Nvidia (NVDA) AI Stock Analysis

• Market Cap: $4.53T
• Dividend Yield: 0.02%
• Average Volume (3M): 187.12M
• Price to Earnings (P/E): 51.6
• Beta (1Y): 2.34
• Revenue Growth: 71.55%
• EPS Growth: 64.54%
• Country: US
• Employees: 36,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.30
• Shares Outstanding: 24,300,000,000
• 10 Day Avg. Volume: 197,088,090
• 30 Day Avg. Volume: 187,118,188
• 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: 1.00
• Enterprise Value/Revenue: 27.30
• Enterprise Value/Gross Profit: 39.09
• Enterprise Value/Ebitda: 45.24
• 1Y Price Target: $255.63
• Price Target Upside: 37.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 40
• EPS Forecast (FY): 4.57
• Revenue Forecast (FY): $208.36B

• Rating: 76 Outperform
• Price Target: $205.00 ▲(9.91% Upside)

Nvidia's strong financial performance and strategic growth in AI and data centers are major strengths, contributing to a high overall score. However, high valuation and technical indicators showing mixed signals temper the outlook. Challenges in China and inventory management present risks, but the company's strategic focus on AI positions it well for long-term growth.

Positive Factors

Revenue Growth

Nvidia's impressive revenue growth indicates strong market demand and effective business strategies, particularly in AI and data centers.

Strategic Partnerships

Strategic partnerships enhance Nvidia's market reach and innovation capacity, supporting long-term growth in AI and computing sectors.

Cash Generation

Strong cash generation supports Nvidia's liquidity and investment capabilities, ensuring financial stability and growth potential.

Negative Factors

Geopolitical Challenges

Geopolitical challenges in China may impact Nvidia's ability to capitalize on market opportunities, affecting future revenue streams.

Inventory Management

Rising inventory levels suggest potential supply chain inefficiencies, which could lead to increased costs and reduced profitability.

Free Cash Flow Decline

A decline in free cash flow growth may limit Nvidia's ability to invest in new opportunities, impacting long-term growth prospects.

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 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 demonstrates outstanding financial health with strong revenue growth, high profitability, and a robust balance sheet. Despite a minor dip in free cash flow growth, the company effectively manages its leverage and equity, while maintaining solid cash flow generation.

Income Statement

Nvidia's income statement shows strong financial performance with a significant revenue growth rate of 11.25% TTM, indicating robust demand and market expansion. The company maintains high profitability with a gross profit margin of 69.85% and a net profit margin of 52.41% TTM, showcasing efficient cost management and strong pricing power. The EBIT and EBITDA margins are also impressive at 42.14% and 60.34% TTM, respectively, reflecting operational efficiency and effective cost control.

Balance Sheet

Nvidia's balance sheet is solid with a low debt-to-equity ratio of 0.10 TTM, indicating prudent financial leverage and a strong equity base. The return on equity is exceptionally high at 105.22% TTM, demonstrating effective use of shareholders' funds to generate profits. The equity ratio stands at 71.14% TTM, highlighting a strong capital structure with significant equity financing.

Cash Flow

Nvidia's cash flow statement reveals a slight decline in free cash flow growth at -5.70% TTM, which could be a point of concern. However, the operating cash flow to net income ratio of 3.18 TTM indicates strong cash generation relative to earnings. The free cash flow to net income ratio of 93.49% TTM suggests that the company effectively converts its earnings into cash, supporting its liquidity and investment capabilities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	165.22B	130.50B	60.92B	26.97B	26.91B	16.68B
Gross Profit	115.40B	97.86B	44.30B	15.36B	17.48B	10.40B
EBITDA	99.70B	86.14B	35.58B	5.99B	11.35B	5.69B
Net Income	86.60B	72.88B	29.76B	4.37B	9.75B	4.33B
Balance Sheet
Total Assets	140.74B	111.60B	65.73B	41.18B	44.19B	28.79B
Cash, Cash Equivalents and Short-Term Investments	56.79B	43.21B	25.98B	13.30B	21.21B	11.56B
Total Debt	10.60B	10.27B	11.06B	12.03B	11.83B	7.72B
Total Liabilities	40.61B	32.27B	22.75B	19.08B	17.57B	11.90B
Stockholders Equity	100.13B	79.33B	42.98B	22.10B	26.61B	16.89B
Cash Flow
Free Cash Flow	72.02B	60.85B	27.02B	3.81B	8.13B	4.69B
Operating Cash Flow	77.03B	64.09B	28.09B	5.64B	9.11B	5.82B
Investing Cash Flow	-23.89B	-20.42B	-10.57B	7.38B	-9.83B	-19.68B
Financing Cash Flow	-50.08B	-42.36B	-13.63B	-11.62B	1.86B	3.80B

Nvidia Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 186.52
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVDA, the sentiment is Neutral. The current price of 186.52 is below the 20-day moving average (MA) of 193.32, above the 50-day MA of 186.44, and above the 200-day MA of 152.45, indicating a neutral trend. The MACD of -0.83 indicates Positive momentum. The RSI at 42.75 is Neutral, neither overbought nor oversold. The STOCH value of 17.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NVDA.

