Nvidia (NVDA) AI Stock Analysis

• Market Cap: $3.53T
• Dividend Yield: 0.03%
• Average Volume (3M): 207.05M
• Price to Earnings (P/E): 46.6
• Beta (1Y): 2.32
• Revenue Growth: 86.17%
• EPS Growth: 81.36%
• Country: US
• Employees: 36,000
• Sector: Technology
• Sector Strength: 82
• Industry: Semiconductors
• EPS (TTM): 0.81
• Shares Outstanding: 24,400,000,000
• 10 Day Avg. Volume: 181,410,629
• 30 Day Avg. Volume: 207,051,199
• PEG Ratio: -1.78
• Price to Book (P/B): 12.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.27
• Enterprise Value/Market Cap: 0.04
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 1.33
• Enterprise Value/Ebitda: 0.44
• 1Y Price Target: $173.19
• Price Target Upside: 19.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 40

• Rating: 85 Outperform
• Price Target: $159.00 ▲(9.29%Upside)

Nvidia's overall stock score is driven primarily by its strong financial performance and robust technical indicators, which reflect significant growth and positive momentum. Although the valuation suggests a premium, the company's strategic focus on AI and infrastructure positions it well for future expansion. Earnings call insights support a positive outlook, despite some geopolitical risks.

Positive Factors

AI Infrastructure

NVIDIA's significant beat/raise after accounting for $2.5B/$8.0B H20 impact in F1Q/F2Q once again demonstrate that demand for AI infrastructure remains very robust, and NVIDIA is leading the industry.

Market Leadership

NVIDIA continues to be the market leader.

Strategic Partnerships

Strategic partnership to build AI cloud infrastructure with French startup Mistral AI.

Negative Factors

China Market Competition

The team assumes no revenue going forward from China domestic customers due to adequate alternatives like Huawei XPU accelerator.

China Restrictions

China-related revenues will see a significant decrease in F2Q, with limited future options given strict restrictions at the moment.

Revenue Impact

Ex-China restriction, NVIDIA's revenue would have been $10B higher across JanQ/AprQ, a healthy beat above Street pre-adjustments and larger in magnitude than NVIDIA's recent standard.

Nvidia Business Overview & Revenue Model

Company Description

Nvidia Corporation, commonly known as Nvidia, is a leading technology company specializing in the design and manufacturing of graphics processing units (GPUs) and related software. Founded in 1993 and headquartered in Santa Clara, California, Nvidia operates primarily in the computing and semiconductor sectors. The company is renowned for its high-performance GPUs, which are used in a wide range of applications, including gaming, professional visualization, data centers, and automotive technology. Nvidia's innovations in AI computing have positioned it as a key player in the advancement of artificial intelligence and machine learning technologies.

How the Company Makes Money

Nvidia generates revenue through several key streams. The primary source of income is from the sale of its GPUs, which are utilized in gaming, data centers, and professional visualization markets. The gaming sector remains a significant revenue driver, with Nvidia's GeForce line being particularly popular among gamers. Another major revenue stream comes from data center solutions, where Nvidia's GPUs are used for AI and high-performance computing tasks, catering to businesses and research institutions. Additionally, Nvidia earns from its automotive segment by providing AI-based solutions for autonomous vehicles. The company also benefits from strategic partnerships and collaborations with tech giants and automotive manufacturers, further enhancing its market penetration and revenue potential. Nvidia's software and services offerings, including its AI platforms and cloud-based solutions, contribute to its diversified revenue model, ensuring steady growth across multiple sectors.

Nvidia Financial Statement Overview

Summary

Nvidia shows exceptional financial performance with high revenue and profit growth, an efficient capital structure, and robust cash generation. The income statement reflects strong demand and market expansion, while the balance sheet indicates financial stability with low leverage. Despite high profitability posing potential risks if growth slows, Nvidia's financial foundation supports future growth.

Income Statement

Nvidia demonstrates exceptional growth and profitability in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 70.13%, indicating strong cost management. The net profit margin stands at 51.68%, reflecting high profitability. Revenue growth is outstanding, with a 146.25% increase from the prior year, underscoring robust demand and market expansion. EBIT and EBITDA margins are impressive at 58.02% and 61.25%, respectively, showcasing operational efficiency. Overall, Nvidia's income statement is a testament to its leading position in the semiconductor industry.

