Nvidia (NVDA) AI Stock Analysis

• Market Cap: $0.00
• Dividend Yield: 0.02%
• Average Volume (3M): 168.63M
• Price to Earnings (P/E): 58.0
• Beta (1Y): 0.00
• Revenue Growth: 86.17%
• EPS Growth: 81.36%
• Country: US
• Employees: 36,000
• Sector: Technology
• Sector Strength: 92
• Industry: Semiconductors
• EPS (TTM): 0.81
• Shares Outstanding: 0
• 10 Day Avg. Volume: 164,130,007
• 30 Day Avg. Volume: 168,634,635
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $186.14
• Price Target Upside: 4.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 39

• Rating: 82 Outperform
• Price Target: $198.00 ▲(11.07% Upside)

Nvidia's strong financial performance and positive earnings call highlight its leadership in the semiconductor industry, driven by robust growth in AI and data center segments. Technical indicators suggest a strong bullish trend, although valuation concerns due to a high P/E ratio and overbought signals may pose risks. The strategic focus on AI offsets geopolitical challenges, supporting a positive outlook.

Positive Factors

Capital Expenditure

Four of the five US cloud service providers are expected to increase capital expenditures, driven by AI demand.

Licensing and Sales

Nvidia expects to begin selling its H20 chips designed for the Chinese market once again.

Market Opportunity

Shares of NVDA are up 5% in premarket trading as investors see an opportunity for Nvidia to tap into the $50 billion China TAM for AI chips.

Negative Factors

Competitive Risk

There is a risk that H20 could become increasingly uncompetitive over time as local competition emerges.

Regulatory Risk

H20 sales may be subject to potential security/backdoor probes by Chinese regulators, which could affect performance.

Uncertainty in Sales Recovery

There is uncertainty about China's sales recovery to prior levels following the H20 ban reversal.

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
EBITDA	90.97B	86.14B	35.58B	5.99B	11.35B	5.69B
Net Income	76.77B	72.88B	29.76B	4.37B	9.75B	4.33B
Balance Sheet
Total Assets	125.25B	111.60B	65.73B	41.18B	44.19B	28.79B
Cash, Cash Equivalents and Short-Term Investments	52.69B	43.21B	25.98B	13.30B	21.21B	11.56B
Total Debt	10.29B	10.27B	11.06B	12.03B	11.83B	7.72B
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: 178.26
• 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 178.26 is above the 20-day moving average (MA) of 172.06, above the 50-day MA of 156.38, and above the 200-day MA of 135.19, indicating a bullish trend. The MACD of 6.49 indicates Positive momentum. The RSI at 65.34 is Neutral, neither overbought nor oversold. The STOCH value of 62.23 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	82 Outperform	$0.00	57.98	115.46%	0.02%	86.17%	81.36%
AMD	80 Outperform	$0.00	127.77	3.90%	―	21.71%	99.00%
QCOM	77 Outperform	$159.90B	14.29	44.62%	2.32%	15.82%	34.20%
TSM	77 Outperform	$1.00T	26.46	33.29%	1.15%	38.65%	―
AVGO	73 Outperform	$1.38T	111.92	18.98%	0.80%	33.85%	14.43%
Sector *	62 Neutral	$34.76B	5.42	-10.49%	2.07%	6.42%	-8.85%
INTC	49 Neutral	$88.37B	―	-19.24%	2.59%	-3.72%	-2120.70%

Nvidia Corporate Events

Nvidia Stockholders Approve Key Proposals at Annual Meeting

On June 25, 2025, Nvidia held its Annual Meeting of Stockholders where several proposals were voted on. Stockholders approved the election of all thirteen director nominees and the compensation of named executive officers. Additionally, the ratification of PricewaterhouseCoopers LLP as the independent registered accounting firm was approved. However, proposals to amend the Certificate of Incorporation to remove supermajority provisions, eliminate the holding period requirement for calling special meetings, adopt a new director election resignation policy, and modify workforce data reporting were not approved. These decisions reflect the company’s current governance and operational strategies, impacting its corporate structure and stakeholder engagement.

The most recent analyst rating on (NVDA) stock is a Hold with a $100.00 price target. To see the full list of analyst forecasts on Nvidia stock, see the NVDA Stock Forecast page.