Nvidia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASML	81 Outperform	$390.21B	37.57	51.72%	0.67%	24.91%	39.95%
TSM	81 Outperform	$1.16T	28.48	34.89%	1.03%	39.73%	56.22%
AMD	80 Outperform	$363.95B	110.48	5.32%	―	31.83%	80.45%
NVDA	76 Outperform	$4.53T	51.62	107.36%	0.02%	71.55%	64.54%
AVGO	76 Outperform	$1.67T	86.99	27.08%	0.67%	28.01%	235.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INTC	56 Neutral	$167.47B	3,312.26	0.19%	―	-1.49%	―

Nvidia Corporate Events

NVIDIA Reports Record Revenue and Strong Growth

NVIDIA Corporation is a leading player in the AI and accelerated computing industry, known for its advanced graphics processing units (GPUs) and cutting-edge AI technologies. The company has a strong presence in data centers, gaming, professional visualization, automotive, and robotics sectors.

Morningstar Investment Boosts Stake in Nvidia Corporation

H&H International Investment Reduces Stake in Nvidia

Viking Global Investors LP Reduces Stake in Nvidia

Maverick Capital Ltd Reduces Stake in Nvidia

Soros Fund Management LLC Increases Stake in Nvidia

Chilton Investment Co LLC Boosts Nvidia Holdings

Altimeter Capital Reduces Stake in Nvidia Corporation

Driehaus Capital Management Reduces Stake in Nvidia

Coatue Management Reduces Nvidia Holdings by 1.6 Million Shares

Clough Capital Partners Boosts Stake in Nvidia Corporation

Graham Capital Management Reduces Stake in Nvidia

Blackstone Inc. Increases Stake in Nvidia Corporation

Gilder Gagnon Howe Reduces Nvidia Holdings by 60,570 Shares

D1 Capital Partners LP Boosts Stake in Nvidia

Woodline Partners LP Boosts Stake in Nvidia

Atreides Management, LP Reduces Nvidia Holdings by 115,090 Shares

Moore Capital Management LP Reduces Stake in Nvidia

Mairs & Power Inc Reduces Stake in Nvidia Corporation

Appaloosa Management LP Boosts Stake in Nvidia

Platinum Investment Management Reduces Nvidia Holdings by 1,208 Shares

Columbus Hill Capital Boosts Nvidia Stake with 57,800 Shares

Blue Grotto Capital Reduces Stake in Nvidia Corporation

Bowie Capital Management Reduces Stake in Nvidia

MIG Capital, Llc Increases Stake in Nvidia Corporation

SCS Capital Management LLC Reduces Stake in Nvidia

Crake Asset Management LLP Boosts Stake in Nvidia

Bridgewater Associates Reduces Stake in Nvidia Corporation

Sands Capital Management LLC Reduces Nvidia Holdings

Dodge & Cox Increases Stake in Nvidia Corporation

ARK Investment’s Cathie Wood Increases Stake in Nvidia

XN LP Boosts Stake in Nvidia with 79,987 Shares

Fisher Asset Management Boosts Nvidia Stake by 2 Million Shares

PRIMECAP Management Co Reduces Stake in Nvidia

Gamco Investors Reduces Stake in Nvidia Corporation

Cypress Funds Llc Reduces Stake in Nvidia Corporation

Progressive Investment Management Corp Reduces Nvidia Stake

Manning & Napier Advisors LLC Boosts Nvidia Stake

Robert Bender&Associates Reduces Stake in Nvidia

Suncoast Equity Management Reduces Stake in Nvidia

Penn Davis Mcfarland Inc Reduces Nvidia Holdings Significantly

Mirova US LLC Reduces Stake in Nvidia Corporation

Nvidia’s Earnings Call: Record Revenue and Growth

Nvidia’s Latest Earnings Call: A Strong Quarter with Record Revenue and Growth

NVIDIA Reports Strong Q2 Growth in AI and Data Centers

NVIDIA Corporation, a leader in accelerated computing and AI technology, has reported its financial results for the second quarter of fiscal 2026, showcasing significant growth across its various sectors. The company is renowned for its innovative products and solutions in data centers, gaming, professional visualization, and automotive industries.