Balance Sheet

Nvidia's balance sheet is solid, with a debt-to-equity ratio of 0.12, indicating low leverage and financial stability. The return on equity (ROE) is a remarkable 91.56%, reflecting efficient use of shareholder capital. The equity ratio stands at 66.94%, suggesting a strong equity position relative to total assets. Nvidia's balance sheet highlights a well-capitalized company with prudent financial management, though the high ROE may indicate potential risks if growth slows.

Cash Flow

Nvidia's cash flow analysis reveals strong operational cash generation with an operating cash flow to net income ratio of 0.99, indicating high conversion of income to cash. The free cash flow has grown significantly by 18.42% from the previous year, reflecting effective capital expenditure management. The free cash flow to net income ratio is 0.94, showing efficient cash utilization. Nvidia's cash flow statements underscore robust liquidity and financial flexibility, supporting continued growth and investment.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
148.51B	130.50B	60.92B	26.97B	26.91B	16.68B
	Gross Profit
104.12B	97.86B	44.30B	15.36B	17.48B	10.40B
	EBIT
86.18B	81.45B	32.97B	4.22B	10.04B	4.53B
	EBITDA
90.97B	86.14B	35.58B	5.99B	11.35B	5.69B
	Net Income Common Stockholders
76.77B	72.88B	29.76B	4.37B	9.75B	4.33B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
52.69B	43.21B	25.98B	13.30B	21.21B	11.56B
	Total Assets
125.25B	111.60B	65.73B	41.18B	44.19B	28.79B
	Total Debt
10.29B	10.27B	11.06B	12.03B	11.83B	7.72B
	Net Debt
-4.95B	1.68B	3.78B	8.64B	9.84B	6.87B
	Total Liabilities
41.41B	32.27B	22.75B	19.08B	17.57B	11.90B
	Stockholders Equity
83.84B	79.33B	42.98B	22.10B	26.61B	16.89B
Cash Flow		Free Cash Flow
72.06B	60.85B	27.02B	3.81B	8.13B	4.69B
	Operating Cash Flow
76.16B	64.09B	28.09B	5.64B	9.11B	5.82B
	Investing Cash Flow
-19.94B	-20.42B	-10.57B	7.38B	-9.83B	-19.68B
	Financing Cash Flow
-48.57B	-42.36B	-13.63B	-11.62B	1.86B	3.80B

Nvidia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 145.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVDA, the sentiment is Positive. The current price of 145.48 is above the 20-day moving average (MA) of 139.67, above the 50-day MA of 124.53, and above the 200-day MA of 127.92, indicating a bullish trend. The MACD of 5.39 indicates Positive momentum. The RSI at 66.26 is Neutral, neither overbought nor oversold. The STOCH value of 79.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVDA.

Nvidia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVDA	85 Outperform	$3.53T	46.61	115.46%	0.03%	86.17%	81.36%
AMD	81 Outperform	$204.93B	93.17	3.90%	―	21.71%	99.00%
AVGO	80 Outperform	$1.17T	93.74	18.98%	0.94%	33.85%	14.43%
QCOM	80 Outperform	$169.60B	15.73	42.21%	2.32%	16.15%	32.28%
TSM	77 Outperform	$899.82B	27.75	32.11%	1.28%	35.45%	47.97%
Sector *	62 Neutral	$11.95B	9.93	-7.21%	4.85%	7.32%	-8.25%
INTC	47 Neutral	$90.47B	―	-18.66%	2.33%	-3.97%	-562.40%

Nvidia Corporate Events

Nvidia Appoints Ellen Ochoa to Board of Directors

NVIDIA Corporation has appointed Ellen Ochoa to its Board of Directors, increasing the board count to thirteen. Ochoa will join the Nominating and Corporate Governance Committee, receiving initial and pro-rated equity grants as part of her compensation, along with a cash retainer. This move reflects NVIDIA’s commitment to strengthening its governance and leadership framework.