Fundamentals snapshot
NVDA · NMS · Technology · Semiconductors
Current price
$205.10
52-week range
$138.83 - $236.54
Market cap
$4.97T
One-glance verdict
Fair-value range $80.57 – $132.28 (cautious → optimistic — tap the ? for the math)
Wall Street consensus: $298.42 (125.6% higher than our fair-value estimate)
Buy below $105.82 for a 20% safety cushion
Balance sheet
Net cash $40.36B. Interest coverage shows how many times profit covers the interest bill.
What stands out
Quick scan of the biggest positives and negatives from the detailed checklist below.
View 1 more in details ↓What this company does
NVIDIA designs powerful computer chips (GPUs), originally famous for creating realistic graphics in video games. Now, the company's main business is selling these same chips to power the massive data centers required for artificial intelligence. Because nearly every company developing AI relies on their hardware, NVIDIA has become a critical and foundational supplier for this major technological shift.
NVIDIA was started in 1993 with the goal of making better computer graphics for video games. A major turning point was their invention of the 'Graphics Processing Unit' or GPU in 1999, a special kind of computer chip that was amazing at creating realistic 3D images. In 2006, they created a software platform called CUDA, which allowed developers to use the power of GPUs for more than just graphics, opening the door for massive calculations. This was the key that unlocked the future: researchers discovered these chips were perfect for artificial intelligence, leading to a massive pivot that transformed NVIDIA from a gaming-focused company into the dominant provider of the 'brains' for the AI revolution.
At its core, NVIDIA designs high-performance computer chips called GPUs (Graphics Processing Units). Think of these as specialized brains for computers that can handle thousands of tasks at the same time, a process known as parallel computing. While this power was first used to make video games look incredibly realistic, it turns out to be the perfect tool for artificial intelligence. Today, NVIDIA's chips and software are the engine behind most of the world's advanced AI, from the systems that power chatbots to the supercomputers that scientists use for research.
This is NVIDIA's largest and fastest-growing business by far, making up the vast majority of the company's sales. This segment sells powerful computing systems, including GPUs and networking equipment, to the operators of data centers (massive warehouses of computers that power the internet and cloud services). Companies like Amazon, Google, and Microsoft buy these systems in huge quantities to train and run artificial intelligence applications, like the AI that generates text or images. This part of the business has exploded in size because of the massive demand for AI across every industry.
This is NVIDIA's original business and where it first became a well-known brand. This segment primarily creates the GeForce line of GPUs, which are powerful graphics cards that gamers and PC enthusiasts buy to make their video games run faster and look more realistic. It also includes chips for professional designers and artists who create 3D models and special effects for movies. While this was once the core of the company, it is now a much smaller piece of NVIDIA's total revenue (the money it brings in from sales) compared to its data center business.
NVIDIA's leadership is focused on dominating the new era of artificial intelligence. They are moving beyond just selling individual chips to providing entire data center-scale computing platforms, including hardware, networking, and the critical software that makes it all work together. The company is also pushing into new frontiers like 'physical AI,' which involves creating platforms for training humanoid robots and building 'digital twins' (realistic virtual copies of real-world environments like factories). By releasing a rapid succession of more powerful chip designs, they aim to stay far ahead of competitors and become the essential infrastructure provider for the entire AI economy.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
Wall Street consensus is the average analyst price target: $298.42 (125.6% higher than our fair-value estimate).
Buy below $105.82 for a 20% safety cushion. That means buying at least 20% below our fair value, as a buffer in case our estimate turns out too rosy.
Our most-likely fair value is $132.28 a share — about 35.5% below today's price of $205.10, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Net cash $40.4B - more cash than debt. Interest coverage 503.4x.
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.
Total debt $12.81B Interest coverage 503.42x This is the baseline the peer rows are being compared against.
Total debt $3.87B Interest coverage 28.20x -94% vs NVDA Carries about 17.9x less debt cushion than NVDA.
Total debt $64.91B Interest coverage 8.12x -98% vs NVDA Carries about 62.0x less debt cushion than NVDA.
Total debt $1.09T Interest coverage 156.51x -69% vs NVDA Carries about 3.2x less debt cushion than NVDA.
Total debt $45.03B Interest coverage -0.02x -100% vs NVDA This peer has almost no interest-payment cushion compared with NVDA.
Total debt $10.80B Interest coverage 20.56x -96% vs NVDA Carries about 24.5x less debt cushion than NVDA.
What you should know
The numbers
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Valuation
Profitability
Health
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Debt comparison
What you should know