Nvidia (NVDA) AI Stock Analysis

• Market Cap: $4.57T
• Dividend Yield: 0.02%
• Average Volume (3M): 159.97M
• Price to Earnings (P/E): 46.6
• Beta (1Y): 2.26
• Revenue Growth: 65.22%
• EPS Growth: 58.53%
• Country: US
• Employees: 36,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): N/A
• Shares Outstanding: 24,300,000,000
• 10 Day Avg. Volume: 146,116,818
• 30 Day Avg. Volume: 159,967,365
• PEG Ratio: 0.27
• Price to Book (P/B): 36.66
• Price to Sales (P/S): 22.28
• P/FCF Ratio: 47.78
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 25.09
• Enterprise Value/Gross Profit: 35.81
• Enterprise Value/Ebitda: 39.42
• 1Y Price Target: $268.57
• Price Target Upside: 40.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 34
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $205.00 ▲(7.02% Upside)
• Action: Reiterated Date: 11/21/25
• Date: Action: Reiterated 11/21/25

Nvidia's strong financial performance and positive earnings call sentiment are the most significant factors driving the stock score. However, technical analysis indicates potential bearish momentum, and the high valuation suggests limited upside potential. Despite geopolitical and inventory challenges, Nvidia's strategic focus on AI and data center expansion positions it well for sustained long-term growth.

Positive Factors

Revenue Growth

Nvidia's substantial revenue growth underscores its strong market position and successful expansion in AI and data centers, supporting long-term growth.

Strategic Partnerships

Strategic partnerships in AI infrastructure enhance Nvidia's competitive edge and market reach, fostering sustainable growth and innovation.

Cash Generation

Strong cash generation capabilities provide Nvidia with the flexibility to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Geopolitical Challenges

Geopolitical challenges in China could impact Nvidia's ability to capitalize on the growing demand for data center products, affecting future revenue.

Inventory Management

Rising inventory levels may indicate potential supply chain inefficiencies, which could strain resources and impact profitability if not managed effectively.

Regulatory Uncertainty

Regulatory uncertainty regarding sales to China could limit Nvidia's market access and growth potential in a key region, affecting long-term strategy.

Nvidia Business Overview & Revenue Model

Company Description

NVIDIA Corporation provides graphics, and compute and networking solutions in the United States, Taiwan, China, and internationally. The company's Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building 3D designs and virtual worlds. Its Compute & Networking segment provides Data Center platforms and systems for AI, HPC, and accelerated computing; Mellanox networking and interconnect solutions; automotive AI Cockpit, autonomous driving development agreements, and autonomous vehicle solutions; cryptocurrency mining processors; Jetson for robotics and other embedded platforms; and NVIDIA AI Enterprise and other software. The company's products are used in gaming, professional visualization, datacenter, and automotive markets. NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, independent software vendors, Internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants. It has a strategic collaboration with Kroger Co. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.

How the Company Makes Money

Nvidia generates revenue primarily through the sale of its GPUs and related products, which cater to gamers, professionals, and enterprises. The company's key revenue streams include its Gaming segment, which consists of graphics cards and gaming notebooks, and its Data Center segment, which provides GPUs and systems for AI and high-performance computing applications. Additionally, Nvidia earns revenue from its Professional Visualization segment, which serves industries requiring advanced graphics solutions. Strategic partnerships with major technology firms, cloud service providers, and automotive manufacturers further enhance its earnings, as they often integrate Nvidia's technology into their products and services. Furthermore, Nvidia's investments in AI and machine learning have positioned it as a leader in these growing fields, contributing significantly to its revenue growth.

Nvidia Financial Statement Overview

Summary

Nvidia's financial statements reflect excellent financial health, characterized by strong revenue growth, high profitability, and efficient cash generation. The balance sheet is robust with low leverage, and the company demonstrates effective capital management. Nvidia is well-positioned for continued growth and stability in the semiconductor industry.

Income Statement

Nvidia's income statement shows impressive growth and profitability. The TTM revenue growth rate is 13.27%, indicating strong sales momentum. Gross profit margin stands at 70.05%, and net profit margin at 53.01%, both reflecting excellent cost management and profitability. EBIT and EBITDA margins are robust at 39.62% and 60.30%, respectively, showcasing operational efficiency. The company has consistently improved its financial performance over the years.

Balance Sheet

Nvidia's balance sheet is solid with a low debt-to-equity ratio of 0.09, indicating minimal leverage and financial risk. The return on equity is exceptionally high at 103.82%, demonstrating effective use of shareholder funds. The equity ratio is healthy, reflecting a strong capital structure. Overall, the balance sheet suggests financial stability and low risk.

Cash Flow

The cash flow statement highlights strong cash generation capabilities. Free cash flow growth is positive at 7.36%, and the operating cash flow to net income ratio is 3.19, indicating efficient cash conversion. The free cash flow to net income ratio of 0.93 further underscores the company's ability to generate cash relative to its earnings. Nvidia's cash flow position supports its growth and investment strategies.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	187.14B	130.50B	60.92B	26.97B	26.91B	16.68B
Gross Profit	131.09B	97.86B	44.30B	15.36B	17.48B	10.40B
EBITDA	119.09B	86.14B	35.58B	5.99B	11.35B	5.69B
Net Income	99.20B	72.88B	29.76B	4.37B	9.75B	4.33B
Balance Sheet
Total Assets	161.15B	111.60B	65.73B	41.18B	44.19B	28.79B
Cash, Cash Equivalents and Short-Term Investments	60.61B	43.21B	25.98B	13.30B	21.21B	11.56B
Total Debt	10.82B	10.27B	11.06B	12.03B	11.83B	7.72B
Total Liabilities	42.25B	32.27B	22.75B	19.08B	17.57B	11.90B
Stockholders Equity	118.90B	79.33B	42.98B	22.10B	26.61B	16.89B
Cash Flow
Free Cash Flow	77.32B	60.85B	27.02B	3.81B	8.13B	4.69B
Operating Cash Flow	83.16B	64.09B	28.09B	5.64B	9.11B	5.82B
Investing Cash Flow	-28.57B	-20.42B	-10.57B	7.38B	-9.83B	-19.68B
Financing Cash Flow	-52.22B	-42.36B	-13.63B	-11.62B	1.86B	3.80B

Nvidia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 191.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 191.55 is above the 20-day moving average (MA) of 186.41, above the 50-day MA of 184.93, and above the 200-day MA of 173.56, indicating a bullish trend. The MACD of 1.04 indicates Negative momentum. The RSI at 56.76 is Neutral, neither overbought nor oversold. The STOCH value of 75.67 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
TSM	82 Outperform	$1.57T	34.08	36.46%	0.82%	39.73%	56.22%
NVDA	76 Outperform	$4.57T	46.56	107.36%	0.02%	65.22%	58.53%
AVGO	73 Outperform	$1.58T	69.99	31.05%	0.69%	23.87%	285.84%
AMD	71 Outperform	$326.28B	76.89	7.08%	―	31.83%	80.45%
QCOM	64 Neutral	$152.84B	29.59	21.48%	2.01%	13.66%	-45.40%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INTC	57 Neutral	$227.07B	-544.81	-0.25%	―	-1.49%	―