One-glance verdict
Overvalued
$131.99 our estimate vs market $233.95
Wall Street consensus: $327.70 (148.3% higher than our fair-value estimate)
77% above our estimate, beyond the bull case
Fundamentals snapshot
NVIDIA Corporation
NVDA · NMS · Technology · Semiconductors
Current price
$233.95
52-week range
$164.27 - $237.87
Market cap
$5.65T
Balance sheet
Healthy
503.42x Strong cushion
Net cash $23.61B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 40.3% last year.
- Reward Returns 117.2% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 6/10 years.
What this company does
NVIDIA Corporation
NVIDIA designs powerful computer chips, called graphics processing units (GPUs), that were originally created for realistic video games. Today, the company makes most of its money by selling these chips to operate data centers (massive computer warehouses that power the internet and AI), which has made its technology fundamental to the artificial intelligence industry.
How the company got here
Founded in 1993, NVIDIA started by creating specialized computer chips for better 3D graphics in video games. A key turning point was the invention of the Graphics Processing Unit (GPU) in 1999, a chip that could handle many calculations at once, making it ideal for complex visuals. In 2006, the company released a software platform called CUDA, which allowed developers to use the parallel processing power of GPUs for tasks beyond graphics, like scientific research. This move positioned NVIDIA perfectly for the recent explosion in artificial intelligence (AI), as their GPUs are essential for training and running advanced AI systems like ChatGPT.
What it actually does
NVIDIA designs and sells powerful computer chips, primarily Graphics Processing Units (GPUs), that act as the brains for demanding computing tasks. While you might find their GeForce chips in a personal computer to make video games look incredibly realistic, their technology is also at the heart of massive data centers (large groups of networked computer servers) that power AI and cloud services. The company also creates the software that allows developers to harness the power of these chips for everything from creating special effects in movies to developing self-driving cars.
Compute & Networking
This is NVIDIA's largest and fastest-growing business, making up the vast majority of the company's revenue. It provides the powerful chips and networking equipment that are the foundation of modern data centers, the engine rooms of the internet and AI. Big cloud companies and enterprises buy these products to train and run artificial intelligence applications, perform complex scientific simulations, and manage huge amounts of data. This segment also includes the technology for self-driving cars and other automated systems.
Graphics
This segment contains NVIDIA's original and most well-known products, the GeForce GPUs for gaming PCs. Gamers and PC enthusiasts buy these graphics cards to get the best possible visual performance and realism in their games. This division also sells professional-grade GPUs, under the Quadro/NVIDIA RTX brands, which are used by designers, artists, and engineers for tasks like creating 3D models and special effects for movies. While once the core of the company, it is now a smaller piece of NVIDIA's overall business compared to their data center work.
What management is betting on now
NVIDIA is focused on becoming the essential platform for the entire artificial intelligence industry, creating what it calls "AI factories." The strategy involves not just selling more powerful chips, but building a complete ecosystem (a network of interconnected products and software) that developers and companies rely on for creating AI. This includes investing in and acquiring companies like Hugging Face, a major hub for the AI developer community, to ensure continued demand for its hardware. The company is also pushing to get its technology into a wider range of products, from enterprise servers to AI-powered personal computers and robots, aiming to make its platform the standard for this new era of computing.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$16.81B
FY2025 Q4
$15.55B
FY2026 Q1
$26.19B
FY2026 Q2
$13.47B
FY2026 Q3
$22.11B
FY2026 Q4
$34.90B
FY2027 Q1
$48.59B
FY2027 Q2
$21.40B
Revenue
$96.22B
Net income
$59.69B
Diluted EPS
2.46
Operating cash flow
$24.08B
Free cash flow
$21.40B
Fetching…
Sources
Revenue
$81.61B
Net income
$58.32B
Diluted EPS
2.39
Operating cash flow
$50.34B
Free cash flow
$48.59B
Fetching…
Sources
Revenue
$68.13B
Net income
$42.96B
Diluted EPS
1.76
Operating cash flow
$36.19B
Free cash flow
$34.90B
Fetching…
Sources
Revenue
$57.01B
Net income
$31.91B
Diluted EPS
1.30
Operating cash flow
$23.75B
Free cash flow
$22.11B
Fetching…
Sources
Revenue
$46.74B
Net income
$26.42B
Diluted EPS
1.08
Operating cash flow
$15.37B
Free cash flow
$13.47B
Fetching…
Sources
Revenue
$44.06B
Net income
$18.77B
Diluted EPS
0.76
Operating cash flow
$27.41B
Free cash flow
$26.19B
Fetching…
Sources
Revenue
$39.33B
Net income
$22.09B
Diluted EPS
-4.49
Operating cash flow
$16.63B
Free cash flow
$15.55B
Fetching…
Sources
Revenue
$35.08B
Net income
$19.31B
Diluted EPS
0.78
Operating cash flow
$17.63B
Free cash flow
$16.81B
Fetching…
Sources
Is it cheap or expensive?
Fair value $131.99 vs current price $233.95
Wall Street consensus is the average analyst price target: $327.70 (148.3% higher than our fair-value estimate).
Our most-likely fair value is $131.99 a share — about 43.6% below today's price of $233.95, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $23.6B - more cash than debt. Interest coverage 503.4x.
Net debt
$-23.61B
Interest coverage
503.42x
NVIDIA Corporation's profit covers its interest bill about 503.4 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
NVDA
BASELINE
NVIDIA Corporation
Total debt $38.86B Interest coverage 503.42x This is the baseline the peer rows are being compared against.
Total debt $4.28B Interest coverage 28.20x -94% vs NVDA Carries about 17.9x less debt cushion than NVDA.
Total debt $59.42B Interest coverage 8.12x -98% vs NVDA Carries about 62.0x less debt cushion than NVDA.
Total debt $128.81B Interest coverage 50.88x -90% vs NVDA Carries about 9.9x less debt cushion than NVDA.
Total debt $50.54B Interest coverage -0.02x -100% vs NVDA This peer has almost no interest-payment cushion compared with NVDA.
Total debt $15.27B Interest coverage 18.67x -96% vs NVDA Carries about 27.0x less debt cushion than NVDA.
What you should know
The case for and against NVDA
3 Rewards
0 Risks
Rewards
-
Revenue grew 40.3% last year.
-
Returns 117.2% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
29.17x
Forward P/E
14.91x
P/B
24.67x
P/S
18.65x
EV/EBITDA
27.90x
PEG ratio
0.28x
Profitability
How much profit each dollar creates
Gross margin
74.7%
Operating margin
66.2%
Net margin
63.7%
ROE
117.2%
ROA
53.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.17x
Current ratio
4.59x
Quick ratio
2.92x
Total debt
$38.86B
Total cash
$62.47B
Growth
How the business has been compounding
Revenue TTM
$302.97B
Revenue 5Y CAGR
68.3%
EPS TTM
8.02
EPS 5Y CAGR
204.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$134.36B
Free CF TTM
$96.68B
FCF margin
31.9%
Dividend
Shareholder payout
Yield
0.4%
Payout ratio
3.5%
Last ex-div date
2026-09-10