compared to its free cash flow generation.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.13x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2025
Current Ratio
Current assets divided by current liabilities
4.44x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2025
NVIDIA's current ratio of 4.44 and quick ratio of 3.88 demonstrate excellent short-term liquidity and ability to cover current liabilities.
The debt-to-equity ratio of 0.13 indicates that NVIDIA is conservatively financed, posing less risk during economic downturns.
With a cash ratio of 0.48, there is some concern about immediate liquidity, as cash reserves may not fully cover current liabilities.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
NVIDIA has demonstrated a robust business model with significant revenue growth. In Q4, they reported a record revenue of $39.3 billion, up 78% year on year, with data center revenue exceeding $115 billion for the fiscal year, more than doubling from the previous year.
NVIDIA's architecture, particularly the Blackwell platform, is designed to handle diverse AI tasks across pretraining, post-training, and inference. The company maintains a strong competitive edge with the fastest product ramp in its history, showcasing its ability to innovate and meet market demands effectively.
NVIDIA's product portfolio is widely adopted across various industries, including automotive, healthcare, and consumer tech. Their technology is embedded within major cloud service providers, reflecting a strong market position and extensive customer base.
Despite strong growth in other areas, NVIDIA's networking revenue saw a sequential decline of 3%. This indicates potential challenges in one segment of their business model, which could affect overall performance.
NVIDIA expects total revenue of $43 billion in Q1 2026, with continued strong demand for AI infrastructure. The company is well-positioned to benefit from the rapid growth of the AI market, especially with the upcoming Blackwell Ultra and Vera Rubin architectures.
NVIDIA is investing in advanced technologies, such as reasoning AI and physical AI, which will likely drive new market opportunities. Their emphasis on software and hardware integration positions them to capture significant market share as industries increasingly adopt AI solutions.
NVIDIA's shipments to China have been limited due to export controls, impacting their potential revenue from a significant market. The company anticipates that the current percentage of sales in China may remain stable but below previous levels, which poses a risk to growth.