Nvidia (NVDA) AI Stock Analysis

• Market Cap: $4.44T
• Dividend Yield: 0.02%
• Average Volume (3M): 159.61M
• Price to Earnings (P/E): 57.9
• Beta (1Y): 2.33
• Revenue Growth: 86.17%
• EPS Growth: 81.36%
• Country: US
• Employees: 36,000
• Sector: Technology
• Sector Strength: 83
• Industry: Semiconductors
• EPS (TTM): 1.05
• Shares Outstanding: 24,400,000,000
• 10 Day Avg. Volume: 161,998,010
• 30 Day Avg. Volume: 159,612,029
• 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: 0.61
• Enterprise Value/Revenue: 18.10
• Enterprise Value/Gross Profit: 25.82
• Enterprise Value/Ebitda: 29.56
• 1Y Price Target: $212.00
• Price Target Upside: 16.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 39

• Rating: 84 Outperform
• Price Target: $213.00 ▲(17.29% Upside)

Nvidia's strong financial performance and positive earnings call are the most significant factors driving the high overall score. The technical analysis supports a bullish outlook, though the high valuation presents some risk if growth expectations are not met. Geopolitical challenges and high operating expenses are concerns, but the company's strategic focus on AI infrastructure and global expansion mitigate these risks.

Positive Factors

AI market positioning

Nvidia's leadership positioning in AI infrastructure remains unchallenged, with GB300 specifications expected to remain best-in-class.

Cloud partnerships

Nvidia Cloud Partners initiative is rapidly expanding, targeting enterprise private clouds for GPU as a service and AI as a service.

Revenue growth potential

Management expects production shipments of GB300 this quarter and a more meaningful ramp in subsequent quarters, supporting double-digit revenue growth.

Negative Factors

China market uncertainties

NVDA's guidance is expected to exclude direct revenue from China due to pending license approvals and uncertainty on timing.

Hyperscaler demand concerns

There are concerns regarding hyperscaler demand and sustainability of infrastructure investment due to an 'AI bubble' and underwhelming GPT-5 launch reports.

Potential margin pressure

Potential margin pressure on early GB300 ramps is a concern for investors.

Nvidia Business Overview & Revenue Model

Company Description

Nvidia Corporation is a global technology company primarily known for its graphics processing units (GPUs) that power a range of applications from gaming to artificial intelligence (AI) and data centers. Founded in 1993 and headquartered in Santa Clara, California, Nvidia operates in several key sectors, including gaming, professional visualization, data center, and automotive. The company is renowned for its GeForce product line for gaming, Quadro for professional visualization, and the Tesla and A100 series for data centers and AI computing. Nvidia also offers software platforms and services that complement its hardware, such as the CUDA programming model and the NVIDIA Omniverse for collaborative 3D design.

How the Company Makes Money

Nvidia generates revenue primarily through the sale of its GPUs and related hardware across various sectors. The gaming segment is a significant revenue driver, with high demand for GeForce GPUs among gamers and PC builders. The data center segment has seen substantial growth, fueled by the increasing need for AI processing power and cloud computing services, where Nvidia's GPUs are used for machine learning tasks. Additionally, Nvidia earns revenue from its professional visualization products, which cater to industries such as architecture and design. The company also engages in strategic partnerships, such as collaborations with cloud service providers and OEMs, which enhance its market penetration and expand its customer base. Furthermore, Nvidia has been investing in software solutions and AI-driven services, creating new revenue streams that complement its hardware offerings, thereby contributing to its overall earnings.

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: 181.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 181.6 is above the 20-day moving average (MA) of 179.56, above the 50-day MA of 169.23, and above the 200-day MA of 138.45, indicating a bullish trend. The MACD of 2.88 indicates Positive momentum. The RSI at 60.90 is Neutral, neither overbought nor oversold. The STOCH value of 84.78 is Negative, 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	84 Outperform	$4.44T	57.92	115.46%	0.02%	86.17%	81.36%
ASML	81 Outperform	$293.43B	28.89	56.14%	0.88%	27.09%	40.94%
AVGO	79 Outperform	$1.40T	110.60	18.98%	0.77%	33.85%	14.43%
AMD	77 Outperform	$270.40B	95.91	4.70%	―	27.17%	108.67%
TSM	77 Outperform	$997.16B	26.82	33.29%	1.13%	38.65%	57.18%
TXN	70 Outperform	$187.26B	37.65	29.84%	2.65%	3.62%	-5.27%
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%

Nvidia Corporate Events

Ellen Ochoa Resigns from Nvidia Board of Directors

On July 31, 2025, Ellen Ochoa resigned from Nvidia Corporation’s Board of Directors, including her role in the Nominating and Corporate Governance Committee, due to personal reasons. Her departure is not related to any disagreements with the company’s operations, policies, or practices.

